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9. v
Contents
Preface ................................................................................................. xiii
Acknowledgments ..............................................................................xvii
About the Authors ...............................................................................xix
Chapter 1 The Internet of Things (IoT) Paradigm:
The Use Cases..................................................................... 1
1.1 Introduction to Internet of Things.................................1
1.1.1 Digitized Entities.................................................1
1.1.1.1 Connected Devices...............................2
1.1.1.2 Cloud Services.......................................2
1.1.1.3 Edge/Fog Device Clouds......................2
1.1.2 IoT Analytics.........................................................4
1.1.3 IoT Applications....................................................4
1.2 The Reason Why IoT is Strategically Sound..................4
1.2.1 IoT Leads to Smarter Computing.......................4
1.2.2 IoT Delivers Smarter Environments..................5
1.2.3 IoT Prescribes the Shift toward
People in IT...........................................................5
1.3 The Prominent IoT Realization Technologies...............5
1.4 The IoT: The Key Application Domains.........................6
1.5 IoT Use Cases.....................................................................7
1.5.1 Smart Grids...........................................................7
1.5.1.1 Optimizing the Power Grid.................8
1.5.1.2 Smart Metering.....................................8
1.5.2 Smart Flights.........................................................8
1.5.2.1 Imbuing Jet Engines with AI...............8
1.5.3 Smart Agriculture and Farming........................8
1.5.3.1 Smart Farming....................................10
1.5.4 Smart Manufacturing........................................10
1.5.5 Smart Cities.........................................................10
1.5.5.1 Real-Time Communication...............10
1.5.6 Traffic and Pollution Reduction.......................11
1.5.6.1 Improved Monitoring.........................11
10. vi • Contents
1.5.6.2 Smart Traffic Management................11
1.5.6.3 Making Trash Collection
More Efficient......................................11
1.5.7 Shopping & Retail...............................................11
1.5.8 Smart Homes.......................................................12
1.5.9 Smart Healthcare................................................12
1.5.9.1 Remote Health Monitoring................. 12
1.5.9.2 Ensuring the Availability
and Accessibility of Critical
Hardware..............................................12
1.5.9.3 Healthcare............................................12
1.5.10 Smart Vehicles.....................................................12
1.5.10.1 Using Sensors to Make
Driving Safer........................................12
1.5.10.2 Transports and Logistics...................13
1.5.11 IoT-Enabled Telematics Use Cases...................13
1.5.11.1 Fleet Management...............................13
1.5.11.2 Auto Insurance....................................13
1.5.11.3 Transit Fleets (Mobility-as-a-
Service).................................................13
1.5.11.4 The Beneficiaries of the
Telematics Use Cases..........................13
1.5.12 Solar Farm Monitoring & Analytics
Using Cloud IoT Core........................................14
1.5.12.1 Real-Time Monitoring........................14
1.5.12.2 Real-Time Maintenance.....................14
1.5.13 IoT Use Cases in Marketing/Sales....................14
1.5.14 IoT Use Cases in Product Development..........14
1.5.15 IoT Use Cases in Operations/
Manufacturing....................................................14
1.5.16 IoT Use Cases in Education...............................15
1.5.17 IoT Use Cases for the Oil and Gas
Industry...............................................................15
1.5.17.1 Redefining Field-Based Intel
for the Oil and Gas Industry.............15
1.5.18 Physical Security Use Cases..............................15
1.5.18.1 Improving Physical Security.............. 15
1.5.19 Optimization Use Cases....................................15
1.5.19.1 Business Optimization.......................16
11. Contents • vii
1.5.20 IoT Edge Data Analytics
Use Cases.............................................................16
1.5.20.1 Thwarting Illegal Fishing...................16
1.5.21 IoT Use Cases for Business................................16
1.5.21.1 Smart Lighting....................................16
1.5.21.2 Security and Access Controls............16
1.5.22 IoT Use Case in Consumer
Electronics...........................................................16
1.5.22.1 Smart House/Smart Office.................16
1.5.23 IoT Use Cases in Logistics.................................17
1.5.23.1 Smart Labels........................................17
1.5.23.2 Cargo Integrity Monitoring..............17
1.5.23.3 Consumer Product Usage
Analysis for Marketing......................17
1.5.23.4 Serving Consumers and Business
Users with the Same Analytics.............17
1.5.23.5 Sensors and Cameras Enable
Connected Events...............................17
1.5.23.6 Video Analytics for Surveillance
and Safety.............................................17
1.5.23.7 Predictive Maintenance.....................17
1.5.23.8 Asset Tracking.....................................17
1.6 An Integrated and Insights-Driven IoT
Application Scenario.......................................................18
1.7 Conclusion........................................................................18
Chapter 2 An Intelligent IoT Framework for Smart Water
Management in Agriculture............................................. 21
2.1 Introduction to Architecture of Smart Agriculture.........21
2.2 Case Study........................................................................23
2.3 Workforce Monitoring Challenges...............................24
2.4 Related Work....................................................................25
2.5 Novel Technique for Smart Water Management
in Precision Agriculture.................................................25
2.6 Machine Learning Technique for Smarter
Agriculture...................................................................... 28
2.6.1 Feature Selection Applications.........................29
2.6.2 Labeled Data........................................................29
12. viii • Contents
2.6.3 Unlabeled Data...................................................29
2.6.4 Supervised Learning..........................................29
2.7 Dimension Reduction Techniques............................... 30
2.8 Sequential Forward Selection........................................31
2.9 Random Forest.................................................................32
2.10 Naïve Bayes.......................................................................32
2.10.1 Classification of Naïve Bayes............................32
2.11 Specification.....................................................................35
2.12 Design................................................................................36
2.13 Methodology....................................................................37
2.13.1 Fuzzy-Based Decision
System..................................................................38
2.14 Results...............................................................................39
2.15 Conclusion........................................................................41
Chapter 3 IoT-Enabled Smart Traffic Control System for
Congestion Control........................................................... 43
3.1 A Brief Introduction to Architecture of Smart
Traffic................................................................................ 43
3.2 Traffic Congestion Measuring...................................... 44
3.3 Traffic Congestion and Its Causes.................................47
3.3.1 Causes of Traffic Congestion .......................... 48
3.4 Traffic Management Using Computer
Vision............................................................................... 48
3.5 Wireless Sensor Network’s Role in Smart
Traffic.................................................................................50
3.6 Enhance Intelligent Traffic Light Management
by Employing PLC...........................................................53
3.6.1 Electro-Pneumatic Controllers........................ 54
3.6.2 Programming a PLC......................................... 54
3.6.3 Push Button.........................................................55
3.6.4 Limit Switches.................................................... 56
3.6.5 Pressure Switches................................................57
3.6.6 Solenoids..............................................................57
3.6.7 Relays....................................................................58
3.6.8 Timers for Traffic Lights....................................59
3.6.9 Counters.............................................................. 60
3.6.10 Memory Elements..............................................61
13. Contents • ix
3.6.11 Replacement of Equipment with the
Ladder Diagram..................................................61
3.6.12 Schematic Diagram............................................62
3.7 Conclusion........................................................................63
Chapter 4 An Intelligent Airport System Using Artificial
Intelligence (AI) Algorithm............................................. 65
4.1 Introduction to Intelligent Airport...............................65
4.1.1 Artificial Intelligence.........................................65
4.2 Characteristic of Smart Airport....................................67
4.2.1 Physical Layer..................................................... 68
4.2.2 Networking Layer.............................................. 68
4.2.3 Service Application Layer................................. 68
4.2.4 Integration Layer............................................... 68
4.3 Challenges for Smart Airport....................................... 68
4.3.1 Characteristics of Airport.................................69
4.4 Smart Assets and Asset Groups of the Airport...........71
4.5 Smart Radar for Airport Surveillance..........................73
4.5.1 End-to-End Passenger Journey.........................76
4.6 Support Vector Machines Approach for
Classification....................................................................77
4.7 Evaluation.........................................................................79
4.8 Conclusion....................................................................... 80
Chapter 5 An Effective IoT Framework for the Healthcare
Environment...................................................................... 81
5.1 A Brief Introduction to Healthcare Environment..........81
5.2 Related Work....................................................................83
5.3 ANN for Real-Time Monitoring................................... 84
5.3.1 Machine Learning Algorithms.........................85
5.3.2 K-Nearest Neighbor...........................................85
5.4 Decision Tree Algorithm............................................... 86
5.5 Challenges in Feature Selection.................................... 86
5.5.1 Univariate Approach..........................................87
5.5.2 Multivariate Approach......................................87
5.6 Support Vector Machines (SVM)..................................87
5.7 An Effective IoT Framework for Intelligent
Healthcare Monitoring.................................................. 88
14. x • Contents
5.8 Evaluation of the Framework.........................................94
5.9 Conclusion........................................................................95
Chapter 6 Fuzzy Scheduling with IoT for Tracking and
Monitoring Hotel Assets................................................... 97
6.1 Introduction.....................................................................97
6.1.1 Smart Hotel.........................................................97
