Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-12-23

Two phases Of national transportation
are linked In comment on the annual
report Of the Interstate Commerce
Commission to Congress; railroad con-
solicitations and waterway development.
The commission, the Springfield
Union observes. has acted freely under
one section Of the transportation act of
about 10 years ago to permit one car
rter to control another under lease or
by purchase Of stock, or In any manner
not involving an actual consolidation.
Much has been done in recent wears
along that line, but with the proviso
that when the time came for actual
consolidation the commission could dis
solve such connections, II public interest
required. It has been assumed, however.
that 1t has permitted such combinations
OF interest as may be consistent with
the development Of its plans for con-
solidation later on"
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Railroads themselves have from time
to time proposed consolidation" recalls
the Fort Worth Star-Telegram, but no
two groups have agreed. Each is natu-
rally looking to its own interests, and
there Is nobody but the commission to
consider the general welfare. In it's re-
port the commission states that while
many systems have endeavored to build
up consolidated lines by the expedient
OF going into the stock market and buy
ing the securities Of companies they de-
sire to unite under control, the Clayton
act forbidS purchase of one competing
road by another, and 1t has therefore
required such roads to 'divest them
selves OF stock acquired In others"
The ar-Telegram quotes the commits
sion's statement as to the more recent
YSNAfhNA ~ k,, as
trustees" and concludes, ut has never
been supposed that the consolidation of
the railroads into several great systems
along lines which would conserve the
interests OF the public and the carriers
would be an easy task"
1T Is apparent on its face" in the
opinion Of the Cleveland Plain Dealer,
that the commissions program cannot
be carried out II rail properties which
It assigns to one system are already con-
roled by another through q holding
company. And 1t is also clear that COM
petition may be eliminated or lessened
through the holding company and the
intent OF the law thus violated. The
years that have elapsed since Congress
directed the commission to promote rail
combinations in the interest Of better
service have indicated conclusively that
they can be effected only under the
most favorable conditions. For five years
the interstate Commerce Commission
sought to be relieved Of the task OF
formulating q definite program Of con-
consent Of Congress.
y y y
''The commission" according to the
Baltimore Sun, cannot compel accept
ance OF Its plan. but PRONUNCIATION of It
Will give opportunity to ascertain
whether 1t has succeeded In devising a
rearrangement Of the rail map which
the carriers win be willing to consider
as new basis for negotiation.
The commissions discussion of the Sc
rtous extent to which formation Of
stocks has complicated the situation is
the outstanding feature Of its report.
There rs no attempt to conceal the fact
that the consolidation program is very
likely to be partially or even wholly
defeated without authority which
will enable the commission to assert
control over these incorporating rail-
road concerns. If there is disposition
t TO deiy its authority protracted litiga-
The plan for consolidation, Il Il
pointed out by the Houston Chronicle.
retains the vital factor of Competition
1t calls for the establishment Of IA or
more great railway groups in the colln.
try, with about equal financial strength.
and about equal opportunity for pros.
pertng under the general rate structure.
but these groups are expected to be
very much In competition one with the
other. There will always be a great deal
Of territory where the roads must fight
for freight and passenger patronage.
The quality Of service they render viii
thus be kept q vital factor in their
prosperity" Referring to the commits