Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-12-15
RAIL MERGER PLAN
|. is EXPECTED SOON
Wall Street Hears Report OF
|. C. C. Is to Be
Published.
specIal Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, December 14-There
was a report current in Wall Street to-
day that the Interstate Commerce Com
mission would release its consolidation
plan for publication between the closing
CT business and the opening of the
Stock Market on Monday. On several
occasions the commission has adopted
this plan, especially when 1t had i'm
portant decisions to give out in rate
matters.
Washington advices today were to
the effect that an immediate announce
ment from the commission was unlikely.
The rumor was responsible for a
strong market during the days session
in railroad shares. Wall Street has been
looking forward to the consolidation
plan as one Of the influences that might
be helpful to stock speculation and
would produce a new group Of market
leaders.
Recovery in Rails.
The rails went through the greater
part of the big bull market without
making much response to the Specula-
tive enthusiasm of the public until late
in the Summer, when the investment
trusts and trading corporations began
buying them exclusively and pricess Snot
up quickly. Then quite a number OF is
sues exceeded their old highs made In
the big railroad markets 25 years ago.
In the october and November declines
rails dropped an average of over 30
points at the same time that the aver
age of industrials and public utilities
declined nearly 25 points and the gen.
eral average of the market so per cent.
Today the rails are about 81 points
up from the November low range, while
he n
amounts to around 10 points.
From market standpoint the inter-
state Commerce Commission plan Will
have more effect sentimentally than IN
causing new purchases Of carrier shares
by groups to be recommended IN the
commission program. SUCH buylng as
was necessary to the formation OF these
groups has already taken place In large
part. Instances of this were the acqur-
ing of control of the Western Maryland
by the Baltimore & Ohio IN 1927, and
later the purchase of the Rockefeller
interest in the Wheeling g. Lake Erie
Jointly by the Baltimore & Ohio. New
York Central and Nickel Plate. Suisse
uuently the Pennsylvania railroad took
over the Loree holdings of the Wabash
and the Lehigh Valley and located them
with the Pennsylvania Company.
Recent Purchases.
The Van sweringens long ago COM
uleted their acquisition of Erie. Chesa-
peake 81 Ohio and Pere Marquette
stocks. The Pennroad Co., another
Pennsylvania Railroad subsidiary, has
within the past nine months bought out
Henry Ford's interest in the Detroit,
Toledo & Ironton and is said to have
purchased holdings in the Pittsburgh
& West Virginia and the Boston d
FTl,a T1N1k r. o
made a trade with the Nickel Plate
which has put it in possession of the
Buffalo, Rochester & Pittsburgh. These
have been the important strategic
moves in the Eastern territory that
were made in anticipation of the
groupings found advisable by the Inter-
state Commerce Commission.
In other sections of the country
there have been no important pur-
chaSes of the stocks of one line by
other lines since the Interstate Com
objections to plans for consolidation
affecting the Kansas City Southern, st.
Louis Southwestern, and Missouri. Kan
Sas-Texas. The Missouri Pacific group
ing has been practically completed,
and in its present form, recommended
to the commission by its own exam
liner. There have been indications
IrOm IlIne VI Iunc IAAdt SoHlC VI kAic
trunk lines were flirting with the Chi
cago Great Western and the Chicago
g. Eastern Illinois but nothing con-
crete has so far been divulged. Among
the transcontinental lines the status
quo has been maintained generally,
with the possible exception Of a fur
ther increase by the Union Pacific of
its holdings of Chicago g. Northwestern
common stock.
CO Far &C ,,noRHn;aJ renortc Shou
there will be no occasion for The resale
of stocks bought within the last three
years by the trunk lines as part of
their consolidation program. This also
does not involve any change in such
major holdings as the Pennsylvania
has in Norfolk & Western or the Balti-
more & Ohio has in Reading.