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.