Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1929-02-20
HUGE MERGER

Continued from page one.)
only partly Van Sweringen owned,
and five lines now entirely indie
pendent, the Virginian. Lacka-
wanna, BeSSemer and Lake Erie,
Pittsburgh and Shawmut, and the
Pittsburgh, ShaTmut and Northern.
Over 1900 Miles Of Line
The single rail system to be thus
created would operate roughly l3, 1000
miles OF line, and would represent
q capital investment of $500 ,000,-
600. Further. the commission was
asked 10 secure for such q huge
enterprise the right to buy a one
fourth interest In the Delaware and
Hudson, Lehigh and New England,
Pittsburgh, Charters and Youghio-
gheny, Charters Southern, Monon-
gahela. Pittsburg and West Virginia
lines east Of the Ohio. and the west
sile belt of Pittsburgh. The sys-
TENS named we're all treated as
bridge or terminal properties, and
il was suggested that the New York
Central. Pennsylvania. and Balti-
more and Ohio would also acquire a
quarter interest in the properties.
The Baltimore and Ohio request
ed permission to purchase the Buff
falo. Rochester and Pittsburgh. the
Detroit. Toledo and Ircnton. and the
Indianapolis and Louisville, the
Wabash. the Ann Arbor, and the
Buffalo and Susquehanna railroads.
IL also asked permission for COM
plete ecquisition OF the Western
Maryland. the Reading, the Central
railroad OF New Jersey and the Le-
high and Hunson irver.
As to the Pittsburgh and West
Virginia lines west OF the Ohio, the
Van Sweringen group was slated TO
take a third interest. in partnership
with the New York Central and the
Baltimore and Ohio. The Detroit
and Toledo shore lire was suggested
for half and half division between
the rev merger and the Baltimore
and Ohio.
Take in Short Lines
Coupled with the specific listing
OF larger roads, was a declaration
that the Chesapeake and Ohio. II
allowed to proceed with so extensive
a linking, would stand ready TO &C
quire. If the commission thinks II
advisable. every short line railroad
in the territory covered. excepting
such short lines as might be as
signed To other systems.
The commission was also request
"a to approve the acquisition by the
Baltimore and OHIO OF q quarter IN
tCrest In four other railroads. the
Lenigh and New England, the Mon
tour railroad. the Pittsburgh and
West Virginia. the Pittsburgh,
Charters and Youghiogheny and O
half interest IN the Detroit and To-
ledo shore line railroads.
The petition said that with the
completion OF the purchasing pro-
gram outlined the Baltimore and
Ohio would operate 1884 miles OF
trunk line railroad with a capital
investment Of So 2.000,0 600.
The applicant believes 1t imprac-
ticable If not impossible to submit
terms and conditions on which these
properties would be acquired" the
Van S%weringen petition said. until
the commission first determines 70
what extent such acquisitions will
be in the public interest and pre-
scribes rules and regulations under
which the applicant may proceed TO
contract for the acquisition. . . .
Eliminate Speculation
IF the commission will determine
10 what extent the applicant may
unity these properties into one sys-
tenn. the applicant believes ii will
remove railroad properties in the
eastern territory from the field OF
speculation. bring about the finan-
cial sterilization of those railroads.
and result in bringing into fruition
the national policy Of railroad con-
solidation."
While the program outlined con-
templates the general recaSting OF
the eastern rail map on the prlnci-
pal Of creating four systems III the
country's northeast quarter, 1t was
expected to signal a major contrC-
versy among the railroad groups
concerned. The Baltimore and Ohio
has petitioned for a grouping not
conflicting with the Van Sweringen
plan, but the New York Central and
Pennsylvania may advance more or
less diverging plans. IL was sig
nificant that the Buffalo, Rochester
and Pittsburgh. now Van Sweringen
owned. was not enumerated in to-
days petition for inclusion, but a
statement accompanying the petition
said that this line might be allo-
Gated to the Baltimore and Ohio
and New York Central.