A thorough study of freight claims will bring you early to a consideration of personal injury, stock and fire claims. The fad has been on many railroads to take these items of operating expenses away from their former location in the operating department and give them to the legal department. This exaggerated view of the laws of liability is partly responsible for the growth of the damage suit industry. It is another case of considering a part of the railway at the expense of the whole. We need legal advice and expert knowledge. The true function of the expert and the specialist is to see how much working knowledge he can impart to the layman for everyday use and reserve himself for the real complications which, if his tutelage has been sound, the layman will quickly recognize and bring back for expert assistance.
Not long ago I happened near a freight wreck. One of the cars in the ditch contained an emigrant outfit in charge of a man. This man was bruised, but not seriously injured. With the superintendent and the wreck train came a specialist, a claim adjuster for the legal department. He could settle only the personal injury. The damage to property was a freight claim and belonged to another department, the accounting, not formally represented at the impromptu function, and over which the superintendent as master of ceremonies had no jurisdiction. The various items of operating expenses involved on this occasion were in a decidedly diverged condition. What the spiritualist medium calls the control was in this case the office of a busy president some fifteen hundred miles away. Of course, the company spirit and common sense guided the superintendent, and he made the best of circumstances; perhaps risking criticism and censure for crossing sacred departmental lines. What do you think of a system that breaks down in emergencies? Is not an emergency a test of a system, a proof of its elasticity? Can we develop the highest efficiency of superintendents when we, the executive and general officers, place upon them the burden of departing from a system that fails to meet their practical problems? Is it not a species of unconscious administrative cowardice for boards of directors to impose implied and practical responsibility without conferring corresponding authority? Can such questions be ignored as exceptional, trifling, and captious? Do they not reach to the heart of railway organization and efficiency? Will the railways correct such errors themselves, or will they await once more the remedy by legislatures and commissions?
If a study of conditions does not convince you theoretically that one claim bureau should handle freight, stock, fire, and personal injury claims—in short all claims covering injuries to persons and damages to property—go down on the Chesapeake & Ohio and watch them do it practically. Instead of several specialists duplicating each other's itineraries, you will find some all-round claim men doing a variety of practical stunts. When they do strike a really different and highly technical case, they utilize the services of their best specialist in that particular line, not infrequently the general claim agent himself. Overcharge claims are very properly handled under their traffic auditor, being a matter of correction and not of operating disbursement. Were it up to me, I would make the general claim agent an assistant general manager, so that in claim matters he would have rank and authority superior to the division superintendent's. The division claim agent I would make an assistant superintendent, so that in claim matters he would have rank and authority superior to all employes on the division.
On this last division feature I once convinced my old friend, Cant B. Dunn, by a long, practical test.
Affectionately, your own,
D. A. D.
LETTER VII.
THE CHIEF OF STAFF IDEA.
San Antonio, Texas, May 20, 1911.
My Dear Boy:—Let me tell you something about a wonderfully effective human machine, the Confederate Army. I sit facing a Confederate monument which depicts a self-reliant son of the Southland, the type of man real railway training helps to perpetuate. Hard by is a shrine to valor, the Alamo, a reminder of the duty of altruism which an individual owes to his fellows.
Fifty years ago two great armies were organized to fight to a practical, working conclusion some of the indefinite compromises of the Federal Constitution. Each army was supported by the intelligent spirit of an aroused people. Each sought in its organization and operation to give the most effective expression to that spirit. Jefferson Davis and his advisers sought to profit by the experience of the old United States Army and to avoid inherent weaknesses in its organization. So the Confederate Congress created the grades of general and of lieutenant general, in order that a general might command a separate field army, a lieutenant general a corps, a major general a division, and a brigadier general a brigade. By thus more exactly defining official status, jealousies were minimized. Until Grant was made lieutenant general in 1864, the Federal Army had only two grades of general officers, major general and brigadier general. This led to confusion, to bickerings, and to petty jealousies. Since a major general might command such distinct and self-contained units of organization as a division, a corps, or a separate field army, numerous special assignments by the President became necessary.