Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-03-11
NEW RAIL MERGER
IDEALA|D TOLOREE
Would Unite His interests to
Pennsylvania System Is
Rumor Received Here.

A new alignment of railroad tinan-
cial interests opposing the Nickel
Plate Chesapeake & Ohio consolida
ton on the one hand and proposing
an entirely new consolidation or IN
terests tying together the Pennsyi-
vania Railroad and the holdings OF L.
r. Loree in the Lehigh valley ana
the Wabash, appeared probable To-Day
on the basis OF word coming 10 the
Capital that the I4oree- Pennsylvania
interests have a scheme for creation
OF a New York st. Louis line which
NAV reach the Southwest through the
Ioree interests i'm that section of the
country.
At the same time the rumors con-
Meeting Mr.. Loree with the PennSyi
vania appeared to set UP railroad
financial combinations involving the
j. L. Morgan and Kuhn, Loeb groups
i'm opposition to each other through
the interlocking ramlhcatlohs Oh
boards of the railroads involved.
The new consolidation scheme, as re-
ported, setting up a fifth midwest
eastern railroad consolidation in add
ton to the four already proposed by
the Interstate Commerce Commission,
appears TO definitely align the Loree
interests with those Of the Pennsyl-
vania. represented by Kuhn, Loeb
against the Van Sweringen Nickel
Plate and New York Central interests
represented by the international bank
ing house of j. +. Morgan and COM
pany. Out of the rumors came the
theory that Mr.. Loree now appears
as a new railroad consolidation giant,
taking the place of the Harrimans
and Hills of other days before the
establishment of the Interstate Com
merce Commission.
Move Not Formally Made.
A consolidation proposal to tie to.
gether four Southwestern lines, all
now controlled by the Loree interests,
is now before the commission for de-
cision. The new proposal, to create
another line between St. Louis and
New York, has not been formally laid
before the commission even though
rumoGs have persisted for several
weeks that the Loree-Pennsylvania in
terests contemplate this step.
The unyerified rumors have it that
MIR. Loree, president of the Delaware
& Hudson, chairman of the boards of
the Missouri, Kansas & Texas. known
as the Katy" and the Kansas City
Southern, will turn over the Lehigh
Valley to the Pennsylvania in return
for assistance by the Pennsylvania in
securing Lackawanna Wabash
through line TO Kansas City through
st. Louis. Such a consolidation would
have the effect of joining New York
directly with the Southwest over a
Loree-controlled road.
Although the commission last year
held that the Nickel Plates Chesapeake
o. n
tn the public interest, it disapproved
the application of the Van Sweringen
group on the ground of improper
financing. The Van Sweringen inter
ests are now supposed TO be working
on another consolidation scheme en-
bOdying many of the physical aspects
of the old proposal, but with changes
In the financial operations OF the
merger.
Rail Option Expired.
Mr.. Loree two years ago secured q
two-year option on the Buffalo
Rochester 4 Pittsburgh, running
from Pittsburgh TO New York and
connecting through Pittsburgh witt
his Delaware & Hudson lines, which
might have given him much the same
alignment he now is said to be seek
ing. This option expired at midnight
February %, and the board of the b
r. & r. declined to renew IL.
When the scheme will be laid before
the Interstate Commerce Commission
If at all, is conjectural, and certainly
II cannot be known whether the com
mission would favor such a scheme
The suggested merger is not in line
with the proposals of the commission
for consolidation of Eastern and Mid.
western roads to form a powerful
railroad group in those sections o.
the country. Great activity in the
stock of the Wabash for several weeks
past. during which ii rose to about
20, dropped to IS, and is now around
70, appears to be in part the basis fol
some of the rumors Mr.. Loree, OF
his interests, are supposed to have ac-
quired about 81 per cent of the stock
of the Wabash.