Canadian engineer and early organizational theorist (1815–1878)
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:
A superintendent of a road fifty miles in length can give its business his professional attention and may be constantly on the line engaged in the direction of its details; each person is personally 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 five hundred miles in length a very different state 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 system perfect in its details, properly adapted and vigilantly enforced, lies the true secret of their [the large roads’] 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.
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.