Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-12-30
Hoover Announces Plan In
voIving PennSy, New York
Central, B. & o. and Nickel
Plate Lines.
PROJECT MUST RECEIVE
APPROVAL OF |. C. C.
President Believes It Will Help
Stability of Roads Themselves,
Provide Work for Jobless During
Depression and Result Eventual
" in Lower Rates for Public.
BY the Associated Press.

BY the Associated Press
Agreement of Eastern railroads
on a consolidation into four indie
pendent systems was announced
today by President Hoover.
The President had asked the
railroad chiefs to map out the
consolidation.
Only one minor point remains
to be worked out in the gigantic
consolidation scheme. That has
been left to arbitration.
The railroads are the Pennsyl-
vania, the New York Central, the
Baltimore g. Ohio and the Nickel
Plate systems.
The WabaSh-Seaboard system,
provided for under the Interstate
Commerce Commissions plan,
issued last December, would be
abandoned.
President Hoover understands the
plan provides for the protection OF en-
ployes and of local communities and
fulfills the intent OF Congress as ex-
pressed in the transportation act of
1920.
Must Go to i. c. C..
The consolidation program must be
submitted to the Interstate Commerce
Commission for approval.
The President said he believed the
plan will contribute to opportunities for
employment in the present depression
and also increase the stability OF the
railroads themselves.
He also expressed the belief that
eventually the consolidation would re-
suit in lower rates to the public.
The Interstate Commerce Commission
b year ago laid out plan looking to
the DEVELOPMENT OF i've great trunk
lines, but objections to the fifth trunk
line caused disagreement among rail-
road leaders.
The new plan provides for the Vir-
Rinian Railway on the South and the
New York Central on the North as
the boundary roads in the movement.
The Interstate Commerce commission,
the President said, has no power 10
force consultations, but under the
transportation act of 1920 has the power
to approve such move.
Text of Presidents Statement.
The text Of the Presidents statement
follows:
LAS a result of meetings of Gen: At
terbury, Mr.. Crowley, Mr.. Willard,
Messrs Van Sweringen and other rep
resentatives of the Pennsylvania, New
York Central, Nickel Plate and Balti-
more and Ohio Railroads, plan for
consolidation of the different railways
in official classification territory teXcept
New England) into four independent
systems was agreed upon for presenta-
ton to the Interstate Commerce COM
mission.
s"The four systems embrace the ter
ritory east of the Mississippi, including
the Virginian Railroad on the south
and the New York Central on the north
"These negotiations have been In
progress for some weeks and were ur-
dertaken at my suggestion IN the nope
of effecting the consolidation policies
declared by Congress in 1920, and espe-
cially at this time as contribution ID
the recovery. of business by enlargins
opportunity for employment ana by ~
creasing the financial stability Of all the
railways, and particularly some OF the
weaker roads.
"The transportation act, passed by
Congress in 1920, provides for a con-
solicitation of railways into limited
number of strong systems in order to
maintain broader competition, more
ADEQUATE service, Simplification OF rate
structure. lower operating costs, and in
the long run lower rates to the public
Discussed for 10 Years.
During the past 10 years, possible
grouping of the roads so as to carry
out the law has been under constant
discussion. The Interstate Commerce
Commission has no power to compe
such consultations. They can only
be effected upon iniation Of the car
Tiers. During this period, a number o.
negotiations have been undertaken II
respect TO these railways, with view U
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