6.2 Prior Art........................................................................... 99
6.3 Ubiquitous Computing.................................................. 99
6.3.1 Hotel Staff Worker’s Location Monitoring....... 100
6.4 Solution Description and Solution
Approach.........................................................................101
6.4.1 Feature Selection...............................................102
6.4.2 Feature Extraction............................................102
6.5 Random Forest...............................................................103
6.6 Naïve Bayes.....................................................................104
6.7 Conclusion......................................................................107
Chapter 7 An Effective IoT Drainage System for Detection
of Drainage Pipes............................................................ 109
7.1 A Brief Introduction to Drainage System..................109
7.2 Internet of Things for Drainage System.....................110
7.3 Biosensors for Drainage System Workers..................113
7.4 Ground-Penetrating Radar (GPR) Maps
for Drainage Systems.....................................................114
7.4.1 Technical Overview..........................................114
7.4.2 Pipe Penetration................................................115
7.4.3 Width of Pipe....................................................115
7.4.4 Speed of Detection............................................115
7.4.5 Pipe Detection Capability...............................115
7.5 Drainage Pipe Radius Detection Method..................115
7.5.1 Identify the Regions of 3D GPR Data............117
7.5.2 Extraction of Pipe Location............................117
7.5.3 Calculation of Pipe Radius..............................121
7.5.3.1 Divide the Image...............................121
7.5.3.2 Pixel Length Measuring.................. 122
7.5.3.3 Pipe Radius....................................... 122
7.6 Conclusion..................................................................... 128
15. Contents • xi
Chapter 8 Predictive Maintenance in IoT for Retail
Machine Industries......................................................... 129
8.1 Introduction...................................................................129
8.2 Dead Reckoning for Locating Employee
and Customer Movement for Smart Retail
Industries........................................................................131
8.3 Prior Art......................................................................... 134
8.4 Case Study......................................................................135
8.4.1 Predictive Machines Best Methods
for Smarter Retail.............................................135
8.5 Solution Description and Approach...........................135
8.6 Exhibit Profiles for an Intelligent Machine
with Smart Retail...........................................................135
8.7 Intelligent Retailer Machines with Machine
Learning Algorithms....................................................139
8.7.1 Random Forest..................................................139
8.7.2 Naïve Bayes........................................................139
8.7.3 AdaBoost...........................................................140
8.8 Monitoring Smart Retail Machines............................141
8.9 Conclusion......................................................................142
Chapter 9 Integrating ANN and IoT for Predictive
Maintenance in Industries............................................. 145
9.1 Introduction...................................................................145
9.2 Application.....................................................................146
9.3 Knowledge Regarding the Prediction
of Suitable Opportunity................................................146
9.4 Maintenance of the Best Practices..............................147
9.5 Analytics Background..................................................147
9.5.1 Descriptive Analytics.......................................147
9.5.2 Prescriptive Analytics......................................147
9.5.3 Predictive Analytics.........................................148
9.6 Solution Approach.........................................................149
9.7 Dimension Reduction Techniques..............................151
9.7.1 Feature Selection...............................................151
9.7.2 Feature Extraction............................................152
9.7.3 Naïve Bayes........................................................152
9.7.4 AdaBoost...........................................................153
16. xii • Contents
9.8 Result.............................................................................. 154
9.9 Evaluation.......................................................................155
9.10 Analysis...........................................................................155
9.11 Conclusion......................................................................156
Chapter 10 IoT Integration in Blockchain for Smart Waste
Management.................................................................... 159
10.1 A Brief Introduction of Waste Management.............159
10.1.1 Challenges in Waste Management.................160
10.1.2 Awareness and Knowledge..............................160
10.1.3 Waste Separation at Source.............................160
10.1.4 Technology Upgrade........................................162
10.1.5 Construction of Landfills................................162
10.1.6 Accountability in Waste Management.............162
10.1.7 Tracking E-Waste (E-Waste
Management EWM)........................................162
10.2 Waste Management Use Case......................................163
10.3 Prior Art..........................................................................164
10.4 Dispose Waste Employing TAG..................................165
10.4.1 IoT Protocols in MQTT...................................166
10.4.1.1 MQTT Broker....................................167
10.4.1.2 Subscriber...........................................167
10.4.1.3 Publisher.............................................167
10.5 Blockchain-Driven Waste Management.....................167
10.6 Blockchain and IoT........................................................168
10.6.1 Swachhcoin........................................................169
10.6.2 Recereum...........................................................170
10.6.3 Plastic Bank.......................................................170
10.7 Conclusion......................................................................171
References............................................................................................. 173
Index..................................................................................................... 179
17. xiii
Preface
Through a bevy of proven and potential digitization and edge technologies,
all our physical, mechanical, and electrical systems are getting digitized.
Digitized objects are able to find, bind, and leverage the unique capaci-
ties and capabilities of one another in their vicinity and with remote ones
through one or more networks. That is, they are destined to join in the
mainstream computing. The much-discussed context-awareness feature
and functionality can be realized and provided through such digitized
artifacts and their collaborations. This is the crux of the fast-emerging
and evolving concept of the Internet of Things (IoT). That is, all kinds of
tangible objects in our everyday environments (homes, hospitals, hotels,
etc.) are being technologically enabled to be digitized. It is estimated by
market analysts and watchers that there will be trillions of digitized enti-
ties in the years to come. Furthermore, all kinds of electronics appliances,
equipment, instruments, and machineries are meticulously connected
with one another. As a result, we are heading toward billions of connected
devices. In addition, devices at ground level are being integrated with
cyber/virtualized/containerized applications, services, and databases.
That is, various physical systems in our midst are getting formally linked
up with remotely-held cloud systems to bring forth futuristic use cases for
empowering human beings in their assignments and obligations. This dis-
tinguished combination is being portrayed as cyber-physical systems. The
deeper and extreme connectivity and integration aspects clearly foretell
that all are tending toward a cloud-connected era.
As digitized and connected elements grow exponentially in number,
their purposeful interactions are bound to generate a massive amount
of multi-structured data. The challenge here is to transition raw data to
information and knowledge, which can be used by people and systems to
be intelligent in their decisions, deals, and deeds. With the faster matu-
rity and stability of artificial intelligence (AI) algorithms and approaches,
knowledge discovery and dissemination out of data heaps get simplified
and streamlined. Thus, batch and stream processing of big and real-time
data toward the realization of actionable insights in time are being touted
as the key challenge for the ensuing era of knowledge. With IoT and CPS
data getting carefully collected and crunched to extricate useful and
18. xiv • Preface
usable information through the smart application of AI technologies and
tools, there will be a dazzling array of smarter and sophisticated services
and applications. That is, the cognitive era is all set to dawn and beckon us.
Precisely speaking, cloudified, connected, and cognitive systems have laid
down a stimulating foundation to visualize a fresh set of game-changing
and trend-setting applications for the total human society. In this book,
we have focused on presenting next-generation use cases of IoT and IoT
data analytics for a variety of business verticals.
Chapter 1, The Internet of Things (IoT) Paradigm: The Use Cases, dis-
cusses the various personal, social, and industrial use cases of the IoT
paradigm. The subsequent chapters will dig deeper and dwell at length
on various popular use cases and their real-time applications in everyday
human life, where it reduces the manpower and the risk to human beings
and safeguards them.
Chapter 2, An Intelligent IoT Framework for Smart Water Management
in Agriculture, presents intelligent water management for smart agricul-
ture. In order to accommodate a growing population, the call for more
food will increase and new strategies should be designed to create more
reliable agricultural production and improve the growing instances of
water scarcity.
Chapter 3, IoT-Enabled Smart Traffic Control System for Congestion
Control, introduces a smart traffic management system and adjustments
that influence a transportation system; for example, the impact on the
whole transportation system is influenced by significant enhancements
of one corridor. Smart traffic lights have been set up to oversee a stream
of traffic, but these are ending up progressively wasteful because of their
structure.
Chapter 4, An Intelligent Airport System Using Artificial Intelligence
(AI) Algorithm, presents the challenges, characteristics, and best methods
for enhancing implementation in smart airports. Airports are regarded as
a gateway to any nation. Based on the report of the US Homeland Security
Presidential Directive 7 (HSPD-7), airports are considered as a sub-sector
of the Transportation Systems Sector and therefore represent an impor-
tant infrastructure that must be enhanced in terms of surveillance.
Chapter 5, An Effective IoT Framework for the Healthcare Environment,
discusses reporting the progress of patients by the available technology
used in the healthcare system and how it integrates patient information
for their caretakers. This could increase the physical and mental health of
patients at minimal cost in less time.
19. Preface • xv
Chapter 6, Fuzzy Scheduling with IoT for Tracking and Monitoring
Hotel Assets, utilizes fuzzy scheduling-based intelligent real-time track-
ing and monitoring of the workers in the smart hotel with the enhanced
IoT technology. Here, the IoT is combined with fuzzy scheduling to benefit
as maximum for the customers.
