Evening star., 1914-02-08
RAILROADS NOW
IN DIFFICULTIES
Fairfax Harrison, Head of
Southern, So Tells WASH
ington Traffic Club.
ORGANIZATION HOLDS
ITS ANNUAL BANQUET
Campbell Urges Line Between Pub.
lie and Private Corporations in
Sherman Law.

| The new and better relations of today
between the railroads and the people with
suggestions for further improvements
formed the themes of the principal speak
ers at the annual dinner of the Washing
| ton Traffic Club at the Raleigh Hotel
| last night. Fairfax Harrison, president
| OF the Southern railroad; Senator Hollis
| OF New Hampshire. and Representative
Campbell of Kansas made serious
speeches, and talks i'll lighter vein were
delivered by Clarence P. King, president
of the Washington Railway and Electric
Company. and Oden S. Smith. secretary
and treasurer of the Norfolk and WASH
ington Steamboat Company.
Enlightenment of the public as to its
interest in transportation systems was
suggested as a solution for difficulties en-
countered by railroads by Mr.. Harrison.
He spoke on transportation efficiency
and on the improvements in transporta
tion facilities within the last few years.
Carriers in Difficulties.
Every Intelligent man knows the rail-
roads are in difficulties today said Mr..
Harrison, land knows, too, that these
difficulties are due in part to past his
tory of the railroads. but in part also
to the process of adjustment to sys-
tenn of public regulation which has been
accepted as an accomplished fact, but
has. nevertheless, gone further into de-
tails of absolute statute law than any
other system of public regulation, even
of the activities of the government itself.
which the world has ever known.
MIR. Harrison said that realization
that this condition was built upon pub
lie opinion led to recognition that the
solution of the railroad difficulties
might be hastened by educating the
lie a fn fS n
the need of transportation systems.
He urged efficiency in handling pas
sengers because in the passenger
service we are dealing with the makers
of public opinion" He thought that
the public and railway managers were
beginning to realize that moderately
fast schedules and increased safety
were more to be desired than extreme
speed.
Would Draw the Line.
The drawing of a line between public
service corporations and private corpora
tions in framing pending changes in the
Sherman antitrust law was suggested by
Representative Campbell.
Interstate telegraph and telephone
lines, the public service corporations and
their rates are, or may be fixed or regu-
lated by public authority under the law
as 1t now stands" he said. THE Sugar
Refining Company, the Steel Corporation
and the harvester trust are private cor
porations. They are engaged in the pro-
duction Of commodities which enter into
interstate commerce. The price Of their
products is not fixed by authority of law.
They are required uader the antitrust
law to compete for trade. They are prop
erly prohibited from combin lining with a
view to fixing prices. But the Sherman
antitrust law has been applied in its ad-
ministration to public service corpora
tons, such as teleg- -aph and telephone
companies, whose rates are or may be
regulated by authority of law.
Same Rates Prevail.
The Bell and Independent Telephone
companies make the same rate to all
interstate points. The Western Union
and the Postal Telegraph companies must
make the same rate. They may not COM
pete. They must give the same service
to everybody at the same price. The
Sugar Refining Company may sell to one
man at ., another at 5h and another at
., and every industrial corporation en-
gased In the production of articles that
enter into interstate commerce are pro
hibited from combining to fix a price
that is equal to ALL
The Sherman antitrust law now would
prevent the Western Union from buying
the Postal Telegraph Company and
would prevent the purchase of the In
dependent Telephone Company by the
Bel system.
The application of the Sherman law to
these pubic service corporations could
only be upon the theory that these com
panles must be kept separate with a
view to insuring competition, and at the
same time state and national commits
sions now may fix and regulate the price
of the service rendered by these corpora
tions.
For Harmony in Law.
while the committees of Congress
are making new constitution it might
be well to make the law harmonize with
the nature of these two classes of cor
porations, to the great benefit of the
public
Representative Campbell spoke smiling
ly OF 'watchful waiting. the new free
DOM. and the constitution of peace"
referring to President Wilson. and said