Evening Star Newspaper, October 22, 1926, Page 28

MEN AND MONEY By M. S. Rukeyser. (Copyright. 1926.) The successful character of Sir Henry W. Thornton’s management of the government-owned railroad system in Canada is revealed in the current official reports of unprecedentedly large net earnings. The striking improvement shown in the first half of 1926 is being dupli- cated in the second. In the first six months of 1926, for example, the Cana- dian National Railways, which is the largest railroad system in the world from the standpoint of mileage, report- ed net earnings of $14,856,661, com- pared with $3,742,346 in the some pe- riod of 1925, andan deficit of $2,869,596 in the corresponding six months of 1922. The, extraordinary enhance- ment of earnings reflects both an im- provement: in gross business handled and also a conspicuous change in the economy and efficiency with which is moved. In 19 to handle every § ; in 1926 it takes only $87 ing enough over to pay interest on all the obligations of the railroad ni the hands of the public, though not enough to pay the government a re- turn on the obligations which it holds. Sir Henry Has Done It. In four years, Sir Henry, a native of the United States, who spent many vears in the employ of the Pennsyl- vania system, has, as president and chairman, taken the huge government- owned railroad system out of the red- ink column of deficits. Though, of course, he has not yet made the road profitable for its single stockholder, the government, the curve of earnings 1s still moving upward. Transporta- tion men and government officials throughout the world have their eyes focused on the iliuminating experi- ment which Sir Henry is directing. “Running a railroad,” Sir Henry told me, as we sat in his offices in Montreal and chatted about the im- provement in earning power in the C.N. R., “is based on a study of ma- terials and men. And in the past we dldn't give much attention to the hu- 'man side of the people. I find people a lot more interesting than materials. “The chief job In running a railroad 1% not merely to produce a service, but produce it and then sell it. §We act as though the customer is always right. We do our utmost to investi- sate compaints and to correct unin- tentional svurces of dissatisfaction. We have particularly endeavored to win the good will of localities through which the raflroads pass. Formerly there was ill feeling between com- munities and the railroad. We want cities and towns to be as proud of their railroad as they are of thelr base ball team. Belongs to the People. “We ask the people of Canada to remember that this railroad belongs to them, but we do not ask them to patronize it for that reason. We com pete with the privately owned Cana- dlan Pacific all along the line, and so- leit traffic only on the plea that we can give good service. We have increased our gross busi- ness by turning over 80,000 employes into traffic solicitors. We have told side of the traffic department st becauss they were playing in the outfleld was no reason why they should not back up the second baseman. As a result, every one is helping to create business. Although half the tips which we get in this way do not result in business, the other 50 per cent are productive. If only 10 per cent were fruitful it would be worth while. For example, a brake- man in the West was pointing out the interesting scenery to a passenger in the observation car. He happened to learn that the man was a shipper and was about to ship 100 tons of freight. The brakeman expressed such enthusiastic interest that the business man readily agreed to ship over our Hnes and let the brakeman get credit for creating the business.” I asked Sir Henry whether he thought government ~ownership of raflways, which had been adopted as un emergency policy after the war, was to be regarded as permanent. “The Canadlan people,” said Sir Henry, “did not consider the the- oretical merits of public versus pri- vate ownership and operation of the railroads. The government stepped in to meet an emergency and prevent dis- integration and wholesale bankrlptcies of the railroads outside the Canadian Pacific system. Government Holds Bag. “The financial problem of the Cana- dtan National Railws is not the ef. of government ownership It represents the same type of difficulties which resulted in widespread reor- ganizations of railroads in the United States west of the Mississippi River— namely, the fact that the railways were built in anticipation of the growth of the country. One-third of the total mileage of the Canadian Na- tional Railways iIs for colonization purposes, rather than to serve a de- veloped territory. Rather than per- mit railroad abandonment and the blow to the credit of a country that widespread bankruptey would involve, the government decided to hold the It has not only lent its credit made good actual deficits. “Having held this lic won't want to system becomes a lusty youth. see the time when the obligations of the Canadian National Railways will stand on their own merits and attract investors without the necessity of a government guarantee “Our experiment does not give the T'nited States any information about its own railroad problem. Our work has been mercly an attempt to meet a special set of circumstances. Each situation must be judged in the light of special ts. Our activities neither prove the value nor the evils of gov- ernment ownership as a general doc- trine. Has Not Hurt Initiative. “In our case, government ownership has not hurt initiative because we have not let it. 1 have seen run-down privately owned railroads in the United States which dominated their field and had little competition. Our competition with the Canadian Pacific is helpful. and I favor the continuance of two competing systems. I think the Canadian idea of competition be- tween a government owned and pri- vately owned system is good.” The Canadian Natlonal Rallways is waiting for the country to grow up to 1ts 80,000 miles of tracks. I asked Sir Henry whether any new construction was needed or contemplated. “The main trunk lines,” he an- swered,” will be adequate for several decades, but in the next few yvears ex- tensions and short lines to open up new territories will be necessary.” THE BUSINESS OF GETTING AHEAD. College Educations. The enrollments at the universities are growing far more rapidly than the population. ;ha problem of the colieges is not to ttract new students, but to establish & technique for gracefully excluding the