Chapter 7, An Effective IoT Drainage System for Detection of Drainage
Pipes, presents several techniques in designing an effective drainage sys-
tem and employing generation and penetration of radar technique for
detection of drainage pipes. In recent years, drainage management as
well as urban storm drainage in urban infrastructure has gained major
importance.
Chapter 8, Predictive Maintenance in IoT for Retail Machine Industries,
presents a predictive maintenance approach, which involves direct moni-
toring of the mechanical condition of plant equipment to decide the actual
mean time to malfunction for each preferred machine. The mechanical
construction of the equipment will be monitored to estimate the fault that
occurred in the machines and to identify the time of the fault.
Chapter 9, Integrating ANN and IoT for Predictive Maintenance in
Industries, proposes a method with an Artificial Neural Network (ANN)
and IoT that could be best used for prediction purposes when compared
to other algorithms since it does the best purpose of function approxima-
tion, clustering, and forecasting. Finally, the comparison has been made
between ANN and other algorithms in terms of accuracy, precision, and
specification.
Chapter 10, IoT Integration in Blockchain for Smart Waste Management,
presents techniques based on IoT and blockchain-driven waste manage-
ment, and deals with effective waste management with the implemen-
tation of IoT with the machine learning algorithm that could be highly
revolutionary in the management of waste.
21. xvii
Acknowledgments
I express my sincere and heartfelt gratitude to the management concerns
of Nehru Group of Institutions, Adv. Dr. P. Krishna Das, Chairman &
Managing Trustee, and Dr. P. Krishna Kumar, CEO & Secretary, Nehru
Group of Institutions, Coimbatore, for their simplicity, readiness, and
supporting tendency inspired in bringing up confidence in taking ideal
steps. My sincere thanks to Dr. P. Maniiarasan, Principal, Nehru Institute
of Engineering and Technology, T. M. Palayam, Coimbatore, for giving
me the privilege and honor to present the technical works beyond my
administration and providing invaluable guidance throughout this work.
IwouldalsoliketothankR.Udendhran,DepartmentofComputerScience,
Bharathidasan University, Trichy, India, a great friend of mine with empa-
thy, dynamism, support, and motivation, who deeply inspired me. I extend
my heartfelt thanks to the faculty of Department of Computer Science and
Engineering,NehruInstituteofEngineeringandTechnology,T.M.Palayam,
Coimbatore, for their acceptance and patience in sharing work during my
preparation, and to my family for their kindness, support, and care.
A. Suresh
First and foremost, I want to offer this endeavor to God Almighty for the
wisdom, strength, peace of mind, and good health He bestowed upon me
and helped me in finishing this book. I would like to express my deepest
gratitude to John Wyzalek, Senior Acquisitions Editor, CRC Press/Taylor
& Francis Group, who motivated me to prepare the book contents and
accepted to publish this book. I express my hearty thankfulness to him.
I would like to express my sincere and heartfelt gratitude to the insti-
tution concerns of Vel Tech Rangarajan Dr. Sagunthala R&D Institute
of Science and Technology for providing an immense support in all my
endeavors. I take this opportunity to extend my gratitude toward my fam-
ily for their valuable guidance and continuous support at different stages
from the very beginning to completion of this book. Finally, I sincerely
convey my appreciation to everyone on the editing, proofreading, and
publishing team of CRC Press.
Malarvizhi Nandagopal
22. xviii • Acknowledgments
I solemnly submit here my profound gratitude to my managers, Anish
Shah and Kiran Thomas, the President at Reliance Industries Limited,
Bombay, for their moral support. I also appreciate my former manager,
Sreekrishnan Venkateswaran, distinguished engineer (DE), IBM Cloud,
for all the enchanting technical discussions. I appreciate my colleagues,
Senthil Arunachalam and Vidya Hungud, for their cooperation.
At this moment, I reflect the selfless sacrifices of my parents during my
formative days. I thank my wife, Sweetlin Reena, and my sons, Darren
Samuel and Darresh Bernie, for their extreme patience. Above all, I give
all the glory and honor to my Lord and Savior, Jesus Christ, for grant-
ing the physical strength and the knowledge required toward contributing
something for this book.
Pethuru Raj
At first, I would like to thank Almighty God, the author of knowledge and
wisdom, who made this possible. I avail this opportunity to extend sincere
thanks to my management, Rajagiri School of Engineering & Technology,
Kochi, for the support rendered in completing this book. I remain thank-
ful to all my friends and persons who helped me in different ways directly
or indirectly at different stages of my work.
I would fail in my duty if I fall short of words to express my gratitude to
my parents, Valsa Abi and I. Abi, for all the unconditional love and amaz-
ingchancestheyhavegivenmeovertheyears.Iwishtoexpressmyloveand
affection to my son, Joel John, for his kind patience and encouragement.
E. A. Neeba
I express my sincere gratitude to all coauthors of this book for their big
contribution in this book. In addition, I also thank the reviewers and edi-
tors for their valuable comments and suggestions to publish this book.
Jenn-Wei Lin
23. xix
About the Authors
A. Suresh, B.E., M. Tech., Ph.D.,
is Professor and
Head at the Department of Computer Science and
Engineering, Nehru Institute of Engineering
Technology, Coimbatore, Tamil Nadu, India. He
has nearly two decades of experience in teach-
ing and his areas of specializations are Data
Mining, Artificial Intelligence, Image Processing,
Multimedia, and System Software. He has two
patents and published 85 papers in international journals. He has writ-
ten five chapters in the book, An Intelligent Grid Network Based on Cloud
Computing Infrastructures, published by IGI Global Publisher. He has pub-
lished more than 40 papers in national and international conferences. He
has served as an editor/reviewer for Springer, Elsevier, Wiley, Inderscience
journals, etc. He is a member of ISTE, MCSI, IACSIT, IAENG, MCSTA,
and Global Member of the Internet Society (ISOC). He has organized sev-
eral National Workshop, Conferences, and Technical Events. He is regu-
larly invited to deliver lectures in various programs for imparting skills in
research methodology to students and research scholars. He has authored
fourbooks,DataStructuresAlgorithms,ComputerProgramming,Problem
Solving, and Python Programming and Programming in “C” published by
DD Publications, Excel Publications, and Sri Maruthi Publisher, Chennai,
respectively. He has hosted two special sessions for IEEE-sponsored con-
ferences in Osaka, Japan, and Thailand.
E-mail: [email protected]
Malarvizhi Nandagopal, B.E., M.E., Ph.D.,
is Professor at the Department of Computer
Science and Engineering, Vel Tech Rangarajan
Dr. Sagunthala RD Institute of Science and
Technology, Chennai, Tamil Nadu, India. She
has more than 18 years of teaching experience.
She has written a book, Computer Architecture
and Organization, published by Eswar Press,
24. xx • About the Authors
The Science and Technology Book Publisher, Chennai. She serves as a
reviewer for many reputed journals. She has published numerous papers
in International Conferences and Journals. Her area of interest includes
Parallel and Distributed Computing, Grid Computing, Cloud Computing,
Big Data Analytics, Internet of Things, Computer Architecture, and
Operating Systems. She is a life member of Computer Society of India
(CSI), Indian Society for Technical Education (ISTE), IARCS, and IAENG.
She is a Senior Member of IEEE and IEEE Women in Engineering (WIE).
She is a member of Association for Computing Machinery (ACM) and the
Institution of Engineering and Technology (IET).
E-mail: [email protected]
Pethuru Raj, Ph.D.,
is the Chief Architect at
the Site Reliability Engineering (SRE) Center
of Excellence, Reliance Infocomm, Ltd. (RIL),
Bangalore. He previously worked as a Cloud
Infrastructure Architect in the IBM Global
Cloud Center of Excellence (CoE), IBM India
Bangalore for 4 years. Prior to that, he had a long
stint as TOGAF (The Open Group Architecture
Framework)-certified Enterprise Architecture
(EA) Consultant in Wipro Consulting Services (WCS) Division. He also
worked as a Lead Architect in the corporate research (CR) division of
Robert Bosch, Bangalore. In total, he has gained more than 17 years of
IT industry experience and 8 years of research experience. He obtained
his Ph.D. through the CSIR-sponsored Ph.D. degree program in Anna
University, Chennai, and continued the UGC-sponsored postdoctoral
research in the Department of Computer Science and Automation, Indian
Institute of Science, Bangalore. Thereafter, he was granted a couple of inter-
national research fellowships (JSPS and JST) to work as a research scientist
for 3.5 years in two leading Japanese universities. Regarding publications,
he has more than 30 research papers in peer-reviewed journals published
by IEEE, ACM, Springer-Verlag, Inderscience, etc. He has authored seven
books thus far and focuses on some of the emerging technologies, such
as IoT, Cognitive Analytics, Blockchain, Digital Twin, Docker-Enabled
Containerization, Data Science, Microservices Architecture, etc. He has
contributed 25 book chapters thus far for various technology books edited
by highly acclaimed and accomplished professors and professionals.
