Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-12-30
EARLY AGREEMENT is SEEN.
I. C. C. and Congress Aid Counted on
to Expedite Action.
BY DAVID LAWRENCE,


Prospect Of an early agreement on
four trunk lines in the East is expected
to advance the subject of railroad con-
solidation during the next few months.
While the Interstate Commerce Com
mission plan announced just year ago
provided for five systems, the possibility
that the railroads themselves might
agree on four is now being held as a
basis for an amendment of the original
plan. Just how all minority interests
in the larger railroads as well as the
owners of some of the smaller railroads
are all going to be reconciled is not
yet clear, though it is apparent that
the advocates of early action are count
ing upon the moral support of the Inter-
state Commerce Commission as well as
approval of Congress to expedite the
whole business.
Consolidation Idea Grows.
The fundamental principle on which
the Interstate Commerce Commission
has been working has been that compe-
tltion shall be maintained between the
various systems.
It has been argued that railroad con-
Solidation will mean operating econ
omieS and that it will have a profound
effect on the cost of distribution as
well as on the efficiency of trans
portation. The subject has been more
or less academic for several years, with
railroad executives in the last two years
arguing that while greater efficiency
would result 1t could hardly mean any
Nationwide reduction in transportation
costs. The problem has become con-
crete now that the railroads are them
selves faced with serious competition
by bus and truck companies as well
as inland waterways and coastwise
transportation.
There IS a bigger urge behind the
consolidation idea today than at any
time since the subject began to be dis
cussed years ago. Many of the rail-
roads are naturally hesitant to expand
or to replace old equipment because
they do not know what their new needs
will be when the consolidation plans
are completed.
been to get the railroad executives
themselves to agree on practical
method of operation in Eastern ter
ritory-that is, between Chicago and
New York. The Importance of an
early decision has been recognized in
recent weeks. There have been almost
constant conferences during the last
month and, now that it is officially
announced that the railroad executives
dAC III SuDoIdIlIldl dBTGEHleIlI, IL Is
expected that President Hoover linn
self will transmit to Congress recon-
mendations that during the short ses-
sion an effort be made to pass the
necessary legislation which Will au-
thorize a further development of the
plan by the Interstate Commerce
Commission.
Mr.. Hoover's interest is that the rail-
roads shall not only be able to MAIN
tain their present employment and level
Of wages, but that they may be able to
absorb q large quantity Of labor now
idle, especially when new construction
or requirements are begun. The steel
industry is dependent to no small ex-
tent on the prosperity of the railroads.
The railroad problem has become a
part of the general plan of employment
relief and it is on this ground that Con-
gress will be asked to give early con-
sideration to the recommendations that
may come to it some time during jan
uary.
Copyright 1890, By Consolidated Press
Association.)