Evening star., 1921-01-09
CONSIDERING PLANS
TO COMBINE ROADS
Consolidation Schemes Being Studied by
the Interstate Commerce Commission
and Arguments Presented.

Boston banker. proposed before the
conference committee on the Cum
Minis -Esch bill
Provide for Competition.
All Of these plans provide for COM
petition among the various systems
in each section of the country. The
number OF systems into which the
roads are to be consolidated varies
from eight to twenty-five Though
most of the plans propose that the
systems to be created shall be re-
stricted to section of the country.
the plan advanced by Lisman provides
for national competition among the
eight systems he proposes, all of
which would reach the Gulf of Mex
lco. the east and Chicago. while Ave
OF them would also reach the Pacific
coast. Only two systems both of
them southern. do not have New York
as a terminal port. while only one
system has New York as its only east
ern terminus
Under the Willard plan, from 20 to
20 systems are proposed: Fritch plan.
Hungerford plan, IL to IS systems.
i and the Oldham plan. II systems. The
number of competitive districts pro-
posed under these plans is as fol-
! lows: Willard. 5: Fritch. 8: Lisman.
l.: Hungerford, 5. and Oldham. ;. The
mileage of the different systems has
been worked out for the Fritch and
Oldham plans. and is shown to he for
! the Fritch plan, from 4.os4 TO l1.7aS
| miles. and for the Oldham plan. from
10000 to $4,000 miles
Mr.. Oldham'x Argument.
| Mr. Oldham. in submitting his plan.
| has insisted that il is possible to bring
together the railroads into large COM
| petitfve groups without seriously dis
turbing relationships already estab-
! iished: that with roads SO combined
there would be little disparity in ;raf-
fic and operating conditions among
the separate systems competing in the
same territory. and that these sys-
TENS under uniform rates would be
able to earn substantially the same
| rate Of return on their property In
valued. He has insisted also that the
f, building up of strong transportation
systems by consolidating companies
! with closely affiliated traffic relations
/ is not new. but that if IS a practice
i that has been developing for years.
! In June. 1915. fer instance. thirty
railroad companies. in combination
with other companies which they con-
| troIled. directly or indirectly. oons;i-
tuted systems which handled ap-
try's entire traffic
Problem ef Credit.
In the opinion of Mr.. Oldham. the
! real problem which confronts the
railroads today is problem of credit
The solution of this problem the con-
solidation of the roads into the pro-
posed systems. he insists. is bound to
aid Consolidation would hasten the
necessary readjustments OF capitaii-
zation of the roads. With uniformity
of capitalization and with only q
small difference in cost of operation.
it would not be necessary to limit
the earnings of individual companies
in order to create an equality of con-
ditions. The substantial uniformity
of conditions among companies oper-
ating in the same territory would
greatly simplify the problems of regu-
lation, and with the capitalization OF
the various companies properly ad-
justed and equalized, railroad credit
generally would be upon sounder
basis. There would be greater assur-
ance of the capital necessary TO meet
the TRANSPORTATION requirements of
the country.
Gov. COOlidEe's Suggestion.
Gov. Coolidge of Massachusetts, who
is soon to become Vice President OF
the United States, in an address de-
liyered in Boston recently. declared
that the condition of the railroads
should have the attention of the pub
lic and suggested that the New Eng
land roads might well be consolidated
into a system or might be united ad-
vantageously with great trunk lines.
thus solving their troubles.