Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-04-01
EASTMAN CALLED
IN RAIL WAY PROBE
Practices of Holding Compa.
MES to Be Gone Into by
House Committee.
By the Associated Press.

BY the Associated Press.
In calling Commissioner Eastman of
the Interstate Commerce Commission
as the first witness in its investigation
of railroad holding companies the
House interstate commerce committee
has assured itself that practices Of the
companies condemned by the commits
sion will be investigated at the outset.
Eastman is expected in his testimony
Saturday to lay the foundation for
months of inquiry into the actual own
ership of the Nations carriers and
legislation necessary to control them.
Listed as an independent, both
politically and on the bench, the COM
missioner has consistently opposed any,
thing with a hint of monopoly. Writ
ing a separate opinion last December
on the commissions consolidation plan,
he said, There is reason to believe that
the country is becoming considerably
alarmed by the progress Of consolida-
ton and unifications among industries
in general. and it is feared that con-
troll of industry rapidly is passing into
a few hands, with the danger that We
shall become q Nation of clerks and
subordinates."
Proposes 81 Unified Lines.
companies of the Delaware g. Hudson
Railroad.
Instigated at the behest of the COM
mission, the House committee, headed
by Chairman Parker, will scrutinize
newest phases of a process that has
been q part of the transportation sys-
tenn since the first steam line was
chartered.
Consolidation has gone steadily for
ward in one form or another. The
Pennsylvania Railroad has grown from
Q single line between Harrisburg and
Pittsburgh to one Of the strongest sys-
TENS in the country by absorbing
hundreds of smaller lines.
In its plan for consolidation, the
commission purposed eventually to re-
duce the nearly $500 roads now OPP
Grating into 81 unified trunk line sys-
TENS, 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 perhaps beyond power of the
commission or Department Of Justice
regulation.
800 to 500 to Be Studied.
Between 800 and 500 holding and
investment companies are to come
within the scope of the inquiry starting
Saturday. The exact number to be
closely scrutinized is to be determined,
however, by a QUESTIONABLE now being
drafted by DR.. w. M. w. Splawn, spe-
cial counsel, which will be sent to each
company. AS a result, several weeks
are expected to elapse between Commits
sioner Eastman's testimony and fur
Their hearings.
In its annual report to Congress rec
ommending legislation to deal with the
companies, the commission named the
Pennroad Co., which is controlled by
stockholders Of the Pennsylvania Rail-
road, and the Allegheny Corporation,
formed by the Van Sweringen interests
Of Cleveland. Among those companies
owning no physical property, but hold
ing stocks In several roads and merit
ing most serious attention.
The old Delaware & Hudson Co.,
backed by millions of dollars in cash
resources and dominated by l.. F.
Loree: the Chesapeake Co., another
Van Sweringen organization; the Con-
solidated Shares Corporation of New
York, the Virginian Co. and others are
among the groups to be investigated as
the committee seeks information upon
which to base legislation.
c. q o. MAY WITHDRAW PLEA.