He released his first book, Cloud Enterprise Architecture, in 2012, pub-
lished by CRC Press, USA, and the book details can also be found at the
25. About the Authors • xxi
following link: https://crcpress.com/9781466502321. He has edited and
authored a book, Cloud Infrastructures for Big Data Analytics, published
by IGI International, USA, in March 2014. A new book, Smarter Cities:
The Enabling Technologies and Tools, by CRC Press, USA, hit the market in
June 2015. He collaborated with a few authors to write a book titled High-
Performance Big Data Analytics, published by Springer-Verlag, in 2015.
E-mail: [email protected]
E. A. Neeba, M.Tech, Ph.D.,
is an Assistant
Professor at the Department of Information
Technology, Rajagiri School of Engineering
Technology, Kochi, Kerala, which is affiliated to
the A. P. J. Abdul Kalam Technological University,
Kerala. She received her doctoral degree from
the Vel Tech Rangarajan Dr. Sagunthala RD
Institute of Science and Technology, Chennai,
Tamil Nadu. She completed her masters in Computer Science
Engineering from SRM Institute of Science and Technology, Chennai.
Her research interests include Analysis of Data, Data Mining and Big
Data, Knowledge Representation, and Ontology, both from the theoreti-
cal perspective and their application to natural language understand-
ing, reasoning, information visualization, and interoperability. Having a
rich industrial experience of around 10 years prior to joining academia,
she also has publications in around 10 SCI/SCIE/Scopus indexed inter-
national journals and a few national journals. An active participant in
various conferences and workshops on data mining, she is currently
involved in several projects in this field. She was entrusted with lead-
ership positions such as the Accreditation Coordinator for the college
and Head of the Quality Cell besides organizing various national and
international events.
E-mail: [email protected]
Jenn-Wei Lin, Ph.D.,
is a Full Professor at the
Department of Computer Science and Information
Engineering, Fu Jen Catholic University, Taiwan.
He received his M.S. degree in Computer and
Information Science from National Chiao Tung
University, Hsinchu, Taiwan, in 1993, and his Ph.D.
degree in Electrical Engineering from National
26. xxii • About the Authors
Taiwan University, Taipei, Taiwan, in 1999. He was a Researcher with
Chunghwa Telecom Co., Ltd., Taoyuan, Taiwan, from 1993 to 2001. His
current research interests include Cloud Computing, Mobile Computing
and Networks, Distributed Systems, and Fault-Tolerant Computing.
E-Mail: [email protected]
27. 1
1
The Internet of Things (IoT)
Paradigm: The Use Cases
1.1 INTRODUCTION TO INTERNET OF THINGS
Internet of Things (IoT) is the interconnection of networks along
with sensors for the transmission of recorded data from the environ-
ment to the user. It is stated that the innovations in IoT are accepted
and it is evolving at a rapid speed, which helps in reducing the work-
force and increasing the productivity in many real-time applications
(Karthikeyan et al 2019). Industry professionals and academicians are
continuously looking out for proper use, company, and scientific cases
in order to assertively and clearly proclaim the transformational power
of the IoT concept to the larger viewers of global end-users, engineers,
executives, and entrepreneurs (Chan 2015). IoT architecture is given
in Figure 1.1.
1.1.1 Digitized Entities
With the quicker firmness and development of edge and digitization
technologies such as sensors, actuators, chips, controllers, tags, bea-
cons, codes, stickers, LEDs, specks, smart dust, etc., all our electrical,
mechanical, and physical systems become systematically digitized to join
the mainstream computing. Additionally, these digitized items are inte-
grated with cloud-related applications, services, and data sources in order
to be adequately active and reactive. All sorts of digitized entities and
elements individually as well as collectively are thus enabled to become
active, sensitive, responsive, perceptive, receptive, communicative, and
computational.
28. 2 • Industrial IoT Application Architectures and Use Cases
1.1.1.1 Connected Devices
Wearables devices, smart-phones, digital assistants, tablets manufactur-
ing equipment, medical instruments, robots, drones and defense equip-
ment, and home appliances are connected through communication and
data transmission protocols. Also, these ground-level devices are getting
linked up with remotely held applications and data sources in order to be
sharp in their events and reactions.
1.1.1.2 Cloud Services
Infrastructure, platform, and software are the most familiar cloud ser-
vices that are provided by the cloud service provider. In IoT, as the data
are recorded continuously from the sensors, the recorded data will be
stored in the cloud. Typically, the service depends upon the sensors and
the user’s requirements. If the user is using smart home appliances,
then the user needs data storage and retrieval as a cloud service require-
ment (Yousefpour et al 2019). The flow in the cloud services is shown
in Figure 1.2.
1.1.1.3 Edge/Fog Device Clouds
1.1.1.3.1 Edge Computing
It is the distributed computing, where it gets the IoT data closer to the user
by using the edge devices.
FIGURE 1.1
IoT architecture.
29. The Internet of Things (IoT) Paradigm • 3
The two main objectives of edge computing are
1. Decrease in latency
2. Faster retrieval of data
Also, in order to eliminate the heterogeneity-induced complexities, con-
tainerization, micro services, container orchestration platforms, and service
mesh solutions are collectively contributing immensely. Device-to-Device
(D2D) integration frameworks, Device-to-Cloud (D2C) integration bro-
kers, device middle-ware products, brokers, gateways, etc., are emerging in
order to speed up the process of setting up and sustaining edge clouds. The
main motivations for the unprecedented success of the edge cloud phenom-
enon are real-time data capture, processing, decision-making, and action.
1.1.1.3.2 Fog Computing
It is one of the decentralized computing where it acts as the intermediate
layer between the cloud and the user environment. The recorded IoT data
FIGURE 1.2
Cloud/Edge/Fog computing.
30. 4 • Industrial IoT Application Architectures and Use Cases
will be stored in the cloud as well as fog that enables the user to access the
IoT data faster.
The two main objectives of fog computing are to
1. Increase the efficiency
2. Reduce the size of data to the cloud
1.1.2 IoT Analytics
The collaborations and correlations are bound to generate a lot of multi-
structured and massive amount of data. With the steady arrival of path-
breaking algorithms and analytics platforms, big and real-time data
analytics are greatly simplified and speeded up. Data analytics are to
extricate timely and actionable insights out of all sorts of IoT data. These
acquired and aggregated insights can be looped back to IoT systems and
applications in order to exhibit adaptive behavior (Raj and Lin 2019). That
is, data-driven insights empower devices and software to behave in an
intelligent fashion. As IoT data hides a variety of usable patterns, associa-
tions, tips, information, knowledge, etc., it is mandatory to collect every
bit of IoT data with care and clarity.
1.1.3 IoT Applications
Thus, as the number of heterogeneous IoT devices is steadily growing,
correspondingly the IoT data size is seeing an exponential growth. IoT
applications are going to be hugely adaptive and adroit in their functions.
Most of the IoT applications are to target and fulfill people empowerment.
Individuals and innovators are going to be benefited immensely with all
the advancements happening silently in the IoT space.
1.2 THE REASON WHY IoT IS STRATEGICALLY SOUND
1.2.1 IoT Leads to Smarter Computing
Cognition-enabled equipment and professional systems will become
our casual and compact companions. Arrays of smarter systems will
be bound to sustain us in our classrooms, homes, coffee shops, motels,
31. The Internet of Things (IoT) Paradigm • 5
offices, airports, gyms, and meeting points in big numbers. They will flaw-
lessly attach, work together, and associate to understand mind, public and
physical needs, and transport them in an extremely low-profile, safe, and
relaxed style. It is nothing but the appropriate data, and correct services
will be conceived, constructed, and sent to the required person at right
time in the specified place.
1.2.2 IoT Delivers Smarter Environments
Packages, articles, and furnishings have become dominant by the compu-
tation and communication components by required electronics that are
embedded into them (Neeba et al 2019).
1.2.3 IoT Prescribes the Shift toward People in IT
IT experts describe that there will be a huge and impulsive combination
of daily technologies to make a technology cluster to accomplish society
needs as well as professional requirements immediately. It is the place that
gives the likelihood of the clear integration of minds with machines.
1.3 THE PROMINENT IoT REALIZATION TECHNOLOGIES
Many technologies are evolving every day, but only certain technologies
are able to make an impact continuously. A few technologies have shown
their strengths, providing innovation in business, transformation, and
disruption.
• Knowledge Engineering and Enhancement
Data are converted to information and then to transition of knowledge
by using event processing engines, dissemination, processing, knowl-
edge correlation, knowledge, analytics, and discovery data mining.
• Interfacing
Natural, adaptive, intuitive, and informative interfaces
• Real-time Insights
Through in-memory computing and in-database analytics, appli-
ances are used for real-time processing of IoT big data (Feldman
et al 2012).
32. 6 • Industrial IoT Application Architectures and Use Cases
• Computing Paradigms
Paradigms such as mobile, autonomic, grid, social, service, on-
demand, cloud, fog, and edge computing.
• Digitization Edge Technologies
LED, specks, implantable, wearable, portables beacons, chips, micro-
controllers, tags, stickers, smart dust, motes, and invisible sensors
(Raj and Raman 2015).
• Sensing, Perception, and Vision
One of the most needed things for establishing IoT environment, i.e.,
miniaturization contains micro- and nano-scale electronics product.
