Mr. F. J. Jones (Chairman)

The first issue of the “New Zealand Railways Magazine” provides a land mark in the history of the railways. The aim of the “Magazine” is to develop that community of interest and team work without which it is impossible to get good results. All ranks are therefore asked to rally to its support. While there are many amongst us who may feel a diffidence about contributing, each and all can at least “read, learn and inwardly digest.”

The motto of the “Magazine” “For Better Service” deserves the thoughtful consideration of every member of the staff. Carried to its logical conclusion it denotes high ideals and good practice. In every direction, avenues for better service will open up before those anxious to give of their best. In a transport service such as ours carrying some twenty-six million passengers per annum and some seven million tons of goods there are endless opportunities of showing courtesy, tact, and assistance to the travelling public. Every passenger, every consignor of goods, is a client of the Department and is entitled to the best service that can be given. And, let me say, the public is very appreciative even of the little courtesies extended to it, therefore endeavour to send it away satisfied.

Another way in which the Department can be served is in the recollection that all new or added business that comes to the Railway is a gain, and makes it that much easier to meet our obligations. Much has been done by the Commercial Branch, by Stationmasters, and others in obtaining extra business. But there is still much to do. Endeavour, therefore, to turn all business possible on to the railway. To do this clients must be given every consideration and courtesy, because it must always be remembered that the only claim we have for the added business is the service which we give.

A further field for better service that offers unlimited scope is that of the reduction of operating expenditure. A great gain forward is made when the economies possible are fully appreciated by the staff. Economy does not mean cheese paring or cutting expenditure without an equivalent gain, but it does mean stopping up every avenue of waste. It means, in effect, cultivating the financial sense.

There are many ways in which savings in operating can be made in train scheduling, in track up-keep, in shop work, in goods handling, in control of stores, etc.

For our present purpose it is not necessary here to go into details; but I do want to draw special attention to the control and use of stores and to the assembling and stacking of second hand material much of which has a large value. In Railway business as in a private merchant's business the stocks on hand should be the least quantity that will efficiently carry on.

The staff of the New Zealand Railways has shown on occasions innumerable that it can be depended upon to rise to the emergency when necessity calls. Disorganisation of train services resulting from slips, floods, and other causes, is tackled by all hands with a vigour and capacity beyond praise. In the same way the reorganisation of train services, of accounts, of tariff and commercial matters has been tackled, and the Board is very appreciative of the good work done. There is, however, still a tremendous amount to do. It may be said that there is no end to what can be done, and we look with confidence to the staff to carry on without relaxation of effort. Our aim must be to give the best service that can be given at the least possible cost; to extend our activities to feeding services; to stretch out our tentacles, so that we may eventually embrace the whole land transport of the Dominion.

Railway Organisation

By Mr. J. Mason , Operating Member.

Many things are essential to success in the matter of railway operation but none more so than sound organisation. There is a great diversity of opinion as to what organisation is most suitable, but all railwaymen who have given the question serious consideration would agree that no hard and fast rule can be laid down owing to the widely varying circumstances existing in the many countries served by railways.

An organisation entirely suitable in the case of one railway, may not meet the requirements of another where other conditions obtain, page 14 and it is in consequence of this that we find different systems in operation.

During my recent travels abroad I had the privilege of observing the methods of the administrations of a considerable number of railways and discussing the question of organisation with many highly capable administrators, most of whom were strong advocates of divisional organisation.

It would, of course, be sheer presumption to claim that any one system is the only correct one; but it may be said that, whereas most railways were at one time organised on the departmental system, by far the greater number are now organised on the divisional system. The South African Railways are of the same gauge as the New Zealand Railways and the conditions generally more closely approximate those in New Zealand than do those in most of the other countries which I visited. Furthermore, the South African Railways were formerly organised on the departmental system, and in view of the recent reorganisation of the New Zealand Railways any information as to why the organisation of the South African Railways was changed should be of special interest. The reasons for the change are set forth at some length in a publication entitled “South African Railways and Harbours,” and I give them in condensed form hereunder.