oversupply of eager applicants. | en- | State universities and privately dowed institutions glike are finding thelr facilities taxed to the utmost. The new post-war prosperity, in more widely diffusing wealth, has greatly increased the number of fam- illes who can afford the luxury of making avallable for their children a college education. leges is another expression of the ris ing standard of living—of the same national force which also results in| the clamor fér better business, auto- . The rush to the col-| electrical appliances In the home, telephone service and radios. H. G. Wells’ Criticism. H. G. Wells, in a recent article, chal- lenged the value of a university edu- cation. He said that in another dec- ade Harvard and Yale would be empty relics. His prediction is probably wrong, but. what of his implied criti- cism? g Business is becoming increasingly complex, and the demand is growing for trained’ men. The old-fashioned classical education, which placed the chief emphasis on Greek, Latin and the esthetic- arts, does not fit men for executive jobs in corporations. It was never intended to. The new criticism is that the older forms of education do not fit men and women for modern life—apart from the money-making aspects of modern life. Accordingly university courses are being quickly made over in consonance with the new and important social and economic changes that have taken place. The demand is growing for men of broad human sympathies and dis plined minds. training gives those results, it is well worth the price. Most large employer recognize the worth of the best type of college men, but are impatient of be- ginners who wish special consideration merely because they have won a sheep- skin diploma A survey made by the National In- strial Conference Board into the business experiences of thousands of college men indicates widespread criti- cism of their attitude, tather than of their ability and training. In an ef: ak down the alleged ‘“su- perlority complex” of the college man, business men adv him, “for the time being, forget you ever went to college.” Serve a Genuine Use. Of course, the re of college men is in part s bable to the fact that they are older and have invested more in preparation than graduates of elementary and high schools who go diréctly into industry. And in bring- ing a challenge to things as they find them in business, cofiege men fre- quently. serve.a genuine use, even though they irritate older managers. Industry needs more public spirit and more humanity it, and right-think. ing college men Yof sound ideals are not to be denounced for being unwill ing to be mere cogs in the machiner: which they find. A college education js worthwhile if | nal hun- | attendance is based on a pers ger for knowledge. It rarely pays in the case of unwilling students, who g0 to college merely to gratify the whims and ambitions of parents. In the mass distribution of learning many are exposed to knowleGge, but not a, ways successfully. Incidentally, the universities have no monopoly on education. Men and women who must go to work after leaving element: chool n ac- quaint themselves with the heritage of human knowledge through intell gent reading. Some of the most culti In so far as university | - | board feet in excess of the same period | THE EVENING STAR, WASHINGTON, D. POKER PORTRAITS—THE WIFE IS ON THE PHONE. vated individuals I know were self- taught. Universities through exten- sion departments and home study courses are bringing their leadership also to those who cannot afford to go[ to college in the usual way. BOAT SERVICE STARTED. Steamer From Baltimore to Make { { | ! Patuxent River Landings. ‘ Special Dispatch to The Star. - * BALTIMORE, October 22.—The Maryland Transportation | Co. tomorrow wil dispatch the steamer Chester for about 18 river landings on the Patuxent River in St. Marys, Calvert, Charles and Prince Geprges Counties. This 18 intended to | be a permanent service to Baltimore | to accommodate the demands of the planters and others for stated sailings. The enterprise has behind it prom- inent shippers within the zone of activity. Capt. Thomas C. Hance is president and Capt. J. D. Williams is vice president and J. Frank Gwinn is | secretary and treasurer. As much i tobacco will be routed by the line, the | | deliveries will be made at Light street | opposite the State tobacco warehouses. Southern LAX METHODS SCORED. | Dayton Business Man Sees Menace ! to Prosperity in Crime. | Special Dispatch to The Star. i BALTIMORE, October 22 - Lax | | business methods and the crime wave | lare the two most serious threats | 'against prosperity, F. J. Nicholas of | ton, Ohlo, told members of the | | Kiwanis here yesterday. | " Overbuying,” out of date business | | methods, inadequate accounting, lack | lof capital and poor location arte the | |five cardinal causes of business failure, Nicholas said a survey by Harvard | University professors had revealed. | The crime wave he declared, appeared unimportant until it is pointed out $3,000,000,000 in cash and | | securities was' stolen in the United | States in 1925, while the total cost of | |crime totaled $10,000,000,000, all of which was paid sventually by rhe] | American business men. { = LUMBER TRADE HEAVIER. | | NEW YORK, October 22 (®)—The | lumber business is about 5 per cent | heavier this year, business of the ! country’s softwood mills for the first ! ,41 weeks having been 350,000,000 of 1925, the National Lumber Manu-| { facturers’ Association reports. Both | | softwood and hardwood had a Jarger | market last week than the week be- | fore, current orders of softwood mills |, being 10 per cent higher than a year ago. Shipments were the same, but production increased OH,iT's You! Weee, WeLL! Y- YES -UH HUH. I'T WAS QUITE IMPROMPTY) THE MiSSUS t— 71 THOUGHT THIS t's WHERE 0 Fimo You'! | CALLED 1P THE OFFICE AMD THE CLue. PLAYING POKER | SuPPOSE ” NO. MO | HAVENT. TUST TH CONTRARY. EAH. TELL YOU ALL e ABOUT \T “ 1 SuePPesE You've LOST A LOT OF MOMNEY « HOW MUCH ARE You ouT ? AHEAD ? HOW MucH ? ARE You AFRAID To TELL ME T Copr. 1926 (N. Y. World) Press Pub. Co. 2, L2y FRIDAY, OCTOBER 1926.° —By WESBTER. 0., NO. NO \NOEED. ) WHY, DEAR 1 5 | CAn'T WHY = AH ~AH - MO ONE e VERY WELL . I'LL HOME EARLY AN TEL YOU ALL A- WHAT? ” OH, FOR HEAVEN'S SAKE, Don'T TRy To STALLE TELL ME THE MAMES OF THE MEN YOU ARE PLANKNG waTH ” | SUPPOSE ALLTUOSE AWFUL ROUGHMNECK S ARE THERE , You KNow { DON'T APPROVE OF THOSE MEN! WHAT ? 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