“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.”

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

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Canadian engineer and early organizational theorist 1815–1878

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