Divisional organisation was adopted throughout the whole of the amalgamated South African Railways when Union was established in 1910. Prior to that the departmental system was in operation on the railways of Cape Colony and also on the Natal Railways, but a few years previously the Central South African Railways had discarded it in favour of divisional organisation.

Under the departmental system the three main departments of the Cape Railways reported to the General Manager as the Chief Executive officer. The Traffic Department, controlled by a Chief Traffic Manager, was responsible for the running of trains, the conveyance of passengers and merchandise and for procuring and developing traffic. The Locomotive Department, controlled by a Chief Locomotive Superintendent, was responsible for the supply, running, and upkeep of engines and rolling stock, the control of the locomotive staff and the management of the railway workshops. The Engineering Department, controlled by an Engineer-in-Chief was responsible for the maintenance of the permanent way and the construction of new lines and new works.

The railways were divided into systems, and on each system there was a Traffic Manager, a Locomotive Superintendent and a Resident Engineer. Each of these officers had a complete office staff, and, under certain limited authorities, was responsible to the Chief Traffic Manager, the Chief Locomotive Superintendent and the Engineer-in-Chief respectively, for the satisfactory working of his section in so far as it concerned his own particular department.

Each system was again divided into districts, the traffic district being in charge of an Assistant Traffic Manager, the locomotive district in charge of a District Locomotive Superintendent, and the engineering district in charge of a District Engineer. These officers reported direct to the Traffic Manager, Locomotive Superintendent, and Resident Engineer respectively, and each had a separate office staff.

The Traffic Manager, Locomotive Superintendent and Resident Engineer combined as separate units under their respective departmental heads, towards the movement of all traffic offering.

It was found, however, that each department gave first consideration to its own direct interests. The Traffic Department having no interest in the engines beyond utilising them to the best advantage for the purpose of handling the traffic was sometimes ready to strain a point beyond the regulations when arranging engine loads, while the locomotive department, being responsible for the engines, was more concerned with their upkeep than with the movement of traffic. Delays to traffic, other than delays in running, did not affect the Locomotive Department by which such matters were at times subordinated to other considerations such as engine working and engine mileage.

The Engineering Department was more interested in its own sphere of operations than in the handling of traffic, and did not always readily acquiesce in the employment of more powerful engines where such could advantageously be used, as their use would entail increased maintenance expenditure.

Although complete co-operation between the different departments was essential to secure efficiency, want of harmony was inevitable in consequence of each department looking after its own interests first, and, with circumlocution through the various offices necessitating each local head reporting the circumstances to his departmental head, who, in turn, communicated with another and possibly a third department, opportunity for removing difficulties with any degree of promptitude was remote. The interests of the three departments were divergent and a want of harmony was inevitable as there was no master-mind to exercise control.

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The operating officers of the Locomotive and Traffic Departments had their own ideas as to the way in which traffic should be worked, and they naturally preferred to work it accordingly.

Under departmental organisation each separate department naturally endeavours to attain the results best suited in its own interests rather than the interests of the railways as a whole, and whilst this may not be done deliberately, it is the inevitable outcome of a system under which the efficiency of the railways as a public carrier is subordinated to departmental exigencies.

The only means of securing united effort on the part of responsible officers, and of avoiding friction caused through the clashing of departmental interests, is to make one officer the supreme head of the division and to place the other officers under his jurisdiction.

It has been urged that the secret of successful organisation lies in arranging that the units composing it shall act as one person, whilst utilising the utmost knowledge and experience of all.

The traffic, locomotive, and engineering branches being directly or indirectly connected with the operations of trains for the movement of traffic, the work of the division can be most efficiently carried out under one officer having complete control of the division. He can dispose of many minor points brought forward by the officers responsible for the running of trains and the maintenance of the line, either by decision on the spot or by reference to one superior officer. That is exactly what the transportation or divisional system of working ensures. This is the system which has been in operation throughout the South African Railways since Union, and, under it, the whole of the operations covering the movement of traffic are centred in one Transportation Department.

