South Bend news-times. (South Bend, Ind.) 1913-1938, 1922-04-25
MERGER OF RAIL
LINES Is BEING
PLANNED BY U. S.
Interstate Commerce Com
mission Will Consider Vast
Amount of Data.

WASHINGTON. April 24-The
first step IN carrying on the plan
for consolidating the railroad OF
the United States into a limited
number OF systems. as provided for
By the transportation Act. was tax
en- today by the Interstate commerce.
commission.
The commission began a series Of
hearings that are expected 20 have
a far-reaching effect upon the rail-
road properties OF the country. A
vast amount OF data bearing on rail-
road ownership. operation. etc. will
be presented during these hearings
which are expected 10 extend over a
period OF several months, and il may
be a year before the commission
makes its report 70 congress on the
subject
The hearings which began today
will be confined 10 the railway prop
critics in what - known as the south
eastern region OF the United States.
The roads in various other regions
Will be considered later, the COM
mission announced at the opening
session today.
Under the authority OF the Trans
portation act the commission pre-
pared a tentative plan Tor the pro-
posed consolidation and commits
stoned Prof william Z. Ripley, Of
Harvard university. 10 prepare a re-
port on the subject. In some re-
spects the commissions tentative
plan does not follow Riley's recon-
mendations. but presents alternative
suggestions.
Classification of Roads.
The roads Included in the COM
missions tentative plan Of consolida-
ton comprise most OF the class one
steam railroads. but few OF those in
classes two and three. Those not so
included, whether industrial COM
mon carriers, terminal carriers, in
terurban electric railway operated
as a part OF the general steam rail-
road system. short lines" or others
will be considered at the hearings
so that in the plan ultimately TO be
adopted provision can be made for
their inclusion in the various sys-
TENS. Carriers by water were not
/
missions tentative plan. but IL was
announced that where these carriers
are now controlled by rail carriers
they will be considered as being in
cluded tentatively in the systems in
which the controlling rail carrier has
been included.
Summarized the requirements
with which the commission must
comply in preparing the consOlida-
/ ton plan are:
1. Competition must be preserved
as fully as possible.
2. Existing routes and channels Of
trade and commerce must be main
tanned.
3. Subject TO 1 and 2. the sew
eral systems must be so arranged
that the cost OF transportation as
between competitive systems and as
related 10 the values of the proper
/ ties through which the service Is
rendered shall be the same. so far as
practicable, so that these systems
can employ uniform rates in the
movement OF competitive traffic and
under efficient management earn
\ substantially the same rate Of return
upon the value OF their respective
railway properties.
/ The commission points out that in
the law calling for the consolidation
of the railroads into systems stress
is laid upon the value OF the proper
ties &c be consolidated, but that
value Will not be a controlling fac.
tor until application is made for the
consolidation Of two or more rail-
way properties after the complete
plan shall have been adopted.
1T would seems' said the com
mission. that evidence as 10 value
viii not be helpful. If needed ma
terial, at the present stage Of the in
I quiry and certainly not evidence as
TO the financial tructure OF the re-
spective carriers. This has particu.
lar reference to the contention that
the credit of the so-called strong
roads Will be impaired by consolida.
ton with the so-called weak roads
weak in many Instances In the
! sense that they have not had the
/ benefit of conservative financial
/ policies"