• Communication
Ambient, autonomic, and unified communication models provid-
ing standards-compliant 3G and other generation communication
capabilities.
• Context-Aware Computing
Vision, perception, ubiquitous sensing, and edge or fog clouds are
considered to be context-aware computing.
• Middleware Solutions
It consists of fusion, intermediate, arbitration, federation, enrich-
ment, transformation, integration, and composition mechanism.
• Compartmentalization through Virtualization and Containerization
One of the software engineering methods called divide and conquer
is used on hardware to achieve flexibility and extensibility.
1.4 THE IoT: THE KEY APPLICATION DOMAINS
The applications of IoT are not limited to any single category, as it can
implement in any form of appliances as per the requirement (Gubbi et al
2013). The end applications in all the developments in the IoT space area
are intelligent workspaces and smarter environments such as smarter
homes (Ferretti and Schiavone 2016).
The prominent components included in any IoT environment are elec-
trical, mechanical, physical, and electronics embedded with smart labels,
barcodes, LED lights, beacons, and pads (Bok 2016).
• New Business Possibilities
The IoT-inspired era produces continuous and dominant force on
industry and how it can run. The IoT idea improves business to
38. This ebook is for the use of anyone anywhere in the United States
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you are located before using this eBook.
Title: The Railroad Problem
Author: Edward Hungerford
Release date: July 2, 2012 [eBook #40125]
Most recently updated: October 23, 2024
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*** START OF THE PROJECT GUTENBERG EBOOK THE RAILROAD
PROBLEM ***
39. The Project Gutenberg eBook, The Railroad Problem, by Edward
Hungerford
Note: Images of the original pages are available through Internet
Archive. See
http://archive.org/details/railroadproblem00hungrich
THE RAILROAD PROBLEM
40. Larger Image
Courtesy of the Chicago, Milwaukee, and St. Paul Railway.
An interesting illustration of rail-power development. Notice the
evolution of the crude steam engine of
1848 into the giant locomotive of 1913, which in turn is
overshadowed by the later arrival—electricity.
41. Courtesy of the C. M. St. P. Railway.
Steam, the giant power, which, by welding our states together with
bands
of steel, has been a mighty factor in the unifying of the nation.
The
Railroad Problem
42. By
Edward Hungerford
Author of “The Modern Railroad,” etc.
Illustrated
Chicago
A. C. McClurg Co.
1917
Copyright
A. C. McClurg Co.
1917
Published April, 1917
W. F. HALL PRINTING COMPANY, CHICAGO
43. I
To
An Old Friend, and a Good One
Samuel O. Dunn
Acknowledgment
WISH to express my indebtedness to
the editors of Collier’s, Every Week,
and the Saturday Evening Post for their
very gracious permission to use, as
portions of this book, parts of my articles
which have appeared recently in their
publications. To Mr. E. W. McKenna of
New York is due a special word of
appreciation for his helpfulness in the
preparation of this book.
E. H.
Contents
CHAPTER PAGE
44. I The Sick Man of American Business 1
II The Plight of the Railroad 5
III Organized Labor—The Engineer 30
IV Organized Labor—The Conductor 45
V Unorganized Labor—The Man with the Shovel 62
VI Unorganized Labor—The Station Agent 77
VII The Labor Plight of the Railroad 90
VIII The Opportunity of the Railroad 105
IX The Iron Horse and the Gas Buggy 134
X More Railroad Opportunity 158
XI The Railroad and National Defense 181
XII The Necessity of the Railroad 217
XIII Regulation 235
Index 261
Illustrations
PAGE
Illustration of rail-power development Frontispiece
The engineer 34
The knight of the ticket punch 54
The section gang 66
The station agent 82
45. The Pennsylvania’s electric suburban zone 114
Electricity into its own 114
The Olympian 130
Ore trains hauled by electricity 130
The motor-car upon the steel highway 152
The adaptable motor-tractor 152
When freight is on the move 158
The Bush Terminal 166
Freight terminal warehouse at Rochester 166
The railroad in the Civil War 182
The railroad “doing its bit” 186
America’s “vital area” 196
Rock Island government bridge 206
Railroad outline map of the United States 216
The Royal Gorge 244
ERRATUM
The word “telephone” on page 182, line 2, should read “telegraph.”
47. O
CHAPTER I
THE SICK MAN OF AMERICAN BUSINESS
N a certain estate there dwells a large family of brothers and
sisters. There are many of them and there is great variety in
their ages. They are indifferent to their neighbors; they deem
themselves quite self-sufficient. But, for the most part they are an
industrious family. They are a family of growing wealth—in fact, in
every material sense they may already be called rich. And their great
estate is slowly beginning to reach its full development.
In this family there are several older brothers who long since
attained a strength and dominance over some of the younger
members of the family. It is one of these brothers about whom this
book is written. It does not assume to be a story of his life. That
story has been told by abler pens. It merely aims to be a brief recital
of his present condition. For, truth to tell, this older brother has
come upon hard times. After a long life of hard work, at a time when
his service should be of greatest value to the estate, he has broken
down. He has begun to fail—and in an hour when the greedy
neighbors grow contentious and he may be of greatest service to his
own big family.
The Railroad is the great sick man of the American business family.
He is a very sick man. Doctors may disagree as to the cause,
sometimes as to the nature, of his ailment; they may quarrel even
as to the remedies they deem necessary for his recovery. But there
is no question to the fact that he is ill. Just at this time, owing to the
extraordinary and abnormal prosperity that has come to the United
States, largely because of the great war in Europe, he has rallied
48. temporarily. But his illness continues, far too deep-seated to be
thrown off in a moment. And the recent extraordinary legislation
passed by Congress has done nothing to alleviate the condition of
the sufferer. On the contrary, it has been a great aggravation.
I make no pretense as a doctor. But in the course of ten years of
study of our American railroads certain conditions have forced
themselves upon my attention—time and time again. I have had the
opportunity to see the difficulties under which the railroads labor and
some of the difficulties which the railroads have carved for
themselves. I have had the chance to see how a mass of
transportation legislation has acted and reacted upon these great
properties. I have known and talked with their employees—of every
station. And I have made up my own mind as to the great
opportunity that still awaits the railroad in America. For I am firmly
convinced that the great transportation organism of the United
States has but scratched the surface of its usefulness. It is this last
phase of the railroad that is, or should be, of greatest interest to
every American.
Within the short space of the pages of this book, I am going to try
to show first the financial plight that has overtaken the overland
carriers of our country. I am less of a financier than physician. But
the figures upon which my premises are builded have been obtained
by a veteran railroader; they have been carefully checked by expert
auditors and railroad statisticians, and as such they may be called
fundamental.
Given first the financial and the physical plight of our railroads as it
exists today, we shall come to another great phase of its weakness—
the labor question. Partly because of a disposition to put off the real
solution of this problem to a later and apparently easier day, and
partly because of conditions over which the railroads have had no
control whatsoever, this problem has grown from one of
transportation to one of politics—politics of the most vexed and
complicated sort. We shall look at this labor question from the most
engrossing angle—the human one—and we shall try to look upon it
49. from the economic and financial angle as well. And we shall reserve
our real opinion as to its solution until we have had the opportunity
to look from the depressing picture of the railroad of today to the
picture—by no means conceived in entire fancy—of the railroad of
tomorrow.
Upon that second picture we shall build our opinion as to the present
necessities of the railroads. Because, in my own mind, it is only as
the railroad seeks opportunity, as it seeks to enlarge its vision, that it
will be given the chance to live as a privately owned and managed
institution. It is today close to the parting of the ways, and the men
who control it have come now to the point where they will have to
choose—the one path or the other. It will no longer be possible to
delay the decision of a really vital economic question to a later, and
an easier, day.
Around the bedside of this sick man of our great estate are gathered
the physicians and the nurses. They are a motley lot. One of the
nurses is called Labor, and at first thought you will think him well
worth watching. Another nurse is more appealing at first sight. She
is a slender spirituelle thing. We call her Regulation. Perhaps she is
worth watching, too. Perhaps her ways should be mended. She is
not bad at heart; oh, no! but she has had bad advisers. Of that you
may be sure—at the beginning.
And it is quite certain that until she does mend her manners, until
Labor, the other nurse, does likewise, the caller who stands around
the corner will not come in the sick room. The invalid constantly calls
for him. The man around the corner is known as Capital. He holds a
golden purse. But you may be quite sure that he will not come to
the sick man and thrust the purse within his fingers until both Labor
and Regulation have changed their manners.
There are no two sides to such an argument.
50. With which statement let us turn from parables and toward plainer
speaking. Let us begin consideration of the plight of the railroad.
51. R
CHAPTER II
THE PLIGHT OF THE RAILROAD
EMEMBER that the Railroad is the big man in the American
business family, the very head of the house, you may say. Sick or
well, he dominates his brothers—even that cool, calculating fellow
whom we delight to call “the Banking Interests.” All America pays toll
to transportation. And, inasmuch as the steam railroads are its
dominating form of transportation, the entire country hangs upon
them. In the long run this country can prosper only when its
railroads prosper.
