My Life and Work by Henry Ford (surface ebook reader TXT) 📖

reason why the road should not have had a schedule; but it did not. The delays became legal matters to be taken up in due legal course; that is not the way of business. We think that a delay is a criticism of our work and is something at once to be investigated. That is business.

 

The railroads in general have broken down, and if the former conduct of the Detroit, Toledo & Ironton is any criterion of management in general there is no reason in the world why they should not have broken down.

Too many railroads are run, not from the offices of practical men, but from banking offices, and the principles of procedure, the whole outlook, are financial—not transportational, but financial. There has been a breakdown simply because more attention has been paid to railroads as factors in the stock market than as servants of the people.

Outworn ideas have been retained, development has been practically stopped, and railroad men with vision have not been set free to grow.

 

Will a billion dollars solve that sort of trouble? No, a billion dollars will only make the difficulty one billion dollars worse. The purpose of the billion is simply to continue the present methods of railroad management, and it is because of the present methods that we have any railroad difficulties at all.

 

The mistaken and foolish things we did years ago are just overtaking us.

At the beginning of railway transportation in the United States, the people had to be taught its use, just as they had to be taught the use of the telephone. Also, the new railroads had to make business in order to keep themselves solvent. And because railway financing began in one of the rottenest periods of our business history, a number of practices were established as precedents which have influenced railway work ever since. One of the first things the railways did was to throttle all other methods of transportation. There was the beginning of a splendid canal system in this country and a great movement for canalization was at its height. The railroad companies bought out the canal companies and let the canals fill up and choke with weeds and refuse. All over the Eastern and in parts of the Middle Western states are the remains of this network of internal waterways. They are being restored now as rapidly as possible; they are being linked together; various commissions, public and private, have seen the vision of a complete system of waterways serving all parts of the country, and thanks to their efforts, persistence, and faith, progress is being made.

 

But there was another. This was the system of making the haul as long as possible. Any one who is familiar with the exposures which resulted in the formation of the Interstate Commerce Commission knows what is meant by this. There was a period when rail transport was not regarded as the servant of the traveling, manufacturing, and commercial publics.

Business was treated as if it existed for the benefit of the railways.

During this period of folly, it was not good railroading to get goods from their shipping point to their destination by the most direct line possible, but to keep them on the road as long as possible, send them around the longest way, give as many connecting lines as possible a piece of the profit, and let the public stand the resulting loss of time and money. That was once counted good railroading. It has not entirely passed out of practice to-day.

 

One of the great changes in our economic life to which this railroad policy contributed was the centralization of certain activities, not because centralization was necessary, nor because it contributed to the well-being of the people, but because, among other things, it made double business for the railroads. Take two staples—meat and grain. If you look at the maps which the packing houses put out, and see where the cattle are drawn from; and then if you consider that the cattle, when converted into food, are hauled again by the same railways right back to the place where they came from, you will get some sidelight on the transportation problem and the price of meat. Take also grain. Every reader of advertisements knows where the great flour mills of the country are located. And they probably know also that these great mills are not located in the sections where the grain of the United States is raised. There are staggering quantities of grain, thousands of trainloads, hauled uselessly long distances, and then in the form of flour hauled back again long distances to the states and sections where the grain was raised—a burdening of the railroads which is of no benefit to the communities where the grain originated, nor to any one else except the monopolistic mills and the railroads. The railroads can always do a big business without helping the business of the country at all; they can always be engaged in just such useless hauling. On meat and grain and perhaps on cotton, too, the transportation burden could be reduced by more than half, by the preparation of the product for use before it is shipped. If a coal community mined coal in Pennsylvania, and then sent it by railway to Michigan or Wisconsin to be screened, and then hauled it back again to Pennsylvania for use, it would not be much sillier than the hauling of Texas beef alive to Chicago, there to be killed, and then shipped back dead to Texas; or the hauling of Kansas grain to Minnesota, there to be ground in the mills and hauled back again as flour. It is good business for the railroads, but it is bad business for business. One angle of the transportation problem to which too few men are paying attention is this useless hauling of material. If the problem were tackled from the point of ridding the railroads of their useless hauls, we might discover that we are in better shape than we think to take care of the legitimate transportation business of the country. In commodities like coal it is necessary that they be hauled from where they are to where they are needed. The same is true of the raw materials of industry—they must be hauled from the place where nature has stored them to the place where there are people ready to work them. And as these raw materials are not often found assembled in one section, a considerable amount of transportation to a central assembling place is necessary. The coal comes from one section, the copper from another, the iron from another, the wood from another—they must all be brought together.

 

But wherever it is possible a policy of decentralization ought to be adopted. We need, instead of mammoth flour mills, a multitude of smaller mills distributed through all the sections where grain is grown.

Wherever it is possible, the section that produces the raw material ought to produce also the finished product. Grain should be ground to flour where it is grown. A hog-growing country should not export hogs, but pork, hams, and bacon. The cotton mills ought to be near the cotton fields. This is not a revolutionary idea. In a sense it is a reactionary one. It does not suggest anything new; it suggests something that is very old. This is the way the country did things before we fell into the habit of carting everything around a few thousand miles and adding the cartage to the consumer’s bill. Our communities ought to be more complete in themselves. They ought not to be unnecessarily dependent on railway transportation. Out of what they produce they should supply their own needs and ship the surplus. And how can they do this unless they have the means of taking their raw materials, like grain and cattle, and changing them into finished products? If private enterprise does not yield these means, the cooperation of farmers can. The chief injustice sustained by the farmer to-day is that, being the greatest producer, he is prevented from being also the greatest merchandiser, because he is compelled to sell to those who put his products into merchantable form. If he could change his grain into flour, his cattle into beef, and his hogs into hams and bacon, not only would he receive the fuller profit of his product, but he would render his near-by communities more independent of railway exigencies, and thereby improve the transportation system by relieving it of the burden of his unfinished product. The thing is not only reasonable and practicable, but it is becoming absolutely necessary. More than that, it is being done in many places. But it will not register its full effect on the transportation situation and upon the cost of living until it is done more widely and in more kinds of materials.

 

It is one of nature’s compensations to withdraw prosperity from the business which does not serve.

 

We have found that on the Detroit, Toledo & Ironton we could, following our universal policy, reduce our rates and get more business. We made some cuts, but the Interstate Commerce Commission refused to allow them!

Under such conditions why discuss the railroads as a business? Or as a service?