Evening star., 1924-01-13
RAILROAD MERGER
. ARGUMENTS CLOSE
Final Step, Drafting Plan for
18 to 20 Consultations,
Awaits Committee.

oTdl III TIE UldIISI VI
general consolidation of railroads,
the last stage but one in a three
year Inquiry Of the Interstate Com
merce Commission into the subject.
was concluded yesterday. The final
step. the reporting to Congress of a
plan by which all the major rail-
roads of the United States may be
fused into eighteen or twenty great
mergers. will be taken whenever the
membership of the commission
reaches conclusions upon the general
project and the series of contro-
versies arising out Of it.
Among the last to appear before
the commission in arguments on the
question was the National Industrial
Traffic League. which urged through
J. S. Burchmore. its counsel. that the
commission refrain from advising or
recommending any further steps by
the government in the consolidation
enterprise.
Tentatively, the commission, with
the advice of Prof. w. Z. Ripley of
Harvard. one of its experts. has laid
out a plan calling for creation of
some twenty mergers, each one of
which is grouped around one or two
of the existing larger railroad sys-
1t has been suggested that all rail-
roads be placed In one group.
Leaders Views Sought.
Views have been elected from
axarntivas and fpaD
ciers, and from representatives of
communities and states during pro-
longed hearings. held in all parts
of the country. Railroads concerned
have indicated sharp opposition TO the
tentative plan in two cases, one IN
the northwest, where the Hill group
has objected to severing the Great
Northern from the Northern Pacific,
and the Chicago. Burlington and
Quincy. The commissions plan sug-
gested that the Great Northern be
placed with the Chicago, Milwaukee
and ST. Paul in a new consolidation.
In the east, the sharpest difference
has developed by conflicting demands
of the Baltimore and Ohio and New
York Central for control of the Gen.
trail railroad of New Jersey and iden-
Reading. Minor disagreements have
also been indicated as to disposition
of the Mobile and Ohio in the south.
and a number of other lines, while
Missouri valley interests have
strongly opposed any consolidation
effort
Under the law railroads are not re-
quired to take any step to make the
plan effective, even after its adop-
ton by the commission, but if they
desire to do SO the transportation
act withdraws the ban of the anti
trust laws against consolidation of
parallel and competing roads for the
purpose. President Coolidge has also
urged that legislation encouraging
and facilitating consultations under
the plan be enacted.
Argues Against Consolidation.
Plans of the government for rail-
road consolidation were attacked be-
fore the commission yesterday by
Clyde NJ. Reed, chairman Of the Kan
sas utilities commission. Speaking
not only 1OTl1nlS SIdte, Out Also as a
special representative for central
western cities, he declared the Mis-
souri, valley residents were Sub
stantially unanimously opposed to the
wholesale consolidation of railroads.
To-day the railroads. unconsoli-
dated, are more efficient than at any
time in their history" he said. Every
proposition which Secretary Hoover
has laid down as demanding consoli-
dation, and every dark prophecy of
their first postwar year as to on
coming railroad incapacity has been
absolutely and unqualifedly disproved
by the great section of the country
I represent, and indirectly in the in
terest of the people as whole, urge
that before the commission takes the
final step and commits itself to what
we believe an impossible program
that it develop Affirmative ground for
the revolutionary procedure pro-
posed"
cation in the House took q hand In
the arguments yesterday by adopting
a resolution expressing the sense OF
twenty-four of their number that the
philadelphia and Reading railroad be
left independent in the consolidation
plan and not joined with either the
New York Central or the Baltimore
and Ohio.