Evening star., 1929-11-29
RAIL PLAN VERDICT
MAY Be ADVANCED
Date Has Been Set for Jan
uary !, but Decision Sug-
gested Sooner.
BY CHARLES F. SPEARE.

Special Dispatch to The Star.
NEW YORK, November 29.-The date
fixed for the release of the Interstate
Commerce Commissions plan Of rail-
road consolidation has been January l.,
but it was suggested that as a means
of strengthening confidence and per-
mitting railroad executives to map out
expansion programs 1t might be an
nounced sooner. The estimate has
been made that nearly $l,000,000, 900
of new capital is being held up as
result of merger uncertainties.
There are also intimations that cer-
tain stock market situations develop
ing out of the october and November
break in prices may change the atti-
tude of interests that have been adVo-
eating a fifth system in the East.
Favors Five Systems.
There are strong advocates within
the commission both for four party
plan and for one which would recog-
nize the right of a fifth system to be
formed in the trunk-line territory.
Commissioner Lewis is strongly in ia
vor of five systems. With the Wabash
and Lehigh Valley forming the basis for
A merger which would come into COM
DGLlGlOH Will V4AC RACSChb ACaA
represented by the Pennsylvania, New
York Central, Baltimore & Ohio and
Nickel Plate roads, the fifth system
would supplement the existing Pennsyl-
vania lines for control of the wabash
and Lehigh Valley, is held by the Penn
eylvania Co.. and there seems to be little
doubt but that the Pittsburgh q West
Virginia ownership has recently been
transferred from the Tapllns to the
e DnvaArRad IN There
js still much difference Of opinion
among members Of the Interstate Com
nerce Commission whether they have
any Jurisdiction over stocks OF COM
pefitive railroads whose ownership Is
vested in holding companies.
The four-party plan came nearly TO
the point of consummation few years
ago. Then q breakup occurred, Wnlcn
widened the differences of groups and
led to acute rivalry between those who
had been nearly unanimous In their
idea as to what would best serve the
Eastern territory. It is believed that
with some outside leadership and more
craftsmanship than has so far been ex-
hibited the four major systems could
be brought back to the point where
their representatives could again SIT
down together and make concessions to
each other which would result In
peaceful settlement. 1t has been sug-
rested that a good plan would be for
the heads Of the four Eastern systems
to confer with the Interstate Commerce
Commission prior to the publication OF
the commissions consolidated plan and
try and effect such readjustments as
would be satisfactory to the commission
at that time instead Of waiting for the
Official merger plan to be promulgated.
Among railroad men the general feel
ing is that the Eastern situation would
be permanently improved by a four
party plan that would bring the various
existing systems up to about parity
with each other in the way of entrances
into competitive centers and also with
respect to the amount of mileage in
each group. AT present the Pennsyl-
vania overbalances in. both these re-
spects the Baltimore & Ohio and the
Nickel Plate.
It is frankly recognized that If fifth
system is permitted there will be an
even greater overbalance in favor of the
Pennsylvania Raifroad-inasmuch as 1t,
to certain extent dominates the Wab-
ash, Lehigh Valley and Pittsburgh &
West Virginia, and indirectly the Wheel
ing g. Lake Erie, which are the main
parts of the proposed fifth line.
Issue TO Be Revived.
The psychology of the present indus
trial situation would seem to favor such
q conference for the main effort OF the
administration is to bring about CO.
operation between large groups OF capi-
tai and through this lessen the disturb
ing effects of the Wall Street collapse.
The last session of Congress gave no
recognition to the railroad consolidation
situation. This subject is expected to
be a live issue after Congress resumes
its sessions next month.