Address delivered before the Traffic Club of New York, Saturday Evening, February 16, 1909.
Problems—both many and varied—have always confronted the railway manager. Particular problems come to the front from time to time that tax all of our resources. They differ with different periods of our history. Today one of the most serious depends more for its solution upon our lawmaking bodies, both State and national, than upon the railroad men, and for the present, at least, we must feel like the old Arkansas darky, who said he was "in the hands of an all-wise and unscrupulous Providence."
In the early days of railroads the chief problem was that of construction and equipment; later, when more railroads had been built than there was traffic to feed, there came the traffic problem, and all the abuses which followed in its train. These, in turn, led to the legislative problem accompanied by the Interstate Commerce Law of 1887, and through the '90s all sorts of problems—including bankruptcy for many. Now, within the past few years has come the great problem of enlargement—the construction period again, but in a different shape. Not experimental, for we had learned how to build and how to equip; not the building so much into new country, but to take care of the traffic which was overflowing our rails.
Events of the past year have proved the absolute necessity for almost all the large railroads in this country to enlarge their trackage, their terminals, and their equipment; and yet, here again, when in considering where to obtain the necessary funds for such purposes,—which must, of course, come from the public,—the railroad managers find themselves confronted with great difficulties. This, of course, is largely due to the tremendous demands for capital, in the development that is going on in all parts of the world, but it is increased, at the moment, by the natural timidity of capital to invest its funds in railroad securities, in view of the violent attacks that are being made against corporations through Congress and the State legislatures.
POPULAR HOSTILITY TO THE RAILROADS.
This brings us, then, to our greatest and most perplexing problem—that of how to restore a state of reciprocal understanding and fairness between the carriers and the public. Many railroad officials believe that so deep-seated is the apparent hostility of the people that the management of the railways will be taken practically out of the hands of their owners, and that great disasters are to follow. I do not share this view, principally for the reason that whatever may have been the faults in the past, the methods and practices of railroad management are now based upon a decent regard for their public responsibilities. Sooner or later the people will recognize this—as I believe they are already beginning to do. But by no means can we minimize the actual situation of today. It is, indeed, a time of great anxiety to all those entrusted with railroad management, and who have the interests of their country at heart as well.
With the old rebates and secret discriminations things of the past, with all kinds of business in a most prosperous condition, we all know that within the past three years, suddenly, out of an almost cloudless sky, there has burst forth upon the railroads of this country a torrent of the most bitter and violent attacks—by political orators upon the stump; in magazines and newspapers; in Congress and State legislatures. It is fair to say, I think, that this onslaught had its origin in the agitation of 1904 for changes in the Interstate Commerce law. It was based upon a misunderstanding of existing railroad conditions and the position of the railroad in regard to the points at issue, which I shall presently explain.
Following the agitation surrounding the passage of the rate bill has come a swarm of bills in Congress and State legislatures, which, if they become laws, and are enforced, will prove disastrous to the railroads, and, equally so, to the public at large. The question is, What is to be done to prevent it? The old method of influence has been abandoned, and, I hope, forever. Has it left us unequipped to meet the issue? To answer this question let us get a perspective.
RAILROADS NOT BLAMELESS.