William Newman

September 6, 1847 (age 70)

Prince William County, Virginia, United States

Newman's railroad work began in 1869 as station agent of the Texas & Pacific Railroad in Shreveport, Louisiana. In 1872 he became general freight agent of that railroad and in 1883 was appointed traffic manager of the so-called Southwestern Lines of the Missouri Pacific system. In that position he had charge of the traffic matters of the Texas & Pacific, the International & Great Northern, the Galveston, Houston & Henderson, and the Missouri, Kansas & Texas Lines in Texas and Louisiana. Two years later he was promoted to the position of traffic manager of the entire Missouri Pacific system and in 1887 was given the rank of vice-president. A shift from the Gould properties to the Chicago & Northwestern Railway came in 1889 and Marvin Hughitt, its president, invited Newman to become third vice-president (traffic) of that company. He remained there seven years and in 1896 became a lieutenant of James J. Hill in the position of second vice-president (traffic) of the Great Northern Railway. His next move was in 1898, when he was elected president of the Lake Shore & Michigan Southern, a part of the New York Central system. There he became well known to William K. Vanderbilt, then dominant in New York Central management, and in 1901 Newman became president of the New York Central system. His service in that office was terminated by resignation in 1909 but he continued as a director of the company, devoting constant attention to the construction of the Grand Central Terminal in New York City, a project developed during his presidency and one in which he was deeply interested. His death, from arteriosclerosis, occurred on August 10, 1918, at his apartment in the Hotel Biltmore, New York. Newman's reputation in railroad circles was as a traffic man. In the field of getting traffic for his railroad he displayed brilliance, measured by the standards of his time. In competitive struggles between railroads he had genius in effecting compromises in which he had the advantage of a David Harum horse-trading sense. When he became president of the New York Central the need of that system was not so much for a brilliant traffic man as for a resourceful and fearless operating man with a thoroughgoing knowledge of interdepartmental relationships and a keen sense of value and fitness in the selection of departmental heads. In these qualities Newman did not excel. Nor did he seem to understand the inadequacy in equipment and facilities. Consequently, his eight years as the executive head of that system were not productive of needed improvement in organization, morale, and service. The period, however, was a critical one, in which many new problems arose. Following the disastrous Park Avenue collision in 1902, the New York Central and the New York, New Haven & Hartford lines into New York City were forced to substitute electric traction for steam locomotives. This change involved the reconstruction of the Grand Central Terminal. The New York Central's dominant position in New York City was weakened by the Pennsylvania's construction of a tunnel and a magnificent passenger station in the heart of the city. President Mellen of the New Haven was busy with his schemes for monopolizing the transportation agencies in New England. Railroads generally were feeling the adverse effects of rising costs of labor and other operating expenses. The powers of the Interstate Commerce Commission over rates had been enlarged by the Hepburn Act of 1906 and the Commission was unsympathetic toward railroad efforts to increase rates to meet rising costs. The burdens on Newman, therefore, were severe, but his task would have been made easier and the New York Central's record at the time would have been better if Newman had had as much ability in building up a strong operating organization as he had previously shown in traffic affairs of other railroads.

William H. Newman

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railroad official

Background

William H. Newman was born on September 6, 1847 in Prince William County, Virginia, United States. He was the son of Albert and Adelaide (Fewell) Newman.

Education

Newman was educated in private schools in Kentucky.

Career

Newman's railroad work began in 1869 as station agent of the Texas & Pacific Railroad in Shreveport, Louisiana. In 1872 he became general freight agent of that railroad and in 1883 was appointed traffic manager of the so-called Southwestern Lines of the Missouri Pacific system. In that position he had charge of the traffic matters of the Texas & Pacific, the International & Great Northern, the Galveston, Houston & Henderson, and the Missouri, Kansas & Texas Lines in Texas and Louisiana. Two years later he was promoted to the position of traffic manager of the entire Missouri Pacific system and in 1887 was given the rank of vice-president. A shift from the Gould properties to the Chicago & Northwestern Railway came in 1889 and Marvin Hughitt, its president, invited Newman to become third vice-president (traffic) of that company. He remained there seven years and in 1896 became a lieutenant of James J. Hill in the position of second vice-president (traffic) of the Great Northern Railway. His next move was in 1898, when he was elected president of the Lake Shore & Michigan Southern, a part of the New York Central system. There he became well known to William K. Vanderbilt, then dominant in New York Central management, and in 1901 Newman became president of the New York Central system. His service in that office was terminated by resignation in 1909 but he continued as a director of the company, devoting constant attention to the construction of the Grand Central Terminal in New York City, a project developed during his presidency and one in which he was deeply interested.

His death, from arteriosclerosis, occurred on August 10, 1918, at his apartment in the Hotel Biltmore, New York.

Newman's reputation in railroad circles was as a traffic man. In the field of getting traffic for his railroad he displayed brilliance, measured by the standards of his time. In competitive struggles between railroads he had genius in effecting compromises in which he had the advantage of a David Harum horse-trading sense.

When he became president of the New York Central the need of that system was not so much for a brilliant traffic man as for a resourceful and fearless operating man with a thoroughgoing knowledge of interdepartmental relationships and a keen sense of value and fitness in the selection of departmental heads. In these qualities Newman did not excel. Nor did he seem to understand the inadequacy in equipment and facilities. Consequently, his eight years as the executive head of that system were not productive of needed improvement in organization, morale, and service. The period, however, was a critical one, in which many new problems arose. Following the disastrous Park Avenue collision in 1902, the New York Central and the New York, New Haven & Hartford lines into New York City were forced to substitute electric traction for steam locomotives. This change involved the reconstruction of the Grand Central Terminal. The New York Central's dominant position in New York City was weakened by the Pennsylvania's construction of a tunnel and a magnificent passenger station in the heart of the city. President Mellen of the New Haven was busy with his schemes for monopolizing the transportation agencies in New England. Railroads generally were feeling the adverse effects of rising costs of labor and other operating expenses. The powers of the Interstate Commerce Commission over rates had been enlarged by the Hepburn Act of 1906 and the Commission was unsympathetic toward railroad efforts to increase rates to meet rising costs. The burdens on Newman, therefore, were severe, but his task would have been made easier and the New York Central's record at the time would have been better if Newman had had as much ability in building up a strong operating organization as he had previously shown in traffic affairs of other railroads.

Achievements

Newman served as a founding member of the Academy of Management, President and Dean of the Fellows Group for the Academy of Management and was recognized many times for his lifetime contribution to this most influential professional organization in management.

Personality

Quotes from others about the person

"Not much given to talk, he had the quality of concentration to an unusual degree. He would approach his subject first from one point in a tentative way and feel his ground as he advanced. No man was quicker to discern the strength of opposition and none more ready to turn the subject and reorganize his forces for another line of approach, but he was tenacious to the last degree in pushing the object of the chase and would frequently tire out his opponents and make his point by nominal concessions and the clever adoption of alternatives. "

Connections

On February 18, 1874, he married Bessie Carter of Marshall, Texas; they had no children.

Father:: Albert Newman
Mother:: Adelaide (Fewell) Newman
Spouse:: Bessie Carter

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William H. Newman

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