Charles DeLano Hine

“ 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. ”

“ Again, putting a man in the accounting department does not make him any more honest than the rest of us. There is more logic in taking freight claims away from the traffic department than there is in placing them under the accounting department. The traffic man, the accounting man, or the legal man can settle or refuse a claim. ”

“ The training of railway lawyers and railway accountants is often negative and resisting. The general counsel and the general auditor are inclined to tell us what we can not do. The traffic manager and the general manger, on the other hand, tell us what we can do. Out of it all should come a well-balanced administrative machine. We need the whole machine, not a specialized part, the positive as well as the negative elements, when we move alongside the reciprocating engine of government. ”

“ Such companies say in effect to the agent: “Yes, you are a good fellow; you get us a lot of business; you handle thousands of dollars of our money; you represent us in many things; you must understand, however, that a freight claim is a specialty requiring expert advice; a bad precedent might involve us in the future; you know, too, we might be criticised as opening the way to grafting by some other agents if we let you pay out money without authority from the accounting department ”

“ Among the practical advantages of claim control by the operating department are quicker recognition of lax methods causing claims, better discipline and morals of train and station forces, prompter settlement, and greater attention to seal records. The Chesapeake & Ohio makes surprise tests by breaking a seal and resealing the car with a different seal to see if the next man copies the last record, or actually takes his seal record from the car. This road also appeals to the human element. ”

“ Each man learns to feel a responsibility which is reflected in a desire for a clean record. The general claim agent, who is under the general manager, sends monthly to each division superintendent a list showing the name of every freight conductor on the division, with number of claims, if any, charged to him on account of pilferage from train, rough handling, etc. ”

“ There are many good ways. In the absence of an absolute unit of comparison the best way must be largely a matter of opinion. To me the logical and practical principle has been discovered by two of the best managed railroads in the country, the Chicago & North-Western and the Chesapeake & Ohio. ”

“ Only the operating man can do this. Many roads cling to the belief that their wonderful interior combustion and hot air harmony give the operating department sufficient information to serve the practical purpose. ”