Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-11-18
fTrIbune's Washington Bureau)

Washington, D. c., Nov. 17.-Ten-
tative plans which suggested the pos
sible consolidation of the Great North
ern and Milwaukee railways are not
only illogical but were never put for
ward with the thought that they would
be carried out nor do the officials of
the Great Northern desire to effect
such n merger. This statement, gather
ed III interviews with Walker ID.
Hines, counsel for the 'IIilF' group,
and Preident Ralph Budd, of the Great
Northern, at the railroad hearing here
Friday, serves to clarity conflicting
{ reports that have prevailed since the
merger idea was first advanced.
Hines, in q statement made prior to
the hearing before the interstate com
merce commission, said the Milwaukee
railway could be more logically placed
with other railroads than the Great
Northern and the Northern Pacltlc,
and in a manner that would not ellml-
nate competition in the northwest The
merger of these roads as proposed IN
plans drawn by Professor Ripley OF
Yale. is not reasonable, he said. by
reason of the fact that the treat
Northern. with the Northern Pacific,
owns 9S per cent of the stock OF the
burlington road, which exists only as
q mutual interchange between the TWO
lines. and that to vote IFS stock 70 J. j
merger with the Milwaukee would
leave it alone along the extreme north
border of the northwest states.
is Systems Planned |
"Narpers as contemplated by the |
TRANSFORMATION act of 1920" continued
Mr.. Hines. would tend to unite tne
railroads of the country into ABOUT 10
systems as against 90 or oo now II
independent operation. lnder sun
groupings these fewer larger systems
conId be better controlled by the inter,
state commerce commission and heid
more directly responsible. IL would
nroyide cheaper rates and better ser
vice for the public. There are today
FOO many railroads of unequal strength
and the stronger are growing IN re-
sources and earning power While the
weaker are losing ground Inc genera
scheme of solution is to unite stronger
roads with the weaker where ge
ographically and economically posSiDle,
so as 70 place all roads into perhaps
dozen and a half systems which
would be of equal strength. | beheTe
the merger we propose to keep the
"HiIl', units intact will take time. but
that it will ultimately come about
without the danger of stifllng compe-
tition in the northwest.
Two outstanding developments were
brought out in the afternoon hearing.
in the opinion of President Budd- 1he
first was the statement by oon1lnls
sioner Hall that tentative grouping
suggested bv Professor Ripley, which
;ncl,dad either the Northern Pacific
and Burlington with the milwaukee,,
or the Great Northern with the Mil
waukee. was merely suggested plan
Inon which to begin the hearing and {
that the interstate commerce commls-
sion had no groupings IN mlnd or I
preferences. he said. II
.sThis greatly strengthened our case,
said Mr.. Budd. THE second develop I
ment was when President Holden OF /
the Burlington said that the country I
could be better served by fewer sys- ! .
TENS and that four larger ones we're
sufficient west of the Mississippi. com I
missioner Hall agreed with this state !
ment."
Would Aid Montana
'"Tbe effect Of this merger on Mon !
tana." Mr. Budd continued, would be
tha ultimate building of more mileage
and the increased development of the
state. Montana is in greater need OF
more rail mileage than any other state
in the Union and three separate INES
are not in a position TO finance TINS
development. The merger Of the Great t
Northern with the Milwaukee would |
only tend to keep the Great Northern t
from building in Montana through in i
ability to finance improvements. .
'eThe contemplated merger in line !
with the Great Northern plans would }
tend to draw more freight to Great ,
Falls. whereas a merger with the Mil +
waukee would draw it away and ulti1
end with the discontinuance Of
the line from Great Falls to Billings.
This consolidation will have no effect !
On electrification plans nor on the ;,
number of employees, since the roads -
will remain physically the same, and at \