San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1923-10-21
"BEST MINDS" NOT AGREED
ON MERITS OF PLAN FOR
RAILROAD CONSOLIDATION
Splawn Points Out Inaccuracies in Statements by
Senator Cummins and Shows That Some of the
Railroads and Others Who Have Financial
Interest Want Consolidation Brought About

But IL there is division among the best
minds, as there is, there must be some
thing to be said against as well as in.
favor of the proposal.
Some Big Roads Favor.
Now this statement that most OF
the big railways are opposing consol-
ida.iOn, likewise, should be examined.
He cites no specific instances. There
is merely the bald assertion, without
comment as though its truthfulneSs
were so obvious to every one as to
require only the merest mention of TIE
fact. The implication, too, seems to be
that if the railroads are opposed TO 1t,
the proposed grouping must, there
fore. be desirable. When we turn to
the record of the hearings before the
Interstate Commerce Commission, we
find some of the biggest railroads
either favorable or indifferent toward
consolidation. Such is the attitude OF
those who appeared for the New York
Central; the Pennsylvania System
the New York. New Haven 4 Hart
ford; the Baltimore & Ohio; the
Southern Pacific; the Santa Fe: the
Rock Island. The Frisco agreed TO the
particular proposals in the commits
sion's tentative plan. The powerful
Hill roads are out and out champion {
of consolidation. One of their ablest
executives has proposed four groups
for west of the river so as to suggest
system which would include all the
Hill roads. While the big roads arc
divided on the question, it is correct
to say that nearly all the short and
weak lines would like to see consoli-
dation. They want to sell out. and
| would like TO see such wholesale
! buying of small roads as a consolida-
ton would make possible.
Also the owners of non-dividend pay
| ing railroad stocks and of railway
bonds on which interest payments
have been defaulted, are usually fav-
orable to consolidation. They have an
organization, with distinguished
banker. Mr.. Warfield, at their head.
Mr.. Warfield is one of the most pro-
| life writer's and one Of the most per-
sistcnt speakers in support of CONSOLE
datiOn. These owners of nOn-earnins
stocks and bonds quite naturally
would like to exchange them for a
| type of security that would yield 4
more certain return. Those include
many financial institutions which
! have been caught with railway stocks
| ana DOnuS luuL DEllB uiCtlt tam III
| come. Some of this group are very
influential. The most Of them are in
entire sympathy with Senator Cum
Minis plan for compulsory consolidd-
ton. When he suggests compelling
consolidation by having the govern.
ment condemn the railroads, they lend
him support. Why shouldn't they
If the government enters upon such
an undertaking. it will in all PROB
ability issue its own bonds with
which to buy the roads from their
present owners. Now wouldn't it be q
good trade to exchange non-dividend
stocks or nOn-interest bearing bonds
for the bonds of the United States
government? The people could be
taxed to pay interest on government
bonds. The present owners of deDEe'
ciated railway securities could easily
free themselves of worry by Sc2s 4
bargain.