Do you wish to dispute them? Before the facts your contention will
not hold very long. According to the last census more than
1,700,000 persons were directly employed upon the steam railroads
of the United States; some 2,400,000 in industries bearing directly
upon the railroads—lumber, car and locomotive building, iron and
steel production, and the mining of coal. It is a goodly number of
folk whose livelihood, or a large portion of it, comes from an indirect
relation to the railroad. It has been said, with a large degree of
statistical accuracy, that one person in every ten in the United States
derives his or her living from the railroad.
Perhaps you are not one of this great family of 10,500,000 persons—
more folk than dwell in the great state of New York, including the
second largest city upon the face of the world. Granted this—then
probably you are one of the 10,000,000 savings-bank depositors in
the United States. If you are, you are an indirect holder of railroad
securities. The savings-banks of this country have many, many
million dollars of their savings invested in railroad bonds. If you have
52. not even a savings-bank account let me assume that you have a life-
insurance policy; there are three life-insurance policy-holders for
every savings-bank depositor. The value of every one of those
34,000,000 policies depends on the wealth that is locked up within
the strong boxes of the life-insurance companies. And a very great
proportion of that wealth is expressed in the stocks and bonds of
railroad companies.
Try as you may, you cannot escape the dominance of the railroad in
financial and industrial America. You might have neither savings-
bank account nor insurance policy of any sort, yet the railroad would
touch you constantly, through both your income and your outgo. If
you were a city man, it would touch you not only in the prices that
you pay for milk and meat and vegetables, but for the rent of your
house or apartment. As I write, the entire East is panic-stricken for
fear of a coal famine, faces steadily rising prices. The production at
the mines, despite a scarcity of labor, has not been far from normal.
But the railroad has failed in its part of the problem—the providing
of sufficient cars to transport the coal from the mines to the
consumer. It has been hard put to find cars to move the munitions of
war from the interior to the seaboard towns. And the coal mines,
because of the lack of railroad cars, have been unable to relieve the
situation. So panic has resulted. Upon its heels have come similar, if
somewhat lesser panics over the congestion and lack of delivery of
foodstuffs—conditions which have been reflected in rises in the
prices, if not in the value of most foods. These prices already have
reached higher figures than at any time since the Civil War. Today
they are nearly even with those which prevailed during the dark days
of the sixties. And even if they are due directly to crop shortages
and abnormal exports they still are a reflex of the railroad’s intimate
touch with every man, woman, and child all the way across the land.
Sitting on the porch of his home at dusk, the farmer looks out over
his broad acres, sees the great industrial aids that American
invention has given him for the growing and the harvesting of his
crops and forgets, perhaps, that on each of these mechanical
53. devices he has paid a toll to the railroad. But when he looks to his
wheatlands he must recall that it is the railroad that carries forth
their crops—not only to the cities and towns of the United States,
but to the bread-hungry land, far overseas. In those markets he
competes with the wheat from lands so far distant that they seem
like mere names wrenched from the pages of the geography book—
Argentina, India, Australia. Because of this alone, it is nationally
important that the steel highways which lead from our seaport
gateways inland to the wheat and corn fields be kept healthy and
efficient. They have become integral parts of that broad national
policy which says that the United States is no longer isolated or
insular but one of the mighty company of world nations.
Will you permit me for a moment to enlarge upon this point—this
competition between our farmer of the West and the farmer of the
Argentine Republic, of India, of Australia, and of the nations of the
Baltic Sea in the market of the consuming nations of the world? As
the wheat fields of each of these nations are nearer tidewater than
the wheat fields of the United States, it long ago became necessary
for our railroads to lower the transportation rate for grain in order
that the American farmer might not become submerged in this great
international competition. That this has been done, a single
illustration will show:
A bushel of wheat today is transported from the center of the great
granary country of our Northwest or Southwest to tidewater—an
average distance of 1,700 miles—for 27 cents. This is at the rate of
.53 of a cent—a minute fraction over half a cent—per ton-mile. The
average ton-mile rate in Great Britain, 2.30 cents, as applied to our
average grain haul in the United States of 1,700 miles, would make
the transportation cost of American wheat four and one-half times as
much, or $1.21. The American farmer owes a far greater debt to the
railroad than he sometimes may believe. He may have suffered
under the oppressions and injustices of badly managed roads—may
yet be smarting from these oppressions and injustices. But how
much greater would be the oppression and injustice of a high grain
54. rate such as I have just shown? And if such a rate were imposed
upon him, would he be able in an average year to grow wheat at a
profit, to say nothing of being able to compete with it in the broad
markets of the entire world?
A minute ago and we were speaking of the abnormal prosperity of
the railroads. The flood first descended in October, 1915. It rapidly
mounted in volume. The railroads declared embargoes, first against
this class of freight and then against that. Solicitation ceased. The
bright young men of their traffic forces were set to work helping the
overworked operating departments, tracing lost cars and the like.
The backs of their operating departments were all but broken. I
myself saw last winter on the railroads for a hundred miles out of
Pittsburgh long lines of freight cars laden with war munitions and
other freight making their slow and tedious ways toward tidewater. I
saw Bridgeport a nightmare, the railroad yards of every other
Connecticut town, congested almost overnight, it seemed. The New
York terminals were even worse. For a long time it seemed as if
relief might never reach them.
It seemed wonderful, but it was not. It seemed like millions in
railroad earnings, but it was not. Translated into the unfeeling
barometage of percentages it all represented but five and one-half
per cent on the actual value of the railroads of the United States.
And that, compared with the long season of lean years that had
gone before, was as nothing.
Take the season of years from 1907 to 1914—a season for which the
statistical records are now complete. Despite the great financial
panic of 1907, these were, in some lines of business, mighty
prosperous years. The output of automobiles was to be measured
not in hours but in the very fractions of minutes. You might figure
the earnings of the “movies” well into the millions each
twelvemonth; they were building new theaters in all the cities and
55. the bigger towns, almost overnight it seemed. Manufacturing and
selling, nationally speaking, were up to the average. Yet in those
very years, it was necessary for some of our very best railroads—the
best operated and the best financed, if you please—to dip into their
previously accumulated assets to pay the dividends which they had
promised to their stockholders, in several cases to either lower or
omit dividends. And some of the best of these were also compelled
to pinch their maintenance expenses to a point that brought them
close to the safety line in operation, or even beyond it.
And what of the weaker roads—the roads upon which whole
communities, whole states, if you please, are frequently absolutely
dependent? What did these roads do in such an emergency? The
record speaks for itself. The best of these second-class railroads
made no secret of the fact that they were cutting down on
maintenance in order to pay their dividends or the interest upon
their mortgage bonds. The worst of them simply marched down the
highway to bankruptcy. At no time in the history of this country has
as much of its railroad mileage been in the hands of receivers as
today.
If you are in that glorious company of self-appointed patriots who
violently proclaim themselves at every possible opportunity “anti-
railroad,” you may be asking me now why so many of our roads
have entered bankruptcy. You may be asking me if it is not due in
some cases to bad location, and in others to inefficient or dishonest
management. I shall reply to you by saying that perhaps fifty per
cent of the railroads which are in bankruptcy today are there
because they never should have been constructed in the first place
and because of the financial management. The lack of judgment,
ofttimes the sinister motives that brought them into being are now
being paid for and paid for dearly. And in the second place, I will
take no issue with you as to either carelessness or dishonesty in
management of some of our railroads.
“Why is it that every investigation of a railroad nowadays shows
such a rotten condition throughout its affairs?” asked a distinguished
56. economist at a dinner in Chicago last winter.
E. P. Ripley, the veteran president of the Santa Fé, answered that
question.
“It is because a road is never investigated until it is morally certain
that its affairs are rotten,” said he, and then told how but one or two
rotten apples would send their foul odors through an entire barrel
and so seemingly contaminate its entire contents. Would you
blacken a whole company because a few of its members have erred?
Take another instance. A club for a while shelters a genuine
blackleg. Are we to say that, because of this mere fact, its other
members are not as good as any of us? So it is with the railroads.
You cannot point even the finger of suspicion to such properties as
the Santa Fé, the Burlington, the Pennsylvania, the North Western,
or the Baltimore and Ohio railroads—to mention a few out of many,
many instances. These are good roads; in some instances because
they have been extraordinarily well located, but in most instances
because of their continuous enlightened management. Yet some of
them have been hard put to it of late to maintain their dividend
obligations to their stockholders. And many roads have been
compelled to lower or else suspend entirely the dividends paid in the
years gone before.
“How about efficiency?” you may interject.
You are not the first to ask that question. It was asked several years
ago by a distinguished citizen of Boston—Louis D. Brandeis, now a
justice of the Supreme Court at Washington. In the course of a rate
hearing in which he appeared as counsel, Brandeis asked the
question, then answered it himself.
“I could save the railroads of the United States a million dollars a
day, by applying the principles of modern efficiency to their
operations,” was his quiet answer to his own interrogation.
