Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-01-30
RAILROADS FAVOR
|. merger PRINCIPLE
Majority of Companies Ap.1
prove Idea, but Differ
Oh Details.

Railroad earnings give appearance OF
being on the increase, but the actual
figures which would support this con-
clusion are still some weeks OF. Car
loadings are known to be comparing
favorably with those Of q year ago.
aItnougn perhaps not at 50 high a
rate. Reports from shippers are grad
ually bringing relief from uncertainty
as to volume of freight. Similar relief
Is making itself apparent with regard
70 the attitude OF the Interstate Com
merce Commission.
The one thing which has worried
carriers for years is not Knowing ilIst
what the Interstate Commerce Com
mission would approve in the way of
consultations. The majority of the
roads favor consolidation, but not ali
favor the same consolidation schedule.
It has become Thoroughly Apparent.
however, In recent hearings that the
commission takes its plan with the
utmost earnestneSS and Is inclined to
favor petitions conforming with the
plan.
Eastern Territory.
This was clear In the recent hear
ings on the Baltimore & Ohio petition
TO acquire the Buffalo, Rochester a.
Pittsburgh and the Buffalo a. Susuue-
mamma. These roads have been allo-
the plan. This has brought objection
from the Delaware g. Hudson, which
is opposing this acquisition.
30 Iar moves toward following the
merger plan have been confined Ia a
large extent to Eastern trunk line ter
ritory,. where there is evidence of con-
siderable activity. The Wabash system.
as proposed, Is known to be preparing
Ior action. The Baltimore g. Ohio has
SlnnnfffA6 itg AfNva
z short line to Chicago. The Van
Sweringen roads have now been permit
ted TO make the Chesapeake a. Hook
ing an integral part Of the Chesapeake
q Ohio. The New York Central and
the Pennsylvania are not making omen
moves, since they are least Concerned
as TO acquisition Of new lines, being
wen rounded out already. L. F. Loree
president OF the D. g. H.. declares he
will not give up hope of securing a
place IN the sun for his proposed New
York, Pittsburgh 81 Chicago Railway
winch would provide q new trunk line
to Chicago.
In view of this fact, railroad men
gathered here for the various hearings
mold to the belief that the consolida-
tions viii be worked out piecemeal.
ratner than BY whole systems at a time
tnat Is, the leading member of q group,
$500. SAA~ PAOAAs may AAAC application TO
acquire control Of a single one of the
other lines allocated to It. Hearing will
De neld on this application. It is gen.
orally felt that the decisions will tend
toward the applicant If the procedure is
in accord with the commissions plan,
unless some significant factor caused
contrary action.
State Authorities.
The carrier would then propose IN
apply for acquisition of another line
and continue until the whole system is
rounded out.
In addition to the opposition of rival
carriers and minority stockholders.
State authorities have shown q strik-
ing disposition to intervene in the pro-
grams. The Illinois commerce commits
sion asked leave to intervene In the
general railroad consolidation proceed
ing under docket 1864 OF the commits.
sion. 1t was explained at the conmis-
sion that the announcement OF the
plans OF consolidation formally ended
proceedings under docket 1884.
The final plan Is considered by the
commission Just as Q final decision In
finance valuation or rate cases are con-
sidered, and the case is closed until
some of the interested parties file q pc
tition to open 1t. The Illinois commits
sion, therefore, was found to have
Med petition In closed case, but it
was explained any State commission or
governor could intervene without peti-
ton in q case involving q carrier the
lines Of which pass through the State.
(C0DyriRht. 1901