The present law stipulates that there shall be no discrimination by railroads against persons or communities. Right here, however, the railroads are face to face with a problem all their own, which is a very serious one, and that is: How shall a particular railroad prevent discrimination against a community on its own line by some other railroad seeking to specially favor a community on its line? Is it not absolutely essential that there should be both an understanding and a virtual agreement on the part of the two railroads concerned for the purpose of protecting both communities? Cases of dispute between railroads as to proper rate adjustments have, indeed, been referred to Interstate Commerce Commissioners as arbitrators and their findings have been observed. This shows how absolutely vital to all business is the necessity for that co-operation which can only be secured by agreement and conference between all interested parties. The President of the United States recognized the necessity for this fact in his last annual message and recommended that some legislation be passed which would permit agreements between railroads as to rates. We are thus in the presence of this ridiculous situation; that on the one hand we are being threatened with prosecution by the Government for violation of the Sherman Act in respect to methods which on the other hand the President of the United States and the Interstate Commerce Commissioners agree must be followed in order to properly discharge our responsibility to the public--in other words, we are "between the devil and the deep sea," or we are damned if we do, or we are damned if we don't. So much for the moment, for our national problem. As to State regulation: while not believing--now that we have a national law--that it is necessary or desirable for the public to establish state commissions and special railroad laws, at the same time, if the people desire such commissions, we have no right to look upon such a demand as "anarchistic," but we feel that the working of such commissions will be unsatisfactory to the business interests. CONFIDENCE AND JUSTICE NEEDED. These are but a few of our problems and difficulties. While I do not wish to minimize the dangers of the present situation, while I recognize that it is now to some extent, by adding to the timidity of investors, retarding our ability to secure funds necessary to make extensions and buy equipment required for the ever-increasing traffic of the country, and if continued will make it impossible, yet I am firmly of the opinion that the good sense of the people will prevail and the unjust attacks cease. Confidence of investors both here and abroad is needed to furnish funds, and, if this is seriously shaken, the prosperity of the railroads, which are the keystone of the arch of business, will be destroyed.