The Washington herald., 1914-07-28
SOUTHERN ROAD
NOT CONTROLLED
President Harrison Refutes
Charge that Coal Rates
Are Dictated.
EXoNERATES OFFICIALS
Would Resign if He Felt Charges of
Checking South's Develop
ment Are True.

Appearing before q subcommittee of
the Senate Committee on Naval Affairs
yesterday to testify in regard to
charges made by Ben L. Dulaney. Of
Bristol. Tenn. that the Southern Rail-
way Company at the dictation Of out
side influences had adjusted coal rates
In such q manner as to adversely affect
coal operations on its line, and to pre-
vent the free movement Of coal to At
lantic ports south OF Norfolk. President
Fairfax Harrison. OF the Southern, en-
phaticaIly denied the charges. In reply
he told Of plans for the establishment
Of q coal terminal at Charleston which
the Southern Railway had perfected be-
fore the investigation by the Senate
committee was ordered.
Mr.. Harrison said he resented charges
that there had been any improper con-
duct on the part of the management OF
Southern Railway. He declared that II
he believed Mr.. Dulaney's charges true
he would resign as president OF the COM
pany and that he believed other respon-
siole officers would do likewise Mr..
Harrison declared his belief that Mr..
Dulaney is suffering from a "delusion Of
persecution due to his intense hatred
Of few men who have succeeded where
get at them he has attacked the South
ern Railway.
Exercised No Control.
Taking up by name the men Mr.. Du-
laney had cited as influencing the policy
OF the Southern with respect to coal
traff1c, Mr.. Harrison declared that none
Of them had exercised the slightest in
huence or control over the policy and
that no member of the voting trust COM
mittee or the board of directors had
ever attempted to use his position TO
have anything done for any other pro-
perty in which he was interested.
The charge that the Pennsylvania
Railroad or any other line has ever con-
trolled the policy Of Southern in regard
TO the movement Of coal, Mr. Harrison
characterized as absolutely untrue He
further stated that the policy of South
ern as to coal traflc had been developed
and administered solely in the interest
of Southern Railway Company and the
territory il serves.
Mr. Harrison reviewed the financial his
tory Of Southern Railway. dealing par
ucularly with the financial straits in
which it found itself after the panic Of
1907, when the company was on the verge
Of bankruptcy and how 1t was necessary
to postpone for years many improve
ments that were greatly desired because
Of lack of funds. He paid a high tribute
to the work of the late President Fin
ley, who, he said. built at the same time
the credit OF the Southern and one of
the finest organizations to be found N
service.
Rate of $40 a Ton.
He showed how to AFFORD facilities to
shippers on its lines it had last fall put
in a rate Of $40 a ton to Charleston on
coal for transshipment, exactly the same
rate the Norfolk and westerna has to
tide water.
In regard to the coal terminal at
Mr.. Harrison stated that
Southern Railway is preparing to build
the first unit of such a terminal. sufi-
cient to coal one ship at a time and
equipped with the most modern appli-
ances. The ground has been bought. the
money for the work is in bank. and en-
gineers have submitted their first report.
This terminal is to be independent Of
facilities to be constructed by any other
and will be open to every
coal shipper located on the lines of
Southern Railway. Negotiations in re-
gard TO the terminal had been in progress
for several years and final determination
TO provide coal shipping facilities at
Charleston had been reached long before |
his investigation.