Fairfax Harrison

Harrison was admitted to the New York State bar in 1892 and worked for the law firm Bangs, Stetson, Tracy & MacVeagh from 1892 to 1896.[2] He then joined the Southern Railway Company in May 1896 as a lawyer, becoming an assistant to the company's president in 1903.[3] He served as vice-president in charge of finance and accounting from 1906.[4] During the Panic of 1907, Harrison successfully persuaded J. P. Morgan to purchase bonds in the Southern to keep the company solvent.[3] After the panic had subsided, Harrison was named president of the Chicago, Indianapolis and Louisville Railway, later the Monon Railroad (succeeded Ira G. Rawn[6] after Rawn's death), which was jointly owned by Southern and the Louisville & Nashville Railroad.[7] William Finley, president of the Southern Railway, died on November 23, 1913, and Harrison was elected as his successor eight days later.[8] Besides the chairmanship of the Southern Railway, he was also elected to succeed Finley on three subsidiary railroads.[9][lower-alpha 2] His election was considered to be a sign of change in the Southern United States, especially in its railroads, both because he was a southerner and for his activism on behalf of the south.[10]

One of Harrison's first acts as president was to implement a new training program for college graduates hired by the company. Rather than being placed in supervisory roles, they were given regular entry-level jobs in the engine shops and on the building and repairing of railroad track, to give them an understanding of the basics of the railroad business. He also instituted a remedial education program for the regular workforce; they were trained in mathematics and other subjects to high school level, as well as in engine and machine-shop basics. The program was designed to help train new supervisors in the skills needed to oversee other workers.[11]

Another of Harrison's goals was to raise the morale of the workforce and locomotive engineers; crews were assigned to the same locomotives, and senior engineers were allowed to paint their names on their engines. When business declined in 1914 Harrison reduced his salary by 20 percent, but introduced smaller and graduated cuts for other staff, with the smallest percentages at the lowest pay scales. Other efforts to improve morale included rewards for fuel efficiency and the improvement of safety, including stricter investigation of accidents.[11]

Harrison oversaw changes in the railway's board of directors. Until 1915 most of the members of the board were from the northern United States but, after 1915, a majority of the board members were southerners. In 1914 there were two unusual appointments to the board: Edwin Alderman and John Kilgo. Alderman was the president of the University of Virginia and Kilgo was a bishop in the Methodist Episcopal Church.[12]

Harrison established a foreign trade department for the railroad, hoping to take advantage of the railway's ability to connect to the Mississippi Valley and Atlantic and Gulf of Mexico ports.[13] In 1915, when the railway lost 12 percent of its revenue owing to disruptions in trade caused by the start of World War I, Harrison was concerned about longer-term changes underway. In the annual report that year he warned stockholders that automobile ownership could severely impact railroad passenger revenues. His words proved to be prophetic, as automobiles eventually resulted in the disappearance of most passenger train traffic.[14]

A Southern Railway Ps-4 Heavy Pacific locomotive painted in the distinctive green and gold colors that Harrison introduced

From 1913 to 1919, Harrison oversaw the extension of double-track on the railway's mainline between Washington, D.C. and Atlanta, Georgia. The project was hampered by the war effort, but eventually covered the complete 638-mile (1,027 km) distance between the two cities. In 1916, Harrison acquired a railroad line that ran from Meridian, Mississippi to New Orleans, Louisiana. This brought Southern Railway's track total to more than 8,000 miles (13,000 km), covering 13 states. After the United States entered World War I in April 1917, some military training camps were located in the south and much of the construction material used to build them was hauled over the Southern Railway. Harrison was elected chairman of the Railroads' War Board, a coordinating committee of railroad presidents. Its five members were tasked with eliminating bottlenecks, and fostering cooperation between the various railroads.[13]

