Every student will say that INDUSTRY plus TRANSPORTATION spells CIVILIZATION and PROSPERITY. Every thinking man will say that INDUSTRY and TRANSPORTATION are inseparable ; the injury to one, an injury to both.

     Every traveler and shipper will say that what they desire from the railroad is SERVICE. Some years ago, when a Maintenance of Way officer asked a Pennsylvania Railroad President what was the most important thing in track work, he answered DRAINAGE and, when asked what was the second important thing, he answered MORE DRAINAGE, so that the traveler and shipper wants SERVICE first and MORE SERVICE second.

     You ask–Can the Railroads render satisfactory service?

     My answer–Yes ; they have in the past, while paying the highest wages of any railroads in the world and providing the greatest quantity and the best quality service of any railroads in the world. They are rendering service today, handling the biggest volume of business that has ever been handled without an embargo, a congestion or complications of any kind. They can handle the business satisfactorily in the future if the politicians, reformers and theorists are called off and the practical railroad men permitted to handle their jobs but, in doing so, it is necessary for each one of you, and all other employes, to back up the company in every possible way, because employes meeting the public, by faulty work on their part, can do more to injure the railroad with the public than the "wind-jamming" politicians can do, as generally today the public is not deeply impressed with the politician’s work.

     You ask–Why do I think they can render service?

     My answer–For two reasons :

     You ask–What other reason?

     My answer–Because of just such meetings as we have tonight with the Supervising Officers, Chief Clerks, Foremen and the Leaders getting together and discussing their common problems, which means BETTER SERVICE. We all know that the Junior Officers of today are the General Officers of tomorrow. When I look over a meeting of Juniors such as we have here, I am reminded of the story of the "nigger" baseball game where the score was 30-0 and, when a passerby got the score from one of the fielders and said "They are giving you a trimming" he promptly answered "This is the first innin’. We haven’t been to the bat. When we get our innin’ we will show these niggers how to play ball."

     Meetings of this kind are well worth while and it seems to me that every faithful, loyal Junior Official should keep constantly before him these lines from Kipling:

     It is my business today to feed the hungry Baldwin Locomotive Works Shop with raw material and I would sooner know the Supervising Officers, Chief Clerks, Foremen and Junior Leaders than I would the General Officers, because the General Officers map out the rules and regulations but you men are on the "firing line" daily and know just what is going on. Ninety odd per cent of our business moves into the plant without let or hindrance but, approximately 10% covers breakdown or emergency handlings and, when we have cases of that kind, it is my pleasure to get in touch with Chief Clerk Ben Livingston, at Broad Street Station, or Chief, Clerk Jones ; of the Baltimore & Ohio, at Baltimore, or Chief Clerk Morris, of the Phila. & Reading, at Reading and, BELIEVE ME, the response we get to an S. O. S. of this kind is well worth while. Let me give you two or three recent cases:

     We had a shipment leave Chicago at 8:00 o’clock Monday morning and it reached Jersey City at 1:00 o’clock Thursday morning–64 hours elapsed time for approximately 900 miles–so as to make a steamer sailing, at Noon Thursday.

     Another rush car for hurry-up job left Boston one Thursday noon and reached Eddystone before 8:00 o’clock Saturday morning.

     Another shipment: A steamer was at Eddystone to load engines for South America on Saturday morning, requiring one week to finish their loading job. When they arrived, the tubes for the last engines were just being shipped from Allenport and the car arrived at Eddystone in time to have the tubes applied, engines tested, accepted, knocked down, boxed and put on board the steamer that sailed the following Saturday.

     In answering the question about rendering service my answer was because of the ability and ambition of the employes to aid the company and thereby and themselves.

     You ask–Is there as great an opportunity for advance in railroad service now as in the past?

