Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1917-10-26
URGE MERGER
ATEARLYDATE
Pennsy Officials Ask For Con-
troll of. Another Impor-
tant Branch

In line with the suggestion for con-
solidating all the. railroads of the
country into a few powerful systems
Tor more direct supervision in opera
ton and substantial saving n eX-
pense, as strongly urged by Samuel
| Rea, president of the Pennsylvania
railroad system, before the National
Association of Railroad Commission
ers at Washington last week. the
Pennsylvania has taken an important
step in this direction by a plan to alb
sorb the Philadelphia, Baltimore and
Washington railroad into it's system.
A meeting of stockholders of the
Philadelphia, Baltimore and Wash
ington railroad has been called for
November z, to vote upon leasing the
road to the Pennsylvania for 999
years from January /, 1918. The
Pennsylvania railroad owns all but
twenty or thirty shares of the small
er road and operates 1t as the south
ern link of its 25,000-mile system.
The advantage of the merger, it is
asserted, will be the operation of the
road directly by Pennsylvania rail
road officials without maintaining a
special corps of officers and direc-
tors. 1t also will eliminate what Mr..
Rea has referred to as a needless
accounting department"
Mr.. Rea, who is a member of the
railroad War Board at WaShineton
working with the Council of National
Defense in keeping open the rail
transportation lines during the war
in citing the necessity for a closer
combination of the railroads before
the State Railroad Commissions said:
The day has come for the con-
solidation and unification of railroad
systems. No fewer than 2,3S5 sep
arate railroad corporations report to
the Interstate Commerce Commits
sion, and l hazard the guess that at
least 1890 of them could be merged
into the bigger systems with the vast
benefit to the public and every one
else concerned.
There are still in the Pennsylva-
MIA railroad system about 115 active
transportation companies, all neces-
sary, as matters now stand, for the
conduct of the service. | think we
will all agree that this is just ia
too many. But when we reflect that
they represent what were originally
more than 500 separately incorpor-
ated companies, we can feel that
some progress is being made in the
right direction"
The Philadelphia, Baltimore and
Washington is only one of the large
Pennsylvania subsidiaries to be
brought within the direct operation
OF the parent company within a
comparatively recent time. Only a
few months ago the Panhandle and
the Vandalia systems, subsidiary
units of the Pennsylvania Company
on the lines west of Pittsburgh, We're
merged and their individual organiz-
ations abolished. The Northern Cen
trail likewise was taken over under
the consolidation plan and many
smaller roads lost their identity in a
similar manner.
The Philadelphia, Baltimore and
Washington Railroad pays dividends
Of per cent on its $25,13S,0O0 cf
capital stock. This same rate will be
continued under the lease proposal
and a fixed annual rental will be
established. The main line of the
Philadelphia, Baltimore and Wash
ington Railroad reaches from Phila-
delphia to Washington, a distance of
131 miles. Including branches and
lines operated under contracts. leases
and trackage rights, the total mile
age operated is SOS miles. The main
line forms the chief stem of commu-
nication for the Pennsylvania Rail-
road system with Washington and
the South.