Daniel McCallum: Direction

“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.”

Daniel McCallum

Source: Report of the Superintendent of the New York and Erie Railroad to the Stockholders (1856), p. 34: Third paragraph. Cited in: Alfred D. Chandler, Jr. (1962). Strategy and Structure: Chapters in the History of the Industrial Enterprise. p. 21-22

Secret , Failure , Question , Business

“This comparison [of division accounts] will show the officers who conduct their business with the greatest economy, and will indicate, in a manner not to be mistaken, the relative ability and fitness of each for the position he occupies. It will be valuable in pointing out the particulars of excess in the cost of management of one division with another, by comparison of details; will direct attention to those matters in which sufficient economy is not practiced; and it is believed, will have the effect of exciting an honorable spirit of emulation to excel.”

Daniel McCallum

Source: Report of the Superintendent of the New York and Erie Railroad to the Stockholders (1856), p. 57; As cited in Chandler (1977, p. 115-16)

Business

“1. The several divisions and branches are in charge of superintendents, who are held responsible for the successful working of their respective divisions, and for the maintenance of proper discipline and conduct of all persons employed thereon, except such as are in the employment of other offices "acting under directions from the general superintendent's office, as herein after stated. They possess all the powers delegated by the organization to the general superintendent, except in matters pertaining to the duties of general ticket agent, general freight agent, general wood agent, telegraph "management, and engine and car repairs.”

Daniel McCallum

Report of the Superintendent of the New York and Erie Railroad to the Stockholders (1856)

Cars , Success , Personality

“Collisions between fast and slow trains, moving in the same direction, are prevented by the application of the following rule: The conductor of a slow train will report himself to the Superintendent of Division immediately on arrival at a station where, by the time-table, he should be overtaken by a faster train; and he shall not leave that station until the fast train passes, without special orders from the Superintendent of Division.”

Daniel McCallum

Source: Report of the Superintendent of the New York and Erie Railroad to the Stockholders (1856), p. 45: Cited in: "Railway Engineering in the United States" in The Atlantic Monthly, Volume 02, No. 13, November, 1858. p. 651

Time , Training

“The enforcement of a rigid system of discipline in the government of works of great magnitude is indispensable to success. All subordinates should be accountable to and be directed by their immediate superiors only; as obedience cannot be enforced where the foreman in immediate charge is interfered with by a superior officer giving orders directly to his subordinates.”

Daniel McCallum

Chandler commented: To illustrate more clearly these lines of authority, McCallum drew up a detailed chart-certainly one of the earliest organization charts in an American business enterprise. (p. 103)
Source: Report of the Superintendent of the New York and Erie Railroad to the Stockholders (1856), p. 40. Partly cited in: Chandler (1977, p. 102)

Success

“Hourly reports are received by telegraph, giving the position of all the passenger and the principal freight trains. In all cases where passenger trains are more than ten minutes, or freight trains more than half-an-hour behind time, on their arrival at a station the conductors are required to report the cause to the operator, who transmits the same by telegraph to the General Superintendent; and the information being entered as fast as received, on a convenient tabular form, shows, at a glance, the position and progress of trains, in both directions, on every Division of the Road.”

Daniel McCallum

Source: Report of the Superintendent of the New York and Erie Railroad to the Stockholders (1856), p. 51-52 about the "System of reports and checks"; Partly cited in Chandler (1977, p. 103)

Time , Training