Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-12-31
,AOOVER STATEMENT.
HELD "UNETH|CAL"
CouzenS Makes Charge on
Rail Merger Without Civ
ing Own View.
CONTINUED From First Page.)

merce to make an investigation of what
had been accomplished by. conSolida-
tions, and to make report to the Sen
ate. The Committee on Interstate Com
merce has since then been making a
careful inquiry based on the resolution.
"A tentative report will be ready to sub
init to the committee within a few
weeks. Until that report is made and
studied, there will be no opportunity 70
discuss it. The merits of the proposed
consolidation cannot be passed upon
because the plan has not been sub
mitted to the public or to the Interstate
Commerce Commission, and until that
is done, of course, I will not be in a
position to comment upon this particu
lar proposed consolidation.
Holds Statement UnethicaI.
while hesitate to criticize the ethics
of the President of the United States,
the issuance of this statement by him
in my judgment is most unethical. In
the concluding paragraph of the Pres
ident's statement he says, The plan, OF
course, must be submitted to the Inter
state Commerce Commission, who have
the independent duty to determine If 1t
meets with every requirement of public
interest
I'm view of the Presidents support
Of the plan, it is questionable whether
che independent duty of the commission
can be ascertained. Every one knows
the power and influence of presidential
approval and every one knows that
these commissioners owe their positions
to the President of the United States,
and while it is the duty of the Senate
TO confirm these appointments, no name
can get to the Senate without first hav-
Ang been selected by the President OF
the United States.
"There is rapidly growing a public
opinion that the President determines
the action of these independent COM
missions and such opinion will not be
dissipated by the issuance of the pres
ent statement of the President.
"As stated previously, have not seen
the plan, and so am not in position
to say whether or not in my judgment
it is in the public interest, but do say
that if this proposed consolidation is
not greater in the public interest than
the consultations already accomplished
or approved as in the case of the con-
solidation of the Great Northern and
Northern Pacific, we may not hope for
much, if anything
"It is unfortunate that this great con-
Solidatlon proposal is based upon the
great suffering now because of unem-
ployment.
sees NO AIu 10 BUSINESS.
at is inconceivable to me that this
great consolidation proposal can be con-
summated within the year 1881, and
therefore will not have much If any
effect upon the recovery of business, or
enlarge the opportunity for employment.
Some railroad presidents have already
stated that they have gone much further
than they were justified in making cap
ital investments to take care OF the
present volume of business, or even the
volume of business which we had in
1929 and the early part of 1929. If
such be the case there does not seem
to be much hope for large capital ex-
penditures as stated by the President.
Certainly this plan does not seem to
hold out any hope for increased en-
ployment or increased business. Whether
or not the economies outlined by the
President will materialize is questionable,
but there do appear to be other econo-
mics not brought around by consolida-
ton that might be practiced by the
railroads. For example, during the past
10 years there has been no reduction
in the price of rail by the steel COM
panies to the railroads. l am informed
that they have been paying SAB per ton
for steel rail during all of this period,
while other steel products have been
reduced on an average of 20 per cent
] am informed that approximately $780,
100000 have been spent by the rail-
roads for steel rail, and had that been
reduced the same percentage as other
steel products the saving of the rail-
roads would have been S18,000,000. The
fact that all companies seem to have
been charging the railroads SAB per ton
would make it appear that there must
have been some collision between the
railroads and the steel companies.
There is also practice engaged in
by the railroads of letting much Of
their work be done without securing
competitive proposals, and this certainly
cannot have been done in the public
interest.
II fully recognize some of the diff
clltles that the railroads are now en-
countering by competition by other
means of transportation, but this Is
an experience no different than that
which other industries have to contend.
Il have evidenced my interest in at
tempting to solve some of these prob
lens by my effort to get Congress to
adopt legislation to regulate bus oper-
alton, but because of the diversity of
opinion existing in the Senate, nothing
has yet been accomplished,
THE putting together Of some so
railroads in the official classification
territory will involve a great many
problems by the Interstate Commerce
Commission will be watched with great
interest to see whether or not the
Presidents claims that this consolida-
ton is in the public interest are war
ranted."
Upon leaving the commission, where
he was closeted with Commissioner
Myer for the better part of an hour,
Mr.. Willard said that the rail executives
involved in the proposed consolidation
would meet again in New York Friday
to take up the draft of the plan which
will eventually be presented to the
commission.
He added that it was not certain how
long this would take, but in response TO
a query said he would certainly think
that it would be within a month.
Mr. Willard would not attempt any
discussion Of details. saying that 1t Just
simply meant under present conditions
that a start had been made.
Speaking, as he said. only for the
b. g. o.. he expected the consolidat ton
to be worked out on a stock acquisition
basis.
Willard was very optimistic over the
chances for the successful working out
of a merger plan, and added that he
knew of no other factor that would
contribute more toward stabilized con-
ditions
Another visitor at the Offices of the
commission this morning was r. H
Ashton. president OF the American
Railway Association, but, as on the &C.
caSion OF his visit TO President Hoover