The Washington times., 1930-11-17
TRAIL PROBLEMS
/ ARE FARFR0N !.
| SETTLEMENT
Tentative Plan Of Interstate
Commerce Commission Is
Called Arduous Task
BY EDWARD DIXON

Gdleu ATuuOuS TASK
BY EDWARD DIXON
On March /, 1920, the Trans
portation Act of 1920 went into
effect.
Among other things, the Act
provided for amendments to the
Interstate Commerce Act, direct
ing the Interstate Commerce Com
mission to prepare q plan Of con-
solidation, under which the car
riers were to be grouped into q
limited number Of systems, which,
theoretically, at least, would be
on an even plane.
On December 81, 1929, the In
terstate Commerce Commission,
after long years of study, an
nounced its tentative plan for the
consolidation of the railroads Of
the United States.
The publication Of the plan was
the signal for considerable com.
ment, both favorable and unfavor-
able, from railroad officials, bank
ers and economists.
Different in East
Most of the dissension has cen
tered around the Commissions
grouping of the Eastern trunk
lines. Existing trunk lines. in the
South and West formed natural
branches, to which feeder lines
might be added in the future. In
the East, however, the railroad in.
dustry had developed to such an
advanced stage that the problem
Of assimilating the various roads
into separate groups was an ar
duouS task, and one which the
commission might be said to have
handled with kid gloves.
The commission naturally Sc
lected the already existing trunk
lines as the basis for the future
systems. The fly in the oint-
ment, however, came when the
commission was faced with the
ALLEGATION of the Reading, Jersey
Central and Lehigh Valley, three
rich and strong anthracite roads.
Thinking to avoid offending
the major roads, that Is, the New
York Central, Pennsylvania, Bal
timore & Ohio and Chesapeake &
Ohio-Nickel Plate, the commits
sion decided to bring a fifth
trunk line into the picture. Much
as the commission has sought to
avoid creating dissension, this
fifth trunk line has been the
principal argument Of the lead
ing carriers.
Wabash and Lehigh Valley
were singled out to serve as the
nucleus Of the new system.
Plan Meets Objections
For more reasons than one,
this system is strenuouSly OBJ
jected to by the existing systems.
Baltimore g. Ohio, because Of the
ALLEGATION of the Reading and
Jersey Central systems to it, is
taking a passive stand. The
recent acquisition of the Chicago
& Alton has altered Baltimore q
Ohio's objection to this system.
The Chesapeake & Ohio, Nickel
Plate group and the New York
Central. are the chief objectors,
basing their stand on the theory
that the new line would add o
new and powerful rival in a terri
tory already over-run with COM
petition.
Pennsylvania position in re-
gard to the new system is an
interesting one, for it controls or
nearly controls both the Lehigh
Valley and Wabash. Pennsyl-
vania probably would be willing
to part with its holdings of these
roads providing it could secure
trackage rights over the Nickel
Plate to provide outlets over lake
shore property now served by Le-
high Valley.
Another angle which neceSSar-
lily must be considered in any
further discussions is the value Of
stocks purchased by Pennsylvania.
For example, it has been eSti-
mated that Pennsylvania ex-
pended in excess of $106, ,O00, 900
in acquiring the shares Of Lehigh
and Wabash.
While Pennsylvania undoubted-
ly would be willing to sell these
holdings, the difficulty would
arise in finding a purchaser. The
Taplin interests have indicated
that they are willing to buy. the
Lehigh, from Pennsylvania in
order to conSummate the fifth
trunk line scheme. The Taplins
are not philanthropiSts to the
extent that they would be willing
to pay an excessive amount for
the shares. In their previous
dealings with the Pennsylvania
interest, via the Pennroad Corp,
the brothers benefited to the ex-.
tent of $4,000, 900.
There has been some talk re-
Gently of plans for the formation
of a new company to take over
Pennsylvania'S holdings of Le-
high Valley. At current prices,
however, there is difference Of
SIS a share from the price Penn
sylvania paid for the stock. Ac-
cording to reports, it is planned
to equally distribute Pennsyl-
vania's holdings Of Lehigh among
the four trunk lines now in ex.
iStence.
While this is a step towards
solving the problem, Pennsyl-
vania almost certainly would not
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