The South African Railways are at present divided into four systems, each system, so far as transportation is concerned, being under the direct control of an Assistant General Manager (corresponding to our New Zealand Divisional Superintendents) responsible to the General Manager. Each system, with the exception of Natal, is divided into two or three divisions (corresponding to districts in New Zealand), and each division is a complete unit under the charge of a divisional officer (District Traffic Manager and District Engineer in New Zealand). The divisional officer may be a professional or a non-professional man. If a traffic officer, he has a civil and a mechanical engineering assistant, designated Superintendent or Assistant Superintendent, to support and advise him, and an Assistant Superintendent to control the office force. All the officers are contained in one building and have one common staff of clerks to assist them.

The running staff, the maintenance staff, and the traffic staff, consisting of stationmasters, station clerks, inspectors, and foremen are under the Divisional Superintendent, from whom they receive all instructions and to whom they submit their reports. He is thus able to bring about results and to deal with matters which would otherwise be deemed to be entirely outside his scope.

The Assistant Superintendent (Maintenance) deals with matters affecting the maintenance of the line, and, similarly, the Assistant Superintendent (Mechanical) attends to engine and vehicle matters. The traffic official is styled Assistant Superintendent (Operating) and attends to the running of trains, delivery of goods, etc. In the absence of any one of the assistant superintendents another may act on his behalf no matter which branch of the work he usually undertakes.

The Divisional Superintendent, as the head of the division, is charged with the economical and satisfactory working of the whole of its operations. All expenditure on the division is debited against the Divisional Superintendent.

It is claimed that the transportation or divisional system tends to give officers a better training for the more responsible positions, than does the departmental system. It is undoubtedly the case that under the transportation, or divisional organisation, a broader view is taken of the working generally, and of various improvements along the line which are seen to be necessary from time to time. Under this system officers look more to general utility and less to the question as to who should bear the cost, and there is not the same tendency to take no interest in work which, under the departmental system, would be for the benefit of some other department.

On the South African Railways then, the outstanding features are that each system, with the exception of Natal, is divided into two or three divisions, each of which is a complete unit under the charge of a divisional officer (the Divisions correspond to our Districts); that the divisional officer may be a professional or a non-professional man, and, if a traffic officer, he has a civil and a mechanical engineering assistant to support and advise him, and an assistant Superintendent to control the office force; and that all the officers are contained in one building and have one common staff of clerks to assist them.

The running staff, the maintenance staff, and the traffic staff are under the Divisional Superintendent, from whom they receive all page 16 instructions and to whom they submit their reports. He is thus enabled to deal with matters which would otherwise be deemed to be entirely outside his scope.

The question naturally arises as to whether in New Zealand it would not be advantageous and more economical to abolish the positions of District Traffic Manager and District Engineer and to appoint District Superintendents with Maintenance or Traffic assistants as the case may be and, as a natural corollary, to house all the officers in one building and have one common staff of clerks. Personally, I think it would.

I am also of opinion that the organisation could be still further improved by appointing Assistant Divisional Superintendents instead of District Superintendents at Auckland and Christ-church—the headquarters of the Divisional Superintendents. This would obviate the necessity for separate offices and staffs for Divisional and District Superintendents, eliminate much correspondence, and permit of economies being effected in various directions. A further advantage would be that the Assistant Superintendent, who should be senior to the District Officers on the Division, would understudy the Divisional Superintendent, and would be capable of relieving him when necessary.

Actually, the present position in New Zealand is that we have Divisional Superintendents superimposed on the old Departmental organisation. In my opinion, as a result of this, that measure of co-ordination and co-operation that is desirable and should be capable of being effected under Divisional organisation, is hardly likely to be accomplished; for the different branches must inevitably continue to function more or less as such, whereas if the whole of the business were under one control the machine should work smoothly as a single unit which, after all, is the object of Divisional organisation.

