The Mankato free press., 1922-11-24
MERGEOFR RAILWAY
LINES NOW SOUGHT
Important Hearing Being
Held In Washington
HILL GROUP INVOLVED
Whether Transcontinental Sys-
TENS In Northwest Should Be
Consolidated, Question
Associated Press DISPATCH.

ASSOCIATED Press Dispatch.I
Washington, D. c., November IL
transcontinental railroads
in the northwest should be consoli-
dated into two regional systems, one
built around the Great Northern and
the Chicago, Milwaukee and st. Paul
and the other around the Northern
Pacific and the Chicago, Burlington
and Quincy, was taken up for de-
tailed consideration at a hearing to-
day before the Interstate Commerce
Commission.
Representatives of the "Hill'
group, including the Northern Paci-
fic, Great Northern, and Burlington,
were given first hearing and through
Walker d. Hines, formerly director
general Of railroads, they attacked
the consolidation plan which would
result in a separation in their pres
ent unified holdings. No..
Other railroads concerned, includ-
ing the Chicago, Milwaukee and st.
Paul through its president, HI. e.
Byram, and the Duluth, MissaDe and
Northern, one of the iron ore car
riers, as well as various state rail
road commissions also were repre-
sented at the hearings.
Commissioner Hall Exp.asns.
Commissioner Hall explained the
commission was proceeding under
to prepare a consolidation plan that
would combine all the major rail
roads in the United States into eigh-
teen or twenty great regional sys-
TENS. The commission, ne said, had
tentatively proposed in the north
west to separate the Great Northern
from the present Hill" group, and
combine it with the Chicago Mil
waukee and st. Paul and thus create
two strong systems in the same ter
ritory.
However, the commissions plan
is not to be taken as a prejudgment
of the situation" Commissioner Hall
declared. 1T represents. an attack
at the general problem and a basis
for building up the fullest. record of
fact and argumen (which the com
mission can elicit to aid it in de-
cisions and the eventual action will
be dictated by findings from the rec
ord"
Hines Opposed To Plan
Mr.. Hines proceeded directly to an
argument for the setting aside of
the tentative plan. 1t was expected
he would be followed by Hale Hold :
en-, president of the Burlington,
Charles Donnelly, president of the
Northern Pacific, and Ralph Budd,
president of the Great Northern,
Louis w. Hill, who has succeeded to
direction of affairs of the late ]. ].
Hill in the organization of the three
corporations was present but did
not expect to testify.
The Burlington, Northern Pacific
and Great Northern" Mr.. Hines de-
claed, appear for the purpose of
showing that the general public in
terest as well as the legitimate in :
terest' of those three companies re-
qulre that the lines owned and con
trolled by them should be placed in
the same group. Their interdepend- :
ency is not only one of the great
existing facts in the railroad situa
ton but it is a situation which
has been the outgrowth of planning
of the ablest pioneers in railroad de- :
velopment. Prosperity of the three
companies has been due to the real :
ization of his early planning"
Mr.. Hines sketched brief history of
the construction and financing of
the corporations concerned, ex-
P'oih!hS IndI liLc DuIlluSIOu SUOCk
had been purchased in 1901s by the
ment from a policy of joint opera
ton and joint use of terminals
which the three compares mutually
had adopted as early as 1886. The
actual purchase of the Burlington
he treated as Simply further step
in the realization of the idea of
handling through traffic by those
lines" which had been in the minds
Of their original builders.
One Important Problem
1--WE will show from the public
standpoint" Mr.. Hines said, "the
results of the closer and closer
realization Of the plan, and through
President Holden of the Burlington,
will show the physical and traffic
situation of the Burlington, its re-
lation to the Northern Pacific, and
Great Northern, its dependence
upon interchanged traffic the in
furious effects which would follow
il the tentative grouping Of the
W estern roads should become effec-
tive in fact, and the beneficial re-
suit of the Btslington. Northern
Pacific and Great Northern were
grouped together" N.'
Mr.. Hines indicated that some of
the evidence to be brought out by
the corporation here presents ould
suggest some other method of treat
ing the Chicago, Milwaukee and st.
Paul.
1--WE realize that one important
problem is to provide a satisfactory
grouping for the st. Paul." Mr..
Hines said, "but it will further ap-
pear in the course OF, the commits
sion's hearings that other relations
of the st. Paul problem are practi-
cal" ....
Heavy losses are in prospect, if it
is divorced from its present asso-
citation. with the Northern Pacific
and Great Northern.