     My answer–Yes ; because the normal increase of business in this country is between 7 and 10 per cent. per annum and the greater the business the greater the need of supervision. Take your own officers, who have been with the Pennsylvania Railroad so many years. President Rea, forty odd years ago, started as a Rodman. Vice President Atterbury, at the age of 20 served his apprenticeship at Altoona Shops. Vice President Dixon started as a Freight House Clerk and has been in the Traffic Department all of his life. Vice President County started as a Clerk and, by close attention to details, he is now in charge of the Accounting Department of the System. Vice President Lee started as an Engineer, during the war was Federal Manager and recently moved to Pittsburgh so that he could become acquainted with the Western country. Vice President Krick started in the Track Department and won his spurs with the opening of the New York City Passenger Station–and right here I want to pay my compliments to Terminal men. Any man can handle a main road between A and B and these men, are the same as what you might call Fielders in a ball game, but the men who receive and deliver the cars in the A and in the B Terminal are the Batteries, and you know a ball game is worthless without good Batteries. My friend General Superintendent Parker here graduated from the busy Philadelphia Terminal and I am glad to see him advanced to the General Superintendentship. He, was followed in Philadelphia by Garrigues and he gave a splendid account of himself, including the operation of that wonderful terminal after the Broad Street trainshed burned down, and now they have sent Garrigues to Chicago as General Superintendent. There is an old saying to keep your eye on the terminals and the main road will take care of itself.

     Now, let us look at the officials of other railroads, ninety odd per cent. of whom have risen from the ranks by hard, intelligent work. President Willard, of the Baltimore & Ohio, was a Laborer, Fireman and Engineer. President Dice, of the Reading, 25 years ago was Signal Supervisor on the Reading in New Jersey. President Besler, of the Central Railroad of New Jersey, started as a clerk in the Yardmaster’s Office. President Truesdale, of the Lackawanna, was a Purchasing Agent. President Pearson, of the New Haven, was an Engineer, completing the Chicago & Milwaukee over the Rocky Mountains and the first job he does on the New Haven is to build up terminals, working out the New Haven Cedar Hill Transfer lay-out–a splendid thing because the New Haven is virtually a big Terminal Switching Line. President Uunderwood, of the Erie, was a Freight Brakeman and Conductor and he can take a lantern today and give as good a high sign or a kick-off signal as any man in this room. President Smith, of the New York Central, started as a Messenger on that line and has been there ever since. President Bernet, of the Nickel Plate, started as a Telegraph Operator on the Lake Shore. President Markham, of the Illinois Central, was a Coal Chute Laborer and he thought he had the best job in the country when he was made Local Agent and the company gave him a house to live in over the office and furnished heat, light and water. President Mapother, of the Louisville & Nashville, was a stenographer and has spent all of his life with that company. Chairman Kruttschnitt, of the Southern Pacific-one of the highest paid railroad executives in the country-was an Engineer. He was the right-hand Transportation man for the late E. H. Harriman and today Mr. Kruttschnitt can take anyone’s letter and present it in as good English as any man in this country. Both President Schaff, of the M. K. & T. and President Miller, of the St. Louis Terminals, started as Switchmen. President Gray, of the Union Pacific, was a Telegraph Operator and I was dining with him one evening when one of his early associates came over to say "Howdy" and he told me that he was a better Operator than Gray but that he was still an Operator while Gray is now a Railroad President. President Byram, of the Milwaukee, was a Yard Clerk on the Burlington. President Felton, of the Chicago Great Western, was an Engineer and laid out the Chester Creek Branch of the Pennsylvannia between Thurlow and Wawa. Vice President Wells, of the Santa Fe, will tell you that he was discharged by wire from the Big Four by the President because he had three serious accidents in one month-a head-on collision because someone had changed the yard limit board ; a passenger train turned over because of a broken rail and a high speed passenger train heading into into gasoline cars because of an open switch.

     The advancement of every man depends upon the ability and the earnestness that he puts into his job.