In South Africa the Commercial side is under the control of the Divisional Superintendents. These, in turn, are responsible to the Assistant General Managers who centrol the respective systems. The circumstances existing in the Dominion no doubt differ from those in the Union, and the Dominion having established a Commercial Branch as a separate unit, which has undoubtedly been a success, I would not at the present time advocate placing the Commercial representatives in the various districts under the control of the District Officers. I wish, however, to emphasise the absolute necessity for close co-ordination between the District Officers and the representatives of the Commercial Branch in the interests of smooth and effective working; and I think, in view of the natural interrelationship of the Transportation and Commercial Branches, that both could with advantage be placed under one member of the board.

There is another direction in which I consider we could advantageously develop our organisation on the lines of that of the South African Railways:—For instance, increasing the authority of our Divisional Superintendents in connection with the authorisation of works; the settlement of claims; the retund of certain moneys where no principle is involved; the writing off of revenue which, owing to certain cricumstances, has become irrecoverable; the clearance of storage and demurrage charges, etc.

One effect of such development of Divisional organisation in New Zealand would be the elimination of a large amount of correspondence in the Districts, ancl also between the Divisional Superintendents and the Railway Board.

It is very undesirable that any matters which might reasonably be dealt with by Heads of Branches, I am Divisional Superintendents should be referred to the Board.

The working of the divisional system in other countries, I am convinced, is based on sound principles and has enabled many railways to obtain more satisfactory results than were obtainable by them under the departmental system. I am also convinced that it develops better all round railwaymen than the departmental system—men with a broader outlook which fits them to grapple successfully with the difficult problems constantly arising. Good team work is the secret of success in any large concern, and divisional organisation is designed to develop such work. Furthermore, divisional organisation gives plenty of scope to all members who take a keen, intelligent interest in their work. There is no cramping, narrowing influence, such as exists where the divergent interests of departments cause members to work selfishly instead of for the good of the railway as a whole.

Selling Transportation

Mr. A. W. Mouat, Commercial Member.

One of the most interesting developments in our Railways of recent years has been the creation and growth of a special branch, the members of which devote their attention especially to the sale of our commodity—Transportation—as distinct from the great majority of our staff who are engaged, so to speak, in the manufacture of our stock in trade. One has only to consider the matter for a moment to realise how entirely logical is this page 17 development. All successful wholesale businesses have their own specially selected staffs whose duty it is to create, maintain, and increase the demand for whatever commodity the business deals with.

The Railway Department is in a similar position. We manufacture and sell transportation. Our facilities for increasing the volume of our stock-in-trade are capable of enormous development. The more we develop, the lower will be the cost of production. And, as greater turnover and lower cost of production make for the material prosperity of the Department and, consequently, of the staff, it is directly to the interest of every member to increase the demand for our product.

Although previous appointments had been made of officers who were designated as Commercial Agents, it was not until 1924 that the first step was taken to constitute a business-getting organisation within the Department.

In that year, in pursuance of his policy of making a vigorous and sustained effort to retain and increase the Railway business, our Minister appointed a Commercial Manager with a staff of Business Agents in each Island. This is the official organisation at the present day, and it cannot be gainsaid that the main purpose of their appointment,—to retain and increase the business of the Department,—has been wonderfully successful.

In saving this, however, it must not be thought that all the credit is due to the few members directly attached to the Commercial Branch. No statement of the facts would be complete which did not ascribe to every individual member of the staff, outside the Commercial Branch, the fullest credit for their loyal and wholehearted co-operation in furthering the policy of the Department and the aims of the Branch. As a matter of fact it can well be said that the work of the Commercial Manager and his Business Agents could not have been nearly so successful, if the general staff had not rendered them the fullest assistance. It must also be remembered that in the future, as in the past, the success of the Department's efforts for “More Business” is, to a very great extent. dependent upon the continuation of this co-operation and assistance.