The board's efforts failed to meet the government's expectations; in December 1917, Woodrow Wilson, the President of the United States, ordered the federal government to take control of the railroads, by establishing the United States Railroad Administration (USRA). Harrison worked for the USRA during the war and, under its regulations, was required to step down as chairman of the Southern Railway. By the time the USRA returned control of Southern in March 1920 its treasury was bare. A few years of operation returned a surplus to the company, which led to the stockholders requesting in 1923 that the railroad pay a dividend to the holders of the common stock, something Southern had never done. Harrison managed to block the request, but in March 1924 a subsequent demand was successful, and a dividend of $5 (approximately $85 as of 2023) per share was declared. That was increased to $7 (approximately $116 as of 2023) per share in 1926 and $8 (approximately $136 as of 2023) in 1928.[13][15]

Map of the Southern Railway's routes in 1921, shown as bold lines

Harrison in 1927

An economic boom in the south following the end of World War I greatly increased Southern's revenues. Harrison spent a good deal of time traveling around the southern United States, endeavoring to increase southern industry. When he traveled, he used two private railroad cars, named the Carolina and the Virginia. Other railroad presidents used only one, which made Harrison's practice unique. The Carolina was a sleeping car and the Virginia was set up to serve members of the board of directors, with a kitchen, dining room, and observation area.[16]

Harrison attempted to increase the power of Southern's locomotives. In 1923, engineers under his direction created the plans for the P-4 class of Pacific type locomotives, which became famous and a symbol of the Southern Railway. On a visit to England, Harrison had seen the paint scheme used by the London and North Eastern Railway, which used apple green-painted engines. Returning home in 1925, he ordered the newly delivered Pacifics painted a forest green, which he called Virginia, with gold lettering and silver trim. These engines pulled the newly refurbished passenger trains that Harrison had begun work on before the war. He also instituted new passenger lines. In 1921 the Suwannee River Special began to run between Chicago, Detroit, and Cleveland down to Tampa and St. Petersburg in Florida. The Crescent Limited began service in 1925 between New Orleans and New York, with a scheduled time for the one-way trip of 37 hours and 50 minutes.[17]

Harrison continued the public relations and advertising efforts of his predecessors; in 1924 an advertising campaign was launched with the slogan "The Southern Serves the South", which soon became well known.[18] Harrison also spent long hours in negotiations to secure the legal foundations of the railway, consolidating the railroad's debt and acquiring majority control of some of the smaller lines that made up the railway.[19]

In 1926 the United States government forced the railroad to move out of its headquarters on Pennsylvania Avenue in Washington, D.C. Although Harrison threatened to take the company headquarters to Atlanta, in the end a new headquarters building was built on McPherson Square. Harrison installed a private lobby entrance leading to a private elevator to the 10th and 11th floors.[19] The railroad took occupancy of the building in the middle of 1929.[20]

During these years, Harrison exhibited a number of personality quirks that became legendary. One was his habit of calling in subordinates to dine with him in the executive dining room by sending them a blue chip that had the meal's conversational topic written on it. Usually the topics were intellectual rather than related to the running of the railroad. Another oddity was his refusal to use his railroad pass, which entitled him to free travel. Instead, he personally paid for his commute between his home and the railroad's offices.[19]

Before the Wall Street Crash of 1929, Southern's stock sold for around $146 (approximately $2,490 as of 2023), with an all-time high of just over $151 (approximately $2,570 as of 2023).[15][20] In 1932 the stock hit a low of $2.50 (approximately $54 as of 2023).[15][20] In 1929 Southern's freight traffic had been 8.4 billion ton-miles; it fell to 4.4 billion ton-miles in 1932. Southern's debt rose, and the company almost entered bankruptcy in 1932. Harrison ordered the payment of dividends to be halted in 1932, and many employees took pay cuts. Further efforts included a thorough check of expenses, with every item subjected to scrutiny to see what could be eliminated.[20] By 1936 the railroad again showed a profit; this marked the turning point for the company in dealing with the Great Depression.[21]

Harrison chose not to be reappointed as president in 1937, and nominated Ernest Norris as his successor.[22] Harrison, who was 68 at the time, planned to concentrate on his hobby of writing historical works, but he died three months after his retirement.[21]