New Britain herald., 1930-04-02
Interstate Commerce Com- mission Member to Lay Groundwork for Months of Inquiry = Witness Consistently Against Monopolies.

Washington, April R)-In call ing Commissioner Eastman of the interstate commerce commission, as the first witness in it's investigation Of railroad holding companies, the house interstate commerce commits son has assured itself that prac- tices of the companies condemned by the commission will be investi- gated at the outset.
 Eastman is expected in his testi- mony Saturday to lay the founda- tion for months of inquiry into the actual ownership of the nation s carriers and legislation necessary to control them.
 Always Opposed Monopoly
 Listed as an independent both politically and on the bench, the commissioner has consistently op- posed anything with a hint of monopoly. Writing a separate opin- ion last December on the commis- DUH pldli, lie SdlI there is reason to believe that the country is becoming considerably alarmed by the progress of consoli- dation and unifications among in dustries in general, and it is feared that control of industry is rapidly danger that we shall become a na- ton of clerks and subordinates."
 More recently, he opposed hold ing companies of the Delaware anl Hudson railroad.
 Instigated at the behest of the commission, the house committee headed by Chairman Parker will scrutinize newest phases of a pro- cess that bas been a part of the transportation system since the first steam line was chartered.
 Consolidation has gone steadily forward in one form or another. The Pennsylvania railroad has grown from a single line between Harrisburg and Pittsburgh to one of the strongest systems in the country by absorbing hundreds of smaller lines.
 Would Reduce Roads
 In it's plan for consolidation, the commission purposed eventually 70 reduce the nearly 1,5O0 roads now operating into 21 unified trunk line systems, but in announcing this program, it voiced belief that the new era of holding companies was threatening to block the entire consolidation scheme and was per laps beyond power of the commis- sion or department of justice regu- lation.
 Between 800 and 500 holding and investment companies are to come within the scope of the inquiry starting Saturday. The exact num- Der to be closely scrutinized is to be determined. however, by a ques- tionnaire now being drafted by Dr. w. M. w. Splawn, special counsel, which will be sent to each com- pany. As a result, several weeks are expected to elapse between Commissioner Eastman's testimony and further hearings.
 Names Pennroad Concern
 In it's annual report to congress recommending legislation to deal with the companies, the commission named the Pennroad Company. which is controlled by stockholders of the Pennsylvania railroad, and by the Van Sweringen interests Ct Cleveland, among those companies owning no physical property bu, holding stocks in several roads and meriting most serious attention
 The old Delaware &, Hudson Company, backed by millions of dollars in cash resources and dom- mated by l.. r. Loree, the Chesa- peake Company, another Van Swer- ingen organization, the Consolidated Shares Corporation of New York, The Virginian Company and others are among the groups to be n.ve5- tlgated as the committee seeks in- formation upon which to base legis lation.