57. The remark was a distinct shock to the railroad executives, to put it
mildly. Some of them were angered by it. The wiser ones, however,
went home and sent their secretaries scurrying out after all the
books on the then new science of efficiency that could be found.
The more they studied efficiency the less these wise men were
inclined to anger against Brandeis. Some of them found that they
had been practicing efficiency on their properties for a long time
past—only they had not known it by that name. They had been
rebuilding whole divisions of their lines, relocating and
reconstructing them so as to lower grades and iron out curves—all to
the ultimate of a more economical operation of their roads. A
bettered railroad means invariably a cheaper one to operate. The
saving in grades and curves—no matter what may be the initial cost
—means a more than proportionate saving in fuel cost, as well as in
wear and tear upon the track and cars.
Remember, if you will, that one of the biggest things that efficiency
spells is economy. And economy is always a popular virtue in
railroading, particularly among those gentlemen whose only interest
in the railroads arises from the fact that they own them. If greater
efficiency meant greater economy—well, perhaps it was just as well
that that smart attorney from Boston made his remark at the rate
hearing, only perhaps he might have phrased it in a little less violent
fashion.
That is why a man like Daniel Willard, the remarkably efficient
president of the Baltimore and Ohio Railroad—the man who has
done so much toward rehabilitating that one-time minstrel-show
joke into one of the best railroad properties in the United States—
spent days and nights reading every scrap about efficiency that
could be brought to his attention, why he brought Harrington
Emerson, one of the best-known of the efficiency experts into his
own offices and staff, why, beginning with his great car and engine
repair and construction shops, he is gradually extending the
principles of modern scientific efficiency to every corner of the
railroad which he heads. Willard’s example has been followed by
58. other railroad executives. And it is because of these and other
efficiency principles that the best of our railroads have been enabled
to crawl through the hard years of the past decade, without going
into bankruptcy.
It is a gloomy record—these lean years in Egypt. They came
succeeding a decade of apparent prosperity for most of the
railroads. I say “apparent” advisedly. For, when you get well under
the surface of things, you will find that even the first six or seven
years of the present century were not genuinely prosperous for the
overland carriers. Dip into statistics for a moment. They are dry and
generally uninteresting things but nevertheless they are the straws
which will show the way the wind is blowing. Look at these:
In 1901 the net capitalization of our railroads was, in round figures,
$11,700,000,000. Six years later, or at the end of the greatest period
of material prosperity that the United States has ever known, this
capitalization had increased to $16,100,000,000—approximately
thirty-seven per cent.
A great deal has been written about railroad capitalization—a great
deal without knowledge of the real facts in the case, and a great
deal more with knowledge but also with malicious intent. These
figures speak for themselves. Translated, they represent the
expenditures of the railroads for permanent improvements and
expansions during that busy seven-year period. At first glance an
expenditure of more than $4,000,000,000 is staggering. Yet what
are the facts? The facts are that hardly one of these roads expended
enough that memorable season to keep pace with the vast demands
of the freight and passenger traffic—particularly the freight—upon
them. We experienced great railroad congestions during the winters
of 1903, 1905, 1906, and 1907. And the loss to the large users of
railroad facilities because of these earlier congestions is no vague
thing; it can be figured high in the millions of dollars. And
59. furthermore it can be said that there is no period of expansion in
recent American commercial history that has not been both limited
and hampered by the lack of transportation facilities. What a
commentary this, on our so-called national efficiency!
Today we are just crossing the threshold of what seems to be an
even greater period in the industrial expansion of the nation.[1] Yet
how are our railroads prepared to meet their great problem? In
1901, as we have already seen, they met it by an expansion of their
physical facilities. But in 1901 the railroads had credit. In 1916 the
credit of many of them had become a rather doubtful matter. And
this, of course, has been a serious detriment to their expansion—to
put it mildly.
An analysis of the service, both freight and passenger, of the
railroads in the year 1907, the last of the “big years” in railroad
traffic, compared with that of 1914—the most recent year whose
figures are available—is illuminating in estimating railroad credit
today, or the lack of it. The passenger-mile—representing the
progress of one train over one mile of track—is the unit of that form
of traffic. In 1914 the total passenger-miles had increased to
35,100,000,000 from the total of 27,700,000,000 in 1907—or 25.7
per cent. Similarly the ton-mile is the unit of freight transportation.
As the name indicates, it represents the carrying of one ton of goods
of any description for a mile. In 1914 the ton-miles had grown to
288,700,000,000 from 236,600,000,000—or twenty-two per cent.
But, as the traffic grew, it was necessary that the railroad should
grow. Despite supreme difficulties in finding credit it did manage to
invest some $4,042,000,000 in property expansions and
reconstructions during the seven years from 1907 to 1914. Yet this
very money must be paid for, and, in view of the gradually impaired
credit, paid for rather generously. At five per cent, this expenditure
represents an added annual interest charge of $202,101,000 to the
60. railroads of the United States, a figure whose great size may be the
better appreciated when one realizes that it is considerably more
than half a million dollars a day.
Against this increased outgo one must measure increased revenues
for 1914 over 1907, of $452,188,000—one deals in large figures
when one speaks of the earnings and expenses of more than a
quarter of a million miles of railroad. Yet even increased earnings of
more than $400,000,000 are not so impressive when one finds that
operating expenses and taxes in 1914 were $506,888,000 higher
than in 1907. And both operating expenses and taxes are far higher
in 1916 than they were in 1914.
Hold this picture up to the light. I have begun to develop the huge
plate for you. Now study its details for yourself. An investment of
$4,000,000,000—more than ten times the cost of the Panama Canal
—produced, at the end of a seven-year cycle, increased
transportation earnings of more than $450,000,000; yet it required
$500,000,000, or an excess in a single year of more than
$50,000,000, to meet the pay-roll, material tax, and other costs of
operating the railroads. And in this figure we have not taken account
of that annual interest charge of more than half a million dollars a
day for the huge $4,000,000,000 investment fund.
That interest charge cannot be ignored. Bankers demand their pay.
Add the deficit in a single year—a normal year, if you please. Here it
is—$54,698,000 plus $202,100,000—and you have a total deficit of
$256,798,000. And this is but a single year. The years that preceded
it were no better.
The money that went to meet these deficits was provided from some
source. Where did it come from? Most of the big railroaders know.
They will tell you, without much mincing of words, that it came from
previous accumulations of surplus, or else from money withheld from
the upkeep of the physical property of the railroads. Of this last,
much more in due course. For the present moment, consider that
great $4,000,000,000 expenditure between 1908 and 1914 for
61. additions and betterments. It was none too much—not even enough
when one comes to consider it beside the great expansions in
service as represented by the showings of passenger-miles and ton-
miles. And yet today, as we shall see in due course, the railroads
stand in need of far greater development and expansion than ever
before in their history. Five or six years ago that supreme railroader,
James J. Hill, estimated that the railroads of America would need a
further expenditure of $1,100,000,000 a year upon their properties
before they would be in shape even to decently handle the traffic
that would be coming to them before the end of the present decade.
Hill was a master railroader who stood not only close to his
properties but close to the great territory which they serve. He knew
that the states of the Union which are west of the Mississippi River
had been developed to only twenty-seven per cent of their ultimate
possibilities. It would be hard to state the lack of development of the
railroads of that territory in exact percentage. It certainly would be a
figure far less than twenty-seven.
If you are a traveler at all familiar with the Middle West and the
South; if you are traveling steadily and consistently these years over
all of their rail routes, you must have been convinced of their
appalling condition. Many of their main lines are deplorable; their
branch lines are unspeakable. Branch-line service in every part of
the land has been a neglected feature of railroad opportunity—as we
shall see in due course. But in the Middle West and in the South they
are at their worst. If they do not actually cry aloud from a physical
standpoint for reconstruction, their service, or the lack of it, certainly
does. Yet the people, the communities, and the industries which are
situated upon them are entitled to a railroad service which shall
enable them to compete upon an even basis with the communities
and industries which are situated upon rich and efficiently managed
railroads. I feel that this is an economic principle to which there can
be no dissent. And I think also that there can be no dissent to the
wretched plight of many of the roads of the Middle West and the
South—more particularly the Southwest. In rough figures, the
prosperous railroads of the land, representing some forty per cent of
62. its mileage, are able to give service to their patrons; sixty per cent
are unable to render a proper service.
But even in the prosperous sections of the West—of the larger
proportion of the country—one who rides and sees and thinks
cannot fail to be impressed with another great cost, yet to come. I
am speaking of the removal of tens of thousands of highway grade
crossings, in our towns and cities and in the open country. Already a
good beginning has been made; but it is as nothing compared with
the work which remains to be done. The coming of the automobile
has hastened the necessity of the completion of this work. The
railroads have contrived many ingenious and perfected methods of
safeguarding their highway grade crossings. The best of them are
most inadequate, however.
