Evening star., 1925-11-22
COOLIDGE RAILWAY
PLAN IS OPPOSED
Compulsory Mergers lnadvi-
sable Now, |. C. c. and State
Utility Experts Declare.
BY j. RUSSELL YOUNG.

Before the desire of President
Coolidge for consolidation of railroads
of the country, so that the weaker
roads could be absorbed by the larger
systems, may be fully realized the
Esch-Cummins railroad act must be
modified substantially. This was the
substance of an opinion upon the sub
ject of consolidation given TO the
President yesterday by delegation
representing the Interstate Commerce
Commission and Public Service Com
missions Of the States.
1t was learned upon good authority
that the President has been informed
that the Interstate Commerce Com
mission is unanimous in opposing any
legislation that would attempt TO force
railroad consolidation. at least not Tor
the present. The commission thinks
the railroads should be given several
years in which to effect mergers be-
fore the Government should think or
making the matter mandatory.
However the real nature OF the
recommendations to the President by
this delegation yesterday were not
made public. A spokesman for the
President did say later that the topic
of discussion was future railroad
legislation and that members of the
delegation believe changes in the
present railroad act will be necessary
20 make voluntary consultations
possible any time in the near future
Coolidge Views Known.
President Coolidge is known to be
extremely anxious TO see the smaller
and nom paying transportation lines
linked up through consolidation with
the more powerful systems. lie con-
SiderS this as being necessary to save
The weaker lines and to make posi-
BILE readjuStment of freight rates.
He has made known his opinions re-
gardinS consultations on several
occasions. and 1t is understood that
he will devote a section in his forth
coming message to Congress 10 this
subject.
The President is known to view the
transportation question as one of the
really important domestic problems at
this time. He expects it TO be one OF
the paramount questions that will
come before the next Congress. He
has held number of conferences with
Senate and House leaders during
which the subject was discussed in
much detail. 1t was following one of
these recent conferences with the
Executive that Senator Watson OF
Indiana said that railroad legislation
would occupy an important position
upon the administration legislative
program and stated that the trans
portation act would be amended so as
to permit voluntary consultations for
the next six or seven years, after
which they would be made mandatory.
Representations upon the subject
made afterward by a spokesman Tor
the President indicated that Senator
Watson was rejecting the President s
views.
Cummins Favors Delay.
President Coolidge lately has been
advised by Senator Cummlns OF
Iowa co-author of the Esch-Cummlns
TRANSPORTATION law. who has been ad'
yocating compulsory consultations,
that he is willing now TO agree 10
amending the present law so as to
give the roads ample opportunity 10
merge voluntarily. He also has told
the President that the railroads a $ a
whole are operating at Il profit, that
some of them are making more money
than should be permitted, while
many of the weaker lines are losing
money, and that these should be con
solidated as means of saving the
weaker lines, thereby making unnec-
essary the abandonment OF about
so 600 miles of track.
Those who attended the conference
at the White House yesterday were
Judge c. c. McChord of the Inter
state Commerce Commission; William
D. b Ainey and James s. Benn OF
the PENNSYLVANIA Public Utilities
Commission: A. G.. Patterson, chair
man of the Alabama Public Utilities
Commission and president of the Ma
tional Public Utilities Commissioners
and H. d. Wells of the Massachusetts
Public Utilities Commission.
The Interstate Commerce CCmmis
sion has made a comprehensive study
of the consolidation question. 1t has
gone thoroughly into the plan pro,
posed by Prof Ripley of Harvard Il
serve as a tentative basis for general
consolidation, and it is understood to
favor the general principles at this
time.