Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-12-31
HOOVER STATEMENT
ON RAIL MERGER
HELD "UNETH|CAL"
Couzens Makes Charge With
out Committing Himself For
or Against Plan.
BELIEVES |. C. C. POWER
TOO GREAT UNDER LAW
B. & 0. Head Thinks Three or
Four Months Necessary for
Final Action.
BY G. GOULD LINCOLN.

for or against the proposed consolida-
ton of Eastern railroads, Senator James
Couzens of Michigan, chairman of the
Senate Interstate Commerce Committee,
issued a statement today declaring that
President Hoover's announcement Of
the consolidation plan was most I'M
ethical"
The Michigan Senator said that he
believed the law at present gives the
interstate Commerce Commission far
too great power.
He would have the Congress approve
finally any great merger or consolida-
ton of railroads.
s Senator Couzens is author of joint
resolution, passed by the Senate but
awaiting action by the House which
would halt all railroad consultations
such as that proposed until Congress
could have something more to say on
He admitted, however, that he saw
no prospect at present of his resolutions
being finally put through Congress and
approved by President Hoover.
willard Discusses Merger.
President Daniel willard of the Balh-
IIlOIG q O1uO E6d4IOd0 CdAlGo uHOl
Senator Couzens to talk over with him
the agreement for consolidation entered
into by railroad executives for the
! creation of four great competing rail-
road systems in the East, exclusive OF
New England
Senator Couzens said he did not re-
ceive the details of the plan from Mr..
Willard and until he knew the details
he would not be in position to pass
finally on it.
Mr.. willard, Senator Couzens said
had told him that the agreement SO
far had not been signed by the railroad
executives, but was a "gentlemen'S
agreement, which would be put in writ
ten form and transmitted to the Inter-
state Commerce Commission for its ap-
proyal as soon as possible.
Mr. Willard was of the opinion that
not more than three or four months
would be necessary to get final action
on the consolidation plan" said Sem
ator Couzens.
Consolidation Only Hope.
Senator Couzens said that the presi-
dent Of the Baltimore g. Ohio Railroad
had expressed the opinion that the only
way the railroads could hope to reduce
rates, in view of the competition of mo-
tor trucks and motor buses, was through
consolidation.
Mr.. Couzens also quoted Mr.. Willard
as saying that there was to be no dis
charge of labor by the Baltimore g.
Ohio Railroad in the event of the con-
Solidation going through, and that a
memorandum to that effect would be
attached by his road to the petition
which was submitted to the Interstate
Commerce Commission. Senator Couz-
ems said that Mr.. Willard was speaking
for his own road and that he, Senator
CouzenS, did not know whether the
such pledges also.
The Michigan Senator, however, said
that Mr.. Willard had agreed that 80
per cent of the reduction in costs to
the railroads would "come out of labor 1"
This, he said, did not mean the dis
charge of labor or reduction of wages,
but would be effected by not adding
new men when old employees died or re-
tired. Senator Couzens took the view
that in the end the consolidation would
mean reducing by many thousands rail-
road labor.
Congress Should Have Decision.
Discussing his contention that Con-
gress, not the Interstate Commerce
Commission, should have the decision
on railroad mergers, Senator Couzens
said:
Congress gives to the Interstate Com
merce Commission too much power. It
authorizes the commission when 1t be-
lieves that 1t is In the public interest,
to set aside the antitrust laws and to
approve great consultations of rail-
roads. Congress should reserve these
powers to itself 1t win not delegate to
any commission the right to tx the
duty on toothpicks.
There is no public debate of these
great questions among the members of
the Interstate Commerce Commission
as there is in Congress. After the IL
commissioners hear the arguments in q
proposed consolidation they retire be-
hind closed doors to discuss II 1t is in
the public interest or not to approve the
petition. sThey vote their conclusions
in privacy"
He said that the commission instead
should make report and recommended
tionS TO the Congress for the latter's ap-
proval.
COuzens' Statement.
Senator Cou1ens issued the following
statement regarding the proposed con-
solicitation of the railroads and the
Presidents announcement thereof:
Yesterday the President issued a
statement supporting the plan for con-
solidation of the railways in official
classification territory Except New Eng
land) into four different systems ar
ranged by the representatives Of the
Pennsylvania. New York Central, Nickel
Plate ana Baltimore & Ohio Railroads
This in spite of the fact that the Sem
ate on May 81, 1880, adopted resolu-
ton to suspend all railroad conSolida-
tons under certain conditions by a vote
OF as to 81, with % not voting. This
resolution went to the House, where II
was reported by the Committee on In
terstate and Foreign Commerce In
amended form, and Is now on the House
calendar. This, in my judgment, in
dictated the Congress was not in favor
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