New-York tribune., 1922-11-12
! q Iisrssan Considers De-
,ern,ination of the Value
Il stockholders Equity
1lne of Chief Difficulties
legality of Procedure
r,.,un.lsory Consolidation
Is the Government Is a
Iong Way Or. He Says
BY F. ]. Lisnan


he transportation act OF
1890, generally known as the
Esch-Cummins bin, contains
mandate to the Interstate
r..,rseree Commission to prepare
I'd ADOPT plan for the consolida-
.;ar Il The railway properties into a
w,,;,ed number of systems. These
.s,.ems sbsll preserve competition,
i, giting channels of trade and
.,rp,erce are to be maintained. The
.,tsspls shall be so arranged that
lie eoss Of handling their business
,saa average about the same, and
lies shall earn substantially The
une rate Of return on the value OF
aeir respective properties. After
lie commission has prepared such q
/ pssative reorganization scheme, il
I ordered TO hold hearings ana
] snslly adopt and publish a plan.
4 Tae commission has been faithfully
I sassvoring to carry out this mandate
I sa Congress. and has turned the
a auhlem over to Commissioner Hall,
ss Of the older members of the COM
sssion, who is By nature very thor
4 gh and painstaking student. In the
..,h;f, su o~onrJuo,. x,-;tn ;n,tr,o
4 aess Of the commission, Professor Rip
q ii, Of Harvard, after careful study and
4 svsssion with the railroad officials of
i, scountry, has worked out a plan
4 ,.eh was published by the commits
1 as about year ago.
4 Based on this plan, hearings have
sa held in Washington in connection
4 sah the Southeastern groups. Hear
ags ase to commence shortly in Wash
& agton for the purpose OF formulating
4 definite plan for the Northwestern
# gsap Under the Ripley plan, tenta-
assly approved by the Interstate Com
s ssr,s Commission, the lines north and
wa os The Twin Cities are to be con-
ssiastsa into two systems, which will
4 attend from Chicago TO Portland, Ia
4 ssna ind Seattle. The Great Northern
.etaka ever the Chicago. Milwaukee
4 aAPaul and all it's subsidiary COM
4 psniss, nd in order to give it some ad-
I asaaas ssad revenue producing prop
stia |! !, also to absorb the very
pasM ore carriers terminating at
Asz ias Duluth & Iron Range and
81 MMlath, Missabe & Northern Rail-
b ny The Northern Pacific Ia to take
i sFas Chicago, Burlington & Quincy.
Il lssgress and the commission theo-
siaAy will dispose of the various
ahpad properties, but the stockhold-
asand management of these roads in
airs cases do not agree with the com
Vision as to the desirability or value
= dhe proposed consolidation.
H The c., B, & @. is a fine property
'adiating from Chicago westerly and
aSrthwe sterly. It's main stem runs to
gpntana. although it is counted as
laong the strong lines running be-
iween Chicago and Kansas City, st.
Leuis and Kansas City, Chicago and
Omaha. Omaha to Denver, Kansas City
Denver, Chicago to the Twin Cities,
''t II was one Of the first roads built
'ut Of Chicago into the great Middle
Western country, and it has the best,
nearly the best, terminals in practi-
ally all the cities reached by it. 1t
as had The benefit of continuity of
policy and management for the sixty
ave years OF its existence, and has al
ssN been conservatively capitalized.
me's have been set aside annually
AN amounts for sinking fund pur-
@ss Which in the course OF two gem
s'aa'as have greatly reduced it's
funded debt.
hN Sr,c Possibilities
iae late James j. Hill fully visual
ssa The strength of this property.
sSSa ne bought in 1871 in order 70
s''s sae two railroads which he at that
@ae Dominated, the Northern Pacific
81 we Great Nortaern, not only an
~ .'aace from the Twin Cities into
sAieaso. but also the line from Bill
~. ~ mont, through the Wyoming coal
J., uS % Denree, and through the agri-
!. 'sl ws ar manufacturing districts
seofas4a, Iowa and Illinois to all
w af0fsant points in the Missouri and
mississippi valleys.
Z -. NH in 1901 was anxious to merge
northern Pacific and the Great
erh' and at that time the North
,,,,sss Sssarities Company was devised
A,,. a. purpose, but was subsequently
{. N.sa an Illegal holding company by
supreme Couss For the last
~, sa'y years these two great prop
/, "'s nave really been controlled bv
3, mn interests, though In accord
~th the law the properties have
opssated separately. Application
ss, ~ pending before the Interstate
- Commission for the priv
a.. merging the three Operations
s..is p the Great Northern, Northern
os,s ano the Chieago. Burlington &
sf.s. : as substantially all the stock
H. $ = 3. Z Q. is owned by the other
,,,.s .ss,r,porations, I, and since both the
Il. Northern and the Northern Pa
gave only one class Of stock SELL