Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-03-05
Moves in Railroad Mergers
Create New Controversies

proved must remain theoretical and
tentative"
1.-THE issue now seems to be-" in the
Judgment of the st. Paul Pioneer Press,
solely whether the economies that may
follow from increasing the size Of rail.
road operating units are guficient to
Offset the disadvantage Of reduced COM
petition. Many of these economies are
purely theoretical; the elimination Of
competition is decidedly real. Nor does
it follow that all economies will inev-
itably be passed along to the public. It
is not established that mere bigness Of
a railroad system means more efficiency.
1t Is not established who gets the major
portion of the benefits of consolidation
economieS-the public or the sharehold-
ers. The public's interest today in gen.
eral rail consolidation is most obscure.
1t is asked to give up the benefits Of
sharp competition among the railroads.
1t must also be shown what it gets by
way of return. This is something for
Congress to reconsider"
The Portland Oregon Journal points
out numerous advantages which will
come to its territory including better
access to the Willamette Valley and
extension Of lines to billions of feet of
timber" as well as better contact with
the Hill lines and the Chicago, Milwaukee
& st. Paul system, and also comments:
But for the proposed divorce Of the
Burlington line from the merged Great
Northern Pacific and Chicago connec-
ton, and but for the opposition to the
merger by Eastman and McManamy,
two liberal and stalwart members Of the
commission, there would be full reason.
for local enthusiasm over the authority
granted by the Interstate Commerce
Commission for the union of the Great
Northern and Northern Pacific. Other
wise there should be value to Portland"
IF the Burlington is to be segregated
from the Hill roads," says the Lincoln
tNebr) State Journal, without receiv-
ing compromising advantages, the terri
tory served by the Burlington will have
been Disseminated against If compen-
sating changes are provided by the COM
mission, the loss may be minimized, re-
moved or turned into gain. 1t is in
what happens after the Burlington has
been divorced from present trafflc con-
nections that this territory must show
its concern. The readjustment
will cost a great amount, will in some
degree change present routing of trafic,
may affect the market places of pro-
ducers, and may not in the end result
in ali the benefits that some hope for"
Referring to the withdrawal by the
Baltimore g. Ohio of its application for
uniflcation of a fourth trunk line in
Eastern territory, the Pittsburgh Post
Gazette voices interest "in the B. & o.
plan for new New York Chicago short
line cutting across Pennsylvania" and
adds: Meanwhile there is the Loree
plan for a New York. Pittsburgh and
Chicago railroad that would call for the
building of 283-mile line between this
city and Easton. 1t would tunnel the
mountains, one Of the proposed tubes
being miles in length. Its cost has
been put at approximately $17T,740,373.
The B. g. O.. of course, and other East
ern carriers oppose the Loree project,
declaring 1t unnecessary and too costly.
It's proponents, however, turn the argu-
ment upon the B. e. o., declaring that
II no new short line is necessary, then
ltS own proposal must fall"
The Newark Evening News states that
the B. & o., in conjunction with the
Van Sweringen roads, is preparing to
night, and the battle may be joined
Within two months. The effort would
De" continues that paper, Ito convince
the commission that the fifth Eastern
system, which it seeks to create out Of
the Wabash. the Western Maryland, the
Seapoard and sundry. other lines, u
neither necessary nor desirable"
1T must be recalled" advises the
Providence Journal. that the Great
Northern and Northern Pacific roads
are not prepared to surrender their in
terest in the Burlington system. Nor is
the Loree group ready to concede that
the proposed fifth trunk system should
De strapped in order that the commits
sion's plan may prevail. Indeed, so far
as the withdrawal of the Baltimore &
OHIO plan is concerned. and, further
more, 50 far as the commissions ruling
IN the case of the Great Northern and
Northern Pacific Is concerned, the con-
Sondation movement has registered very
nttle progress. And aside from the offer
OF the Wabash to amend, not withdraw,
us plan, that appears TO be the total
advance thus far of the railroad con-
soldation movement this year."