The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1929-12-30
Railway Consolidation Obstacles

k:llWaV IOllSOlluuIlOI ODSClNlIS
The Interstate Commerce COMMISSIONS proposed con-
solidation Of the countrys railway systems lh'o ~
regional groups, with the 500 Line and Vermont Cen
tral-controlled by the Canadian Pacific and Canadian
National-leit to themselves. Is proving a trial BALBOA
It has aroused a diversity of opinion, mostly hostile anc
with few approving comments. Even those were on
specified groups. rather than on the general plan, ior
III some OF the consultations the commission coinc!deo
with the desires Of the roads, such as Tn" Van swear
ingen lines and largely 80, III the 3. ana y. grouping.
The communication from Representative Bur'ness
printed in Tho Tribune Saturday, dissenting from ihe
commissions plan and favoring new legislation dealing
with the problem, is a symptom. apparently, OF the Seh-
cral feeling aroused in congress, where proposals for
such new legislation arc already on the calendar. IN
fact. with the reconvcning of congress after the hoh-
days, this very subject will be taken up.
There is a difference of opinion whether the Interstate
Commerce commission has the requisite power under the
TRANSFORMATION act Of 1920 TO compel the consultations II
proposes. Senator Watson, Republican leader. THINKS y
has. but Senator Tess. who is promoting another proposal
in conjunction with representative Parker. of New York,
believes the commission is cs.opped from authorizing any
form OF consolidation.
There seems to be no present widespread disposition
in congress to consider making the commissions proposal
compulsory. Each carrier Is privileged TO dissent from
any part of the plan affecting itself or to suggest modi-
fications which will enable it to accept the .colnmissions
grouping.
AS lar rs tic mouse Is COnccrncu. HCdTlIsS VIII W
begun by the interstate commerce committee next
month. on the subject of consolidation. The committee
desires to get its facts and make a report before similar
action can be taken by The interstate commerce COM
mlttec Of tho senate.
Two bills dealing with consolidation, virtually ldcn-
teal III character, one introduced il the last congress BY
Senator Fcss. which probably will BE- presented soon
il a modified form. and that introduced IN May BY
EcprM cntativc Parker. arc expected to form tho basis OF
cry consolidation legislation that may be attempted III
the current session.
Each of the bills Is pormissivc III character and docs
not propose that any form OF unilication shall be en-
forced upon tho railroads.
Consolidation conferences will be made tho program
Of the railroad executives while congress is considering
the commissions plan. Such conferences were aban-
doned IN 1923 when the executives reached a deadlock.
1t was said that the commissions plan was Of such
a nature that it left plenty OF opportunity for bargain
ing between railroad heads. Five trunk lines visuali:cd
by the plan are given roads which they desire and also
{ some that they might not desire.
! Thus the Wabash, which is given more railroads than
It bid for in its petition of last summer was alocatcd
J the Scaooard Air Line, a property which suffered from
i the collapse Of the Florida boom, although it recently
strengthened its financial structure.
9 The railroad executives at their coming meeting Will
attempt to lay tho basis for q united front to the com
mission.
The chief interest for the northwest is in tho proposed
consolidation OF the Great Northern and Northern Pa
cifc. That consolidation was applied for. but With the
4 Burlington system, another Hill line, included. The plan
of the commerce commission. however. omts the Burling-
! ton and makes 1t the nucleus OF another regional group
This deprives the two Northcrns OF their Chicago conncc-
tions and forms them into a system having common ter
minal points at both their eastern and western ends. The
chief detectives gained by this consolidation. it would
!, seem, Is In decreased overhead. as a result Of possible
& economies. and in assured large revenues and net earnings
I There does not seem to BE- any special gain in the
- commission Olan of brinrinv widely Scnarafed nointS infn
I contact as part Of one system OF rail service, as freight
rates likely will remain the same as If they we're OH
a separate systems. What would be all advantage in the
& proposed consultations would be to unite profit -makins
!; roads with those which arc merely breaking even or
: running Into deficits. Contisuity would have to be a
factor In this. however. In that case the profitable lines
J. would have q moral obligation to assent to the mergers.
:. Then the element OF competition must be retained also
And future waterway development. with its competition
Y should be taken into account. There may be less carr
& in thrusttng an existing system into territory far out
4 Of its present area than in building it up in its OWL
= region.
The goal now to be driven at is to shape the commits.
+ c.on plan into . practical grouping. The country has
!. cot to the stage where hapha2ard railway building is nc
y longer wisdom. Such investment Of capital should no.
v y: duplicated for mere selfish competition. The nation
! needs orderly rail systems based OF the idea of service
Tor the same reasons that would apply to the constrrc-
ton Of new lines, those existing should be formed into
Y ry5tcn3 BY regional groups. as proposed. And these
groups should be SO consolidated that the provision Of the
transportation act guaranteeing their profit should work
y O.. Il might be well to maize q beginning BY allowing
Is t6oee consultations on which the commission plan and
= ~ deGree u the roads coincide. In this way the prob
- q consoldation might be reduced . bit and made
- pnwteldly for congress. the commission and the roadl
~ handle - they Jointly take up the task Of work.,l
- > Nnal railway map for the country.
~ nuGdan government has prohibited the possession
X#&4A~AL-lA 49, R~~aM - 49, - 80 -~~ 49,
lo A1 vocld - m6rs popular.
mosek - esey 49, peoDie ~ PIT II 3ail. says
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