The Birmingham age-herald., 1914-07-28
Will Be Located at Charles ton, s. C., Says Presi-
 dent Harrison
ENGINEERS NOW
 PREPARING PLANS
President of Southern Railway Testi- flies Before Senate Committee. Says His Road Will Make
 Costly Improvements

Washington, July 27.--Conarmation ot the intention Of the Southern rail- way to build Immediately at Charleston. $. C., an independent coal terminal for Panama canal traffic was given today by President Fairfax Harrison before the special Senate committee .investf- gating the coal rate situation in the south
 Mir. Harrison told at length of the f. nancial 19Sairs of his road. partleu- larly of its~distress in 1908 His cross leSamination tomorrow on the financial relations between the road and it's di- rectors probably will conclude The hear lings until next December
 President Harrison said engineers were now at work preparing plans for tho construction of terminal to ac- commodate the loading ot one ship at the time at Charleston, and that 1t would take from nine months to year to complete the work.
 ! Mir. Harrison estimated that it would cost s11.300000 to put his road from the Appalachian coal fields to Charles ton into proper shape for profitable coal transportation and to complete the Charleston terminals.
 Denies Trust" Control
 During his testimony Mir Harrison denied emphatically that his road was controlled by the so called trust" coal interests, by other railroads controlled by these interest or by Wall street
 He expressed the opinion that E. IA Dnianey, independent coal operator of
 Bristol, Tenn, who charged in testi- mony bad faith the part of the southern to the coal operators along it's line, was suffering from "delusion
 from persecution."
 I believe that Mir. Du1aney has a deep seated hatred for one or two men
 who have succeeded In the Virginia and
 Southwestern and Appalachian coal fields where he failed Mir. Harrison said. Being unable to reach these men, he attacked the Southern railway. i, Resents Charges of Bad Faith T bitterly resent the charges of bad faith and chieanery brought against the organization of the Southern. ana 1 think 1 am supported therein by that
 great mass of people who have done
 business with us in the south, also
 resent the imputation that the direction . of the policy of the Southern railway
 has been in outside hands. and that the
 mana cement has been for any other in
 tc, est than that of the south The . am bition and policy of the Southern has
 been to take a part in the regeneration of the south"
 President Harrison contended that the charges were in the temper of the times which would listen to any alle-
 gation that railway is being used for dishonest purposes.
 of I believed that the stockholders had elected directors that used the
 Southern railway to it's own disadvan- }, ltage, l would resign" continued the e spt alSer.
 n Morgan Never Interferred d The late J. F. Morgan. who was a s member of the voting trust for the Southern never interfered with the policies of the road MT Harrison said. ; and never discussed with it's manage
 ment any traffic in coal or anything fl else.
 Charles Steele. memberof the Morgan firm. was southern man and was the = most helpful director the Southern rail- 5 way ever had. said the witness. Refer
 ring to Ebert M Garry of the United States Steel corporation. Mir Harrison
 said he believed he suggested the name
 of Judge Gary as a successor to the late n President Spencer of the Southern on the l. board af directors.
 q T frankly admit that I suggested him
 for the benefit of the Southern," added
 President Harrison. That was before
 the day of universal disapproval of in- s terloclsing directorates since this agita- l. ton has come up, l have watched par
 ticulary Mir Gary's attitude. He has
 been scrupulous in separating his iden- 1 tity as d director of tho Southern and his e interests in the United States Steel cor , poration both as to purchase of cars . traffic in coal out of the Birmingham dis !. trict and in all other instances" l. Dulaneys Charges Untrue
 President Harrison gave n historical de. Il scripton of the growth of the Southern
 emphasizing particularly the noticeable
 campaign of railroad acquisition carried r on by the late President Spencer.
 President Harrison characterized as ab- solutely untrue tho charge made by Dn- . laney that the Pennsylvania railroad in Il fuenced the affairs of the Southern. He
 declared his company has favored the de- ' velopment of hydro-electric power. say 5 ing 1t developed industries and coulc u bring glory enough for all' "You are after freight. not glory sug-
 gested Senator Tillman.
 z "Glory brings freight" replied President Harrison, smiling.
 President Harrison produced the record ,i of yearly coal shipments. v "Of course you find the real smart o men buy West Virginia coal" suggested Senator Milton.
 "Pd hate to discuss that" replied tn.
 
 President Harrison said the sudder ldeath of President Spencer left the
 company with one of the seyerest diff . ficulties a railway ever faced % Near Disaster in 1908 Tn 1908 we came as near disaster ls as a railroad can come" President liar IT. rison added. "A railroad with income can borrow but our income fell of. :, spent the time in New Ycrk trying tt T, borrow money and President Finle, . spent his time on the road to cut of "a expenses"
 s President Harrison read several let = ters he wrote to President Finley a !, the time. One told of borrowing S2,000.- 70 900 from three New York banks fo Is three months at 10 per cent. MT. Harri "a son suggested to the president that al if construction be stopped and the casf o box closed down.
 He spoke of J. Pierpont Morgan a' If the first emergency hospital and in z st llater communication told of inducing n ithe Morgan firm to advance enough . Imoney to tide over the Southern. ,e My friend, Mr, Steele of the Morgan ,s lfirm. said my attitude in seeking tl
 borrow money cheered if it did no
 fnebriate" the WitnesS ad1ed fit ftsh If