Every member—no matter what his position in the Service—who, by the display of interest in, and attention to the requirements of the public, creates a friendly feeling, or makes a friend for the Railways, is helping the cause.

After all, the money cost is not the only thing that counts. Service, polite, attentive and helpful service, counts in everyday life for as much as mere shillings and pence. Think of this in its personal aspect. Would you take your own business to an establishment where you were treated in an off-hand, don't-care-a-damn manner, if there is close by another establishment where you know you will be met with attention, courtesy, and interest in your requirements

This matter of courteous, attentive and helpful service is so vital to the popularity and success of our business that its importance cannot be overestimated nor can its constant practice be too strongly urged.

In meeting the keen road competition with which we are now faced in so many directions, it is very frequently the case that this factor—good service—is all that is needed to swing the business over to us instead of to our competitors. Generally the freight rates are in our favour, or if not, the difference is so small as to be immaterial, and the business goes to whichever system shows the most desire to look after the interests of the potential customer. Let us all resolve then that, so far as it depends upon us, that system shall be the New Zealand Railways.

The making of friends (and customers) is not necessarily restricted to those whose every request can be met. Many requests are, and will continue to be, made that it is not possible to accede to, but it does not follow because you cannot grant a man's request that you cannot keep his friendship for the Railways. On the contrary, these are the very cases that call for our best efforts. Show him that although you cannot do exactly what he wants, you are desirous of doing all that is in your power to help him. If you can, explain to him why his request cannot be granted, see if there is any alternative open of which he is not aware. In other words do your best to help him. By doing this you will find that you rarely lose a friend, but on the other hand you will frequently and unexpectedly make one.

From what has been said it will be seen then that the Commercial Branch of our Railways has grown from small beginnings till, now, every man on the pay roll, no matter to what branch he belongs, or what position he occupies in the service, is, and should regard himself as, a potential business-getter. Though everyone is not on all occasions dealing with an individual who is buying transport facilities, yet any man on the staff who, in the course of his work, makes a friend for the Railways may indirectly induce business although he may never hear of it.

Remember that each friend made for the Railways is a valuable asset, a possible source of business. It is up to every one of us who depends on the Railways for his livelihood, to keep this always in mind.

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By keeping the idea of commercial enterprise constantly before us, and regarding the Railway as a kind of mill in which transportation, instead of wool or wheat, is the raw material needed to keep both the men and the machinery fully and profitably occupied, the economic aspect becomes clear. It is to the interest of every member to help to bring traffic to the trains; to keep loaded, prompt, and accurate, these swift shuttles of intercourse and commerce which are weaving ever closer the rich fabric of the Dominion's producing, manufacturing and trading interests, on which industrial and national stability and prosperity depend.

In your business or professional life, you rise or you fall according to you ability to get along with human beings, to command their respect, and to create a spirit of co-operation.

John Grier Hibben

President, Princeton University, U.S.A.

* * *

A lady writing to the Department has suggested that the way to prevent accidents at level crossings, is for each train to stop at every crossing and whistle loud and long before proceeding to negotiate it.

Commercial Travellers' Samples
Call for Careful Handling.

Each Commercial Traveller is a potential freight-getter, intent on securing business for his employer. Good service to the traveller is good service to the Department, for if samples be miscarried, delayed, injured or destroyed by want of proper care on our part, loss of trade both to the firm concerned and to this Department is likely to ensue.

Every railwayman who handles Commercial Travellers' luggage can assist greatly in giving satisfaction by exercising proper care in handling and stowing.

Don't roll, push, or throw the containers about, but lift them.

Don't leave samples exposed to the rain.

Do use trollies whenever available, especially when loading into or unloading from vans, but in any case

Don't simply drop or push the containers from the van to the platform. Want of care in this respect causes 50 per cent, of the damage.

The goods are valuable—Handle them accordingly.