The fact remains—a fact that must be particularly patent to you
when you ride across Michigan, or Indiana, or Illinois, or Iowa, or
any of their sister states—that here is a great and vastly expensive
work awaiting the railroads of this country. In the larger cities—New
York, Boston, Buffalo, Chicago, St. Louis, Kansas City, to name a few
striking examples—many millions have been expended in this work
within the past few decades. While the several communities—in
some instances the state treasuries—have borne a portion of these
expenditures, the burden has fallen invariably upon the backs of the
railroads. Fortunately the railroads which have succeeded in
absolutely eliminating many of their highway crossings—and, in so
doing, reducing a large part of their accident claims—have been the
wealthier roads. But that is little satisfaction to a community
unfortunate enough to be situated on the lines of a bankrupt road.
The chances are that its grade crossings, being more poorly
protected, are more dangerous.
One thing more, while we are upon this subject and are speaking
particularly of this lack of development of the railroads of the West
and of the Southwest. It is an interesting fact that there are but
three railroads—the Santa Fé, the Union Pacific, and the Southern
Pacific—which have done any considerable amount of double-
63. tracking west of the Missouri River. Yet, as we shall see when we
come to the military necessity of our railroads, it is only a double-
track railroad which is competent to handle any really considerable
volume of traffic. And it is equally true that it is more than foolish to
attempt to build or to develop any considerable mileage of branch
lines until there are double-track main stems to serve it adequately.
James J. Hill had all these things in mind when he made his definite
statement as to the financial needs of the railroads of the United
States during the present decade. And he did not need to give
consideration to the abnormal traffic which the great war has given
to our railroads. The normal development of the West, its gigantic
possibilities, were sufficient to convince that man of great vision, to
set his ready pencil at statistics.
As a matter of fact and in view of the record of these past half-dozen
years, the average well-posted railroader of today will tell you that
Hill was only conservative in his estimate. But, being even more
conservative ourselves, let us allow that, if the railroads had been
unhampered during the past decade, they would have expended as
high as $1,000,000,000 a year in permanent improvements.[2] Ten
billions instead of four! Ten billions of dollars makes dramatic
comparison even with our great trade balance that has accumulated
during the European war—the excess of exports over imports
already amounting to only a little over $3,000,000,000. And as to
what it would have meant to industrial America, poured out through
many channels, raw materials, manufactured goods, labor—it takes
no stimulated mind to imagine. The flush period into which the war
has suddenly plunged us can give a fair indication.
Now consider for a moment not the possible expansion that the
railroad might have made in the last decade and did not, and see
how it has failed in the ordinary upkeep of its property. This last
phase of its plight bears directly upon the great railroad financial
64. problem as it exists in this year of grace, 1916—the epochal year in
which the roads need to replenish their equipment; the year in
which they find the doors of the money markets, open to almost all
other forms of industrial investment, all but closed in their faces. By
equipment, I now speak in the broad sense of the word not merely
of cars and locomotives but tracks and bridges and terminals as well
—the entire physical aspect of the properties. Yet take, if you will,
the word “equipment” in its narrow and technical sense. The sense
of railroad necessity is not lessened.
The other day the Massachusetts Public Service Commission
complained that the largest of the railroads operating out of Boston
was using in its suburban service some 700 wooden passenger
coaches, varying in age from twenty-five to forty years. The railroad
did not deny that allegation. It merely said that it had no money
with which to buy modern coaches.
Its condition is typical. Week after week in the glorious autumn of
the year of grace 1916, the news columns of the commercial pages
of our morning newspapers were telling with unvarying monotony of
the shortage of freight cars as bulletined by the American Railway
Association—100,000 this week, 75,000 last, 150,000 next—who
knows? The merchant and the manufacturer know. They know in
shipments of every sort delayed; in the delays running into sizable
money losses week upon week and month upon month.
It may not be able to convince them that at the close of the fiscal
year 1914—the period upon which we are working—there were upon
the roads of the United States 2,325,647 freight cars, a number
which, although greatly added to since that date, has not yet been
made adequate for the normal traffic demands of the country.[3] And
a large proportion of these cars are both obsolete and inadequate.
In 1914, out of the 2,325,647 freight cars some 347,000 were of a
capacity of but 60,000 pounds or under—a type today considered
obsolete by the most efficient operating man. A great majority of
this latter number of cars was of all-wood construction. If the
financial condition of the railroads had permitted, they doubtless
65. would have been replaced long since with all-steel cars of far greater
carrying capacity. This situation in the freight-car equipment is
reflected in larger measure in the passenger-car and locomotive
situation. There are railroads in the United States that today are
compelled by the exigencies of a really serious situation to operate
locomotives whose very condition is a menace not only to the men
who must ride and operate them but also to the passengers in the
trains they haul. The annual number of serious delays that may be
charged to “engine failure” is appalling.[4]
Now consider “equipment” in its broader sense. Expert railroaders
will tell you that save in the case of the larger and more prosperous
roads, there has been, in the course of the past seven or eight
years, a serious depreciation in the maintenance of the way and
structure of the railroad. In the prosperous years from 1901 to 1907
a very great improvement was made in this physical feature of the
railroad. In the last of these years the American railroad reached the
highest standard of physical perfection that it has ever known.
In 1907 came the great panic. It made drastic economies
immediately necessary. The railroads in their anxiety to meet, first,
their dividends, and second, their interest obligations, pinched
maintenance to the extreme limit. This was effective in two ways: In
the first place the great preponderance of roads did not have
earnings to make ordinary improvements, nor credit to provide the
capital charge that would apply for improved rights of way, bridges,
stations, freight houses, shops, and the like. Expert track engineers
say that the loss in the maintenance of line during these lean years
in Egypt that have just passed will average at least $2,000 a mile.
Multiplied by a total of 245,000 miles of railroad line in the United
States this means that the railroads are “back” in the upkeep of their
lines alone some $491,788,000.[5]
An expert railroader of my acquaintance takes this great figure—
considerably exceeding the cost of the Panama Canal—adds to it as
representing a carefully ascertained deficiency in the replacement of
rolling stock an almost equal sum—$445,940,586. To these he
66. further adds the dividends paid by the solvent roads out of their
surpluses during the seven hard years—$784,563,406—and the
depreciation of the value of the securities of the roads in bankruptcy
during the same period—$719,528,328. The total of these four great
items is $2,441,820,320—a sum instantly comparable with that of
the national debt.
There is, however, from a bookkeeping standpoint, at least, an offset
against these losses in the equipment account of $394,736,506
which has, under a wise ruling of the Interstate Commerce
Commission, been charged to expenses during the seven years and
set up as a reserve to meet the accruing deficiency of equipment.
However, there have been no restrictions as to the maintenance of
this fund, or how it should be handled. The very prosperous lines—
representing some 100,000 miles, or less than half the total mileage
of the country—probably have their contribution to this depreciation
fund as an asset. In the case of the poorer roads—speaking
financially—it doubtless has been applied to other purposes, in order
to help them maintain their bare existence. It has come home to
these, and with great force, that the governing conditions which
make their income fixed take little cognizance of the vast annual
increases in material, in tax, and in labor costs. In rough figures—
decidedly rough, it seems to me—it has been estimated that the
losses of our railroads during the past ten years alone have
amounted to approximately one-half the entire cost of the Civil War.
That figure is impressive—it is little less than appalling.
Even with the depreciation accounts of the American railroads
deducted as an asset, we still have this awe-inspiring total of
$2,000,000,000 confronting us. Some of this—the unpaid dividends
of more than seven attenuated years—is water that will never come
to the mill again. But the neglected rights of way, the ancient
buildings, and the bridges needing rehabilitation on some of our
railroads, the locomotives and the cars travel-racked and fairly
shrieking for repairs, are all of them physical matters that must be
set right before the sick man of American business can stand firmly
67. on his feet once again. And when these things are done, the railroad
will stand physically just where it stood from eight to nine years ago.
And who can deny that it should stand nine years ahead of 1917
instead of nine years behind it?
68. S
CHAPTER III
ORGANIZED LABOR—THE ENGINEER
O much then for the physical condition of the railroad as it exists
today—the condition that constantly is being reflected in its
inability to handle the supertides of traffic that, in this memorable
winter that ushers in 1917, are coming to its sidings and to the doors
of its freight houses. Consider now the condition of its great human
factor—its relations with its employees. I am sure that you will find
this, in many ways, in quite as deplorable a condition as the track
and physical equipment. It is a condition that steadily has grown
worse, instead of better—and this despite a constant improvement in
the quality of the individual men in railroad service.
There is not an honest-speaking railroad executive all the way across
the land who cannot tell you that he would a dozen times rather
deal with the average individual railroader of today than with the
average individual railroader of, let us say, a quarter of a century
ago. With the railroader’s boss—his grand chief and any of the
smaller chiefs—well, here is a far different matter. But there has
been a steady improvement in the quality of railroaders—of every
sort and degree.
If you have traveled upon our steel pathways for twenty years or
more you must have noticed that yourself. The transition of the
rough-looking, rough-speaking, rough-thinking brakeman into the
courteous trainman comes first to my mind. And if the old-time
conductor with lantern on his arm has disappeared, there has
appeared a diplomat in his stead, a gentleman with whom we are
soon to become a little better acquainted. We still have railroad
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