Evening star., 1927-08-28
RAIL WAYS FACING
MERGER PROBLEMS
Trunk Lines Seeking ConsoIi-
dation, With Agreement Ap-
parentIy in Dim Distance.
BY j. G. ROYLE.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, August 27.-The East
ern trunk line railroads are commenc-
ing to line up their plans in a further
effort to permit consummation OF the
proposed rail consultations.
Agreement. il is indicated, is still
somewhat far off. but at least the rep
reSentativeS of the five systems affect
ed are making an effort. as exclusive
ly forecast in these dispatches two
months ago, to arrive at some plan
which will meet with the approval OF
4 the Interstate Commerce Commission.
So far the lineup of the roads is
unchanged. On one side are the New
York Central, the Baltimore Ohio
and the Van Sweringen system; on
the other, the Pennsylvania and the
Loree roads. The feeling between the
factors is very marked. AT first II
might seem the details of plan which
all would agree to might be difficult to
arrange. But all want some kind OF
readjustment, and they all realize that
If the matter is too long delayed the
= acquisition of the necessary small
roads will become so expensive as TO
be almost prohibitive.
Stocks Uuduly High Is Belief.
There are roads today which rail
road men say are selling on the stock
market at prices totally unwarranted
by their Importance and earnings
merely because they have merger pos
sibilities. None of the systems named
above desires to enter into a bidding
contest for these smaller roads. More
over, they feel that the fluctuations in
stock prices which might result would
have a most untoward effect on public
sentiment. Consequently, although the
gap is wide between the New York
Central the Baltimore & Ohio and
the Nickel Plate, on the one side, ana
the Pennsylvania and the Delaware
and Hudson, on the other, Its closing
is not an impossibility.
The first three declare there is no
need of a fifth trunk line such as
I. F. I,oree proposes and that the
PENNSYLVANIA is complete in itself and
requires no additions The Pennsyl
yania and the Loree roads contend
that such merger is essential to cut
down the distance on shipments from
Buffalo to New York, which now run
south as far as Harrisburg, and also |
demand other plans.
Give Inside View.
Men close to the situation assert |
that the heads of the Nickel Plate, the
i
& Ohio do not place such extreme i'm |
portance on the blocking of the plans
for the proposed Loree system as they |
do on the distribution Of the control |
Of the smaller roads which honey |
comb the country between New York |
and ST. Louis They also place eX- |
treme importance on getting some |
thing definite done. So, far the Inter |
state Commerce Commission has con- |
fined its rulings on mergers to sim |
gle word, NO" 1t has not signifled |
what plans will meet with its approval
or how the plans already presented
must be changed to come within the /,
fold.
The majority Of live systems are
working from the other end opposite +.
to the Pennsylvania and the Loree
road. They are trying to arrive at
plan which will distribute the small |
er feeder lines in such way as to be |
satisfactory to all. They think that |
with that problem out Of the way, the |
way may be cleared for a better un
dersta nding of the main line situation.
Concessions Held Probable. ]
In the meantime none is prepared
to say that concessions will not be
made on all sides, although all are
putting up front of stiff opposition.
On paper at least the Van Sweringens,
President Crowley of the New York
Central and President Willard of the
Baltimore G. Ohio would seem to have
the majority vote as compared with
President Atterbury' of the Penpsyl.
vania and President Loree Of the Della
ware & Hudson in any conference
&hey might arrange.
y There is always a possibility that
the conference idea may be abandoned
by one side or the other.