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Railroad Pioneer E.H. Harriman His Aim For Perfection Helped Him Overhaul Rail Transport.(LEADERS & SUCCESS)

Investor's Business Daily

| October 01, 2001 | COPYRIGHT 2001 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: Michael Richman

To E.H. Harriman, efficiency was the name of the game. No project was too expensive if he was convinced it could save money and bring top results in the long term.

He took that approach in transforming Union Pacific Railroad into a modernized, well-integrated system that became one of the nation's largest carriers. He achieved similar results with Southern Pacific. Those rail lines, plus Illinois Central, formed the core of his empire.

Harriman's involvement with UP highlights his legacy. He bought into the bankrupt company in 1898 and became chairman of its executive committee.

With a positive focus, he set out to rebuild the line. His general premise for making money was that a rail carrier had to haul larger loads as cheaply as possible. Many businessmen understood that theory, but were reluctant to tackle it especially in the vast West, where it could be simple but costly to execute.

Harriman (1848-1909) wasn't deterred. He knew that modernizing UP's lines in the West would take a huge investment. So he avoided making hasty decisions and decided to tackle the project step by step.

First he thoroughly inspected the existing UP system, traveling 6,236 miles over 23 days through the West. The trip included a study of track, bridges, depots, outbuildings and repair shops.

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