Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-08-05
RAILROAD MERGER
PLANS GOFORWARD
Congressional Initiative to
Set Ball Rolling Is Expected
in the Winter.
BY j. c. ROYLE.
spec;al Dispatch TO Tho Star.

Special Dispatch TO Tho Star.
NEW YORK, August 5.-Pressure
will be eXerted on the Interstate Com
merce Commission to further progress
on the proposed railroad consolda'
tons according to all present indica,
lions. 1t is likely that this pressure
will take the form of some sort of
congressional action when the House
and Senate assemble again next Win
ter. In the meantime, plans OF a
dozen groups of carriers are hanging
fire and are as potentially dangerous
as a Fourth Of July firecracker which
has failed to explode
For a time it seemed to many of
the railroad men that little could be
accomplished toward the completion
Of many mergers without distinctly
new legislation. Regulations with en-
acting clauses which would enable
either the Government officials or the
railroad executives to go ahead were
expected. 1t was learned on unques-
toned authority today, however, that
the heads of some of the larger sys-
TENS involved in the more important
tentative mergers prefer that action
shall come under the regulations al
ready laid down rather than under
new legislation. That would leave the
affair still in the hands of the Inter
state Commerce Commission.
Inquiry Is Expected.
The Interstate Commerce Commits
sion. however, is practically certain to
be called on through a joint resolu-
ton of the House and Senate, or a res
olution of the latter body to tell what
It has done in the furthering Of the
mergers, and what 1t purposes to do.
It IL not forgotten that the whole
tentative merger scheme and the
grouping of the roads was the pet
child Of the Interstate Commerce Com
mission itself and that body therefore
should be in a position to further the
plans most effectively.
Railroad men assert that all the
commission has done so far is to say
mo-" The Commissioners have con-
sidered plans and have returned that
answer without specifying what faults
were found in the plans or why they
objected to certain measures. The
men behind prospective mergers add
that no constructive suggestion has
CONS from the commission to aid them
in bringing the various roads under
new groupings.
It is hoped that a request from Con-
gress or from the Senate alone will
lead to an attitude permitting sugges-
lions of such a sort. Undoubtedly
the political world is watching closely
for something constructive from the
commission, since the merger idea.
sponsored in 1921, by the commission
itself, is regarded as an administra-
ton policy and one of those in which
adherents of the administration look
to see constructive progress made.
Opponents of the administration make
no secret of the fact that they do not
intend to pass by the situation OF
nothing constructive is accomplished
before the next campaign.
Il The matter, according to f1nanc1ers
and railroad men, has a distinct bear
ing on the Investments Of hundreds
Of thousands Of people.
Affect Stock Values.
{ The merger possibilities Of certain
roads have been so stressed as to at.
feet railroad investments and the
price of railroad stocks. Those NOV
ing for a merger say that unless
something is done soon many merg-
ers will be financially impossible,
since 1t will become too costly for
central system to buy or acquire con-
troll of a minor line incident to the
consolidation plan.
Some of the heads Of the great
Eastern systems concerned in pro-
jected mergers have talked things
over informally among themselves.
What they really would like Is to have