Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-12-06
|. c. c. SCORES RAIL
HOLDING CONCERNS
Specifically Names Pennroad
and Allegheny Firms
in Annual Report.

The Interstate Commerce Commission
in its annual report to Congress recon-
mends legislation to deal with large
holding corporations which the COM
mission believes may defeat the purpose
of the plan for orderly" consolidation
Of lines. This plan the commission
hopes to complete before long.
The commission names specifically
the Allegheny Corporation, a Van
Sweringen organization and the Penn
road Corporation. majority stock OF
which is owned by stockholders OF the
Pennsylvania Railroad, as two COM
panies apparently effecting virtual con-
solidation through common control OF
afiliation." "It seems clear" the report
said, that the acquisition of control OF
an amount of stock sufficient to inf1u-
ence the policies of competing railroads,
either by individuals or by non-carrter
corporations, may result in the suppress
sion of competition in manner no less
harmful than if such control be eXer-
ciSed directly by one carrier over an
other"
Need Consent of /. C. C.
Under the Clayton act railroads are
prohibited from acquiring control OF
competing lines without the consent of
the Interstate Commerce Commission,
and the consolidation program now be-
ing drafted by the commission is de-
signed to facilitate indications in the
public interest along the general lines
laid down by the commission. BY use
of holding corporations, however, the
commission commended that 1.-The orderly
process of a carefully planned scheme
Of public regulation is very likely to be
partially or even wholly defeated, sub
Ject to the possibility that the Clayton
ANTITRUST act may in some measure,
after protracted litigation, enable con-
troll over the situation to be main
tanned"
No specific recommendation for legis-
lation was made by the commission. AS
Serting that difficult legal and perhaps
constitutional questions are involved,
the commission merely called the prom
lem together with its evident dangers,
to the attention of the Congress, ac-
companied by an expression of our con-
viction that it merits thorough consid-
Grafton"
Reports of Buying.
Beyond stating in the report that it
now has the consolidation question "ac-
lively before it" and entertains hope
that plan may be adopted and pub
lished soon after the converting of Con-
gress," the commission gave no hint as
to when the long controverted plan will
De maze PUBIC.
Under the plan the roads will be
permitted to consolidate, but would not
be compelled to participate. However.
after 1t Is published the burden of proof
would be placed upon the carriers to
show that they should be permitted to
unite in groups other than those di-
rected.
Imminence of the plans publication
after years of delay, has stirred railroad
circles recently and reports of larger
lines desiring to become key-lines in the
Eastern trunk systems buying other
roads in anticipation of the commits
sion'S report have been widely circu-
lated. One of the most widely pub
hshed of these was the report that the
Pennroad Corporation had purchased
a controlling interest in the Pittsburgh
& West Virginia, short line sought by
other lines in unification schemes.