The American Railway: Its Construction, Development, Management, and Appliances

by Thomas Curtis Clarke

The commissary or supply department of a railroad is not unlike that of a large army. Like a vast army, its necessities are many, and the various departments which make up the whole system must be provided with their necessary requirements in order to accomplish the end for which it is operated.

If, again, we regard a railroad as a huge animal, the quantity of supplies needed to fill its capacious maw is something overwhelming. It is always hungry, and the daily bill of fare (which includes pretty much everything known to trade) is gone through with an appetite as vigorous and healthy at the end as it exhibits in the beginning. Yet how few there are who realize the important part this one feature plays in the operation of the thousands of miles of railroad throughout the world! Upon the proper conduct of this department depends very largely the success of any road, so far as its relation to the stockholders is concerned; for while, as has been the case in the past, combinations and pools have aided in maintaining rates, and have served to increase the income, and attention has been paid to securing additional business in every possible way, the "out-goes" have often been overlooked, to the detriment of dividends and the general welfare of the property.

The supplies must be furnished in any event, in order that the various departments may perform their allotted duties—coal for the engines, stationery for the clerks, ties and rails for the tracks, oils for the lubrication of the thousands of axles daily turning, passage-tickets for the travellers, and a thousand and one things which are absolutely necessary for the safe and efficient conduct of every railroad in active operation. Each item serves its purpose, and, properly assimilated, keeps alive all the functions of one vast and complicated system. It is easy to see, then, the importance, first, of proper economy in buying, and then a correct and systematic distribution of all supplies. On the Philadelphia & Reading Railroad, for instance, the annual supply bills aggregate more than $3,000,000, covering such supplies as those just mentioned, and, in fact, everything which is purchased and used in the operation of the road; so that on a large system like that, the commissary department requires no end of detail, both in the purchase and the distribution of all material.

The expenditure for lubricating oils, waste, and greases alone amounts to more than $150,000 per annum, while the outlay for fuel represents about $1,200,000, and this is comparatively a small sum, since that road is a coal road, so called, and the cost for fuel, as a matter of course, is reduced to a minimum. There the store-room system, which has now been pretty generally adopted by many of the larger roads, is fully exemplified. With a General Store-keeper in charge, all supplies purchased are accounted for through him, and distributions are made daily among the sub-store rooms, which are located at convenient points; and they in turn distribute among the various departments, for consumption, all accounting daily to the General Store-keeper at Reading.

To give an idea as to the quantity of material required in the service on such a road, it may be stated that from twelve to fifteen car-loads of supplies per day are shipped to various points. When we consider that an ordinary car will carry from fifteen to twenty tons of freight, we find that the annual requirements will average about four thousand car-loads, or, say, about fifty thousand tons, and if all the cars were made up into one solid train they would occupy fully twenty-five miles of track, and consume an hour and a half passing a given point running at the ordinary speed of freight-trains.

To account carefully for all this requires necessarily a large army of clerks and other assistants, though, with the fundamental principles correct, it is no more difficult to account for large quantities than for small. The supplies are purchased in the first instance, delivered at the General Storehouse, are there weighed or measured and receipted for, are then distributed on requisition, and finally delivered to the several departments when needed; are charged out to the various accounts, after consumption, and all returns and records are finally kept on the books of the General Store-keeper.

It would be a large army indeed which would require so much for its maintenance; and, remembering the hundreds of roads, small and large, throughout the country, the measure of one's comprehension is nearly reached in estimating the amount of money and the thousands of tons of material represented.

If the buyer of railroad stocks for investment, besides looking into the returns of freight and passenger business for his decision, would investigate carefully the method adopted for the purchase and distribution of supplies on any road in which he may be interested, he might get information enough to satisfy himself that a large portion of the earnings were dribbling out through this department, and that, as a result, his stock might eventually cease to be a dividend payer.

In the matter of buying, the result depends entirely upon the purchasing agent, and this position must necessarily be occupied by a man of honor and integrity, coupled with a reasonable amount of shrewdness and aptitude for such business. As this department covers to a greater or less degree pretty much all the known branches of trade, the buyer cannot, under ordinary circumstances, thoroughly master the whole field as an expert; but he can nevertheless inform himself in the most important articles of manufacture to the extent of preventing deception or fraud. The field is extensive, and the sooner railroad companies realize that the purchasing agent is not a mere order clerk, the sooner they will discover that their disbursements for supplies are very much less, and that the chief part of the leakage has found its source in this very department.