Reports of the President and Superintendent of the New York and Erie Railroad to The Stockholders for the Year Ending September 30, 1855. (Superintendent’s Report -- Introduction)

SUPERINTENDENT'S REPORT

Office General Sup't N.Y. & Erie R.R.,

New York, March 25, 1856

HOMER RAMSDELL, ESQ.
President of the New York and Erie Railroad Company

Sir:
The magnitude of the business of this road, its numerous and important connections, and the large number of employés engaged in operating it, have led many, whose opinions are entitled to respect, to the conclusion, that a proper regard to details, which enter so largely into the elements of success in the management of all railroads, cannot possibly be attained by any plan that contemplates its organization as a whole; and in proof of this position, the experience of shorter roads is referred to, the business operations of which have been conducted much more economically.

Theoretically, other things being equal, a long road should be operated for a less cost per mile than a short one. This position is so clearly evident and so generally admitted, that its truth may be assumed without offering any arguments in support of it; and, notwithstanding the reverse, so far as practical results are considered, has generally been the case, we must look to other causes than the mere difference in length of roads for a solution of the difficulty.

A Superintendent of a road fifty miles in length can give its business his personal attention, and may be almost constantly upon the line engaged in the direction of its details; each employé is familiarly known to him, and all questions in relation to its business are at once presented and acted upon; and any system, however imperfect, may under such circumstances prove comparatively successful.

In the government of a road five hundred miles in length a very different state of things exists. Any system which might be applicable to the business and extent of a short road, would be found entirely inadequate to the wants of a long one; and I am fully convinced, that in the want of a system perfect in its details, properly adapted and vigilantly enforced, lies the true secret of their failure; and that this disparity of cost per mile in operating long and short roads, is not produced by a difference in length, but is in proportion to the perfection of the system adopted.

Entertaining these views, I had the honor more than a year since, to submit for your consideration and approval, a plan for the more effective organization of this department. The system then proposed, has to some extent been introduced, and experience, so far, affords the strongest assurances that when fully carried out, the most satisfactory results will be obtained.

In my opinion a system of operations, to be efficient and successful, should be such as to give to the principal and responsible head of the running department a complete daily history of details in all their minutiae. Without such supervision, the procurement of a satisfactory annual statement must be regarded as extremely problematical. The fact that dividends are earned without such control, does not disprove the position, as in many cases the extraordinarily remunerative nature of an enterprise may ensure satisfactory returns under the most loose and inefficient management.

It may be proper here to remark, that in consequence of that want of adaptation before alluded to, we cannot avail ourselves to any great extent of the plan of organization of shorter lines in framing one for this, nor have we any precedent or experience upon which we can fully rely in doing so. Under these circumstances, it will scarcely be expected that we can at once adopt any plan of operations which will not require amendment and a reasonable time to prove its worth. a few general principles, however, may be regarded as settled and necessary in its formation, amongst which are:

1. A proper division of responsibilities.
2. Sufficient power conferred to enable the same to be fully carried out, that such responsibilities may be real in their character.
3. The means of knowing whether such responsibilities are faithfully executed.
4. Great promptness in the report of all derelictions of duty, that evils may be at once corrected.
5. Such information, to be obtained through a system of daily reports and checks that will not embarrass principal officers, nor lessen their influence with subordinates.
6. The adoption of a system, as a whole, which will not only enable the General Superintendent to detect errors immediately, but will also point out the delinquent.