     Your question about the ability of the railroad to render service : My answer was because of the loyalty of the officers and all thoughtful men to avoid GOVERNMENT OWNERSHIP. Any politician, reformer or theorist can run a railroad BUT you require practical men to operate the Lines if you expect to render service, maintain your property and have any money left in the bank so that you can borrow additional capital to keep abreast of your business requirements. However, the very bigness of the railroad invites the politicians to kick at it, provided they feel it will not react against them. The railroads today employ two million men with a three billion dollar payroll and one and one-half billion dollars for Materials and Supplies. The industries depending upon the railroads employ another two million men, so that these four million are approximately ten per cent. of the census of all gainful occupation men in this country and yet the Interstate Commerce Commission shows that, in 1920, on the tentative valuation of the railrodas, they earned less than one per cent. ; in 1921, they earned three per cent. ; in 1922, a little over four per cent. and this year it looks as though they should earn five per cent.

     One of the greatest friends of the Northwest was the late James J. Hill, the builder of the Great Northern Railroad, and tonight he would turn over in his grave if he knew that Magnus Johnson had been elected Senator for Minnesota, not because Johnson was a Dirt Farmer, but because Johnson believes in GOVERNMENT OWNERSHIP OF RAILROADS. It was my privilege to hear the Senator speak at the Metropolitan Opera House in Philadelphia some weeks ago. He told about what he was going to do with the Soldiers’ Bonus, the Federal Reserve and was going to have President Coolidge talk for publication but, the second day after his arrival at Washington, the papers announced the interview had been held and Senator Johnson claimed the President had made a very fine impression upon him.

     Some time ago, Senator La Follette called a meeting in Chicago and announced that it was a "NATIONAL CONFERENCE ON THE VALUATION OF AMERICAN RAILROADS" but the goal of the meeting was GOVERNMENT OWNERSHIP and, not one prominent shipper of freight was recorded in the press reports as being in attendance. Senator La Follette was the author of the Railroad Valuation Bill and, when urging the passage of the measure in the Senate in 1910, claimed that the valuation could be made at an expense of approximately two million four hundred thousand dollars and yet, up to December 31st last, the work has cost approximately ninety million dollars. Senator Brookhart, of Iowa, was not in attendance at the meeting because the press recorded that he was in Russia. The American people have not yet forgotten the Federal Operation of Railroads during the war because the last figures that I have seen from Washington record a loss of one billion eight hundred million dollars, or at the rate of seventy million dollars per month for the 26 months. I am one of those old-fashioned men who believe that Private Operation is more economical and efficient than Public Handling. It is my understanding that the Postoffice Department last year lost thirty-five million dollars ; that the Panama Canal, with an approximate cost of two hundred and seventy-five million dollars, collected fifty-seven million dollars for tolls last year at an expense of fifty-four million dollars so that there was less than two per cent. on the investment. Anyone who leans toward Government Operation of Railroads should have an object lesson in Canada. The C. P. R. is a first-class privately owned and operated railroad, extending from the Atlantic to the Pacific and last year it earned ten per cent., while the Canadian National, a Government owned and operated railroad, lost approximately one hundred million dollars–and yet the operating records show that both railroads had approximately the same number of men in service. I would like to debate, at any time, with any politician, reformer or theorist, the question IS PRIVATE OWNERSHIP AND OPERATION OF THE RAILROADS OF THIS COUNTRY NECESSARY FOR THE COMMERCIAL SAFETY IN TIMES OF PEACE AND THE NATIONAL SAFETY IN TIMES OF WAR?

     Last April the Railroad Executives issued the greatest promissory note that this country has ever had. They promised to spend a billion and one-half dollars to improve the properties in 1923. They promised to speed up the locomotive repairs so that not more than fifteen per cent. would require heavy repairs on October 1st and not more than five per cent. of the freight cars would be in bad order. Both of these jobs they finished in good shape. They promised to speed up the movement of cars to 30 miles per day and aid in increasing the tonnage to 30 tons per car. The mileage and the tonnage, however, was not accomplished because generally the shippers failed to do their full part. The Pennsylvania Railroad collected over three hundred thousand dollars each month this year for demurrage–that means approximately ten thousand dollars per day or five thousand cars at two dollars each and, as the Pennsylvania Railroad handled more than ten per cent. of the business, there are fifty thousand cars every day standing idle because the shippers are not doing their part. Now, let me give you a recipe of the Baldwin Locomotive Works for service:

     President Vauclain works on what we call a three months turn-over, that is, it is three months from the day the material begins to arrive until we begin getting paid for the engine and, as we are working on a ten million dollar shipping program, we have three times ten or thirty million dollars in the grind. Now, if the railroad service is so poor that it requires a four months turn-over, we have forty million dollars in the grind and the difference to the Baldwin Locomotive Works between a thirty-million-dollar turn over and a forty-million-dollar turn-over is three million dollars net and, for this money, we can pay freight charges and a great many other things so that what we want is SERVICE and the rates will take care of themselves–and that same reasoning applies to other shippers because, if they find out what their own business costs, they will find that railroad transportation is one of their minor expenses.

     We have a six hundred acre lot at Eddystone on which is located our big Erecting Shop. Some time ago, we made some study figures to see what could be done by incorporating a terminal railroad such as is now in effect with some of the Steel Companies but our executives decided that we were Locomotive Builders and not a Terminal Railroad and that the terminal and all other switching revenue belonged to the carriers.

     I met a lot of my farmer friends at the polls early this month and they were talking about the railroads refusing to reduce the wheat rate for President Coolidge. I told them that the wheat rate for export from Minneapolis via Philadelphia was 34½ cents a hundred or approximately one-half cent per ton a mile. I told them that the five-passenger Ford car that stood outside of the voting place that day weighed approximately 1700 lbs. and, if one of these cars broke down on the road and they were asked to give it a tow of two miles and put the car in the garage and then the man gave them a new COPPER and said "Keep the change", they would "hit the ceiling" but that is exactly what happens to the railroads, because they were not able to get a whole copper for hauling 1700 lbs. of wheat two miles.

     Every practical man when looking over a railroad operation can tell whether it is GOOD, BAD or INDIFFERENT, just the same as a musician, painter or stock grower can size up his experienced eye. It is true that a man is known by his tools but it is also true that any man should do good work with good tools but it is a good man who gets results with poor tools and the railroads were blighted by political control, so that the best tools at the present time are not available.

     You ask–If the shippers expect service from the railroads, what should the railroads expect from the shippers?

     My answer–SUPPORT. They should promptly deliver land receive freight to keep warehouses clear. Recently we had a two-pound package shipped by freight from Chicago. The charges were 64 cents. Express rate would have been 40 cents and the parcel post 14 cents. This was a "bonehead" move on the part of the shipper and you may rest assured that there are just as many bad moves on the part of the shippers as there are on the part of the railroads. We get wonderful results from the Pennsylvania Railroad through the Harrisburg Transfer because all of our L. C. L. shipments from a certain territory route over the Pennsylvania and we are able to collect a carload of L. C. L. almost every day from Harrisburg direct to our Eddystone plant.

     I want you to get this firmly fixed in your mind: The Baldwin Locomotive Works, at Eddystone, and our subsidiary. the Standard Steel Works, at Burnham, Pa., have not permitted one dollar of demurrage to acrrue for the past three years and you may rest assured no such demurrage, because of delayed cars, will accrue for the next three years. The shippers should deliver the packages to the railroad in shape to go through to destination and avoid claims. The Baldwin Locomotive Works feels that the best package is none too good and we feel further that, when a consignor receives a package put up in good shape, he gets a good impression of the contents of the package and gives it better attention than he would if it was prepared in a shipshod manner.

     IN CONCLUSION: What should each of you do to advance the Pennsylvania Railroad’s interest by better service and thereby advance yourself, at the same time preventing Government Ownership?

     My answer–Work, study, and use the "gray matter" that the Heavenly Father has given you. Be honest ; if you make a mistake, be the first to tell your superiors. Be honest to yourself and you will be honest to your officials and the company. Be loyal. If you are working for a man, for heaven’s sake work for him morning, noon and night. DO not be forgetful. Have confidence in yourself–be blamed for doing something rather than doing nothing. Be wide-awake. Be a good man ; be the best man in your department. Keep your desk clean, because it is a true saying that a man with a clean desk is forcing the job, while a man with a desk covered with papers the job is forcing the man. Finally, remember