Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-12-30
RAIL CHIEFS AGREE
ON MERGER PLAN
Hoover Announces Decision
to Form Four Major
Systems in East.
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carrying out the wishes of Congress,
but they have proved abortive.
"A year ago the Interstate Commerce
| Commission issued a suggested plan for
| consolidating these roads into five sys-
TENS. This plan, like others, has met
with objections which apparently made
1t an unSolvable basis. These uncertain
ties and delays aver 10 years have seri-
ously retarded development of the rail-
ways and have prevented desirable
growth in many directions, and have
diminished their ability to compete with
other forms of transportation. Such
questions as identification, linking up
of different railroads, development of
| terminals and many other major i'm
provements have been retarded because
OF uncertainty with respect to the posi-
ton which particular roads are to oc-
| cupy IN the permanent grouping.
Minor Point Remains.
at is my understanding that the plan
| provides for the protection of the in
terests Of the employees and full con-
sideration Of the interests of various
communities and carries out the re-
| quirementS OF law in protection of pub
| lie interests generally. The presidents
Of the major systems have agreed upon
the many details Of the plan, with the
exception of minor point, which Is
left to arbitration.
The plan, Of course, must be sub
| united to the Interstate Commerce
Commission, which has the independent
duty to determine whether 1t meets with
every requirement Of public interests"
Meanwhile, members of the Interstate
Commerce Commission declined to COM
ment on published reports of the new
plan.
The American Railway Association
officials also refrained from any imme-
date announcement Of details of the
proposed plan. r. H. Ashton, president
Of the association, conferred lote yester-
| day with President Hoover
Shortly before Mr.. Hoover made the
announcement he conferred with Chair
man CouZenS of the Senate Interstate
| Commerce Committee, who has a bill
pending to suspend for one year all
railway consultations.
Plan Not Yet in Writing.
In railroad circles it was stated that
| although there had been agreement as
| to virtually all points, the consolidation
plan had not yet been reduced to writ
ing. This Is to be done at future con-
ferences.
The report that the Nickel Plate and
Baltimore g. Ohio had at last sue
| ceeded in getting their long-sought en-
try into New York City was said to be
substantially correct.
| Under the plan, as understood by
railroad men, the Pennsylvania Railroad
would turn over the Lehtgh Valley Rail-
road to the Nickel Plate; the Nickel
Plate would waive claims to the Della
ware, Lackawanna and Western to the
New York Central, and the New York
Central would cede its interest in the
Reading company, which controls the
Central of New Jersey, to the Balti-
| more & Ohio. Thus the Nickel Plate
| and Baltimore g. Ohio get lines direct
into New York City.
In return for its contribution to the
plan, the Pennsylvania would secure
trackage rights over the Nickel Plate
| along the south shore of Lake Erie.
This was the big stumbling block to
the plan, it was understood, the New
York Central objecting to the Pennsyl-
vania getting the rights which give it
easy access TO Buffalo.
Couzens Wants to Study Plan.
At the Capitol later, after the Presi-
dents statement, Couzens said he want
ed to study the plan in detail before
expressing any attitude on it.
/ 4NO IO1lSOAIQdIAOll oCAACAAIC OF 4dI kldo
been in the public interest," he added,
land If this is in the public interest it
will be a novelty"
The Senator also challenged the con-
tention of President Hoover that the
consolidation eventually would open the
way for lower rates. He said such an
argument was contrary to the testi-
mony of the railroad presidents before
the Senate Interstate Commerce Com
mittee. He quoted Daniel Willard,
! president of the Baltimore & Ohio, as
saying that no hope should be held for
! lower rates as q result of the proposed
consultations.
If the study of the proposed realign-
ment leads him to conclude 1t would
| be a poor one, Couzens said he would
renew his efforts to obtain action by
the House on his resolution to prohibit
consultations prior to March 4, 1881.
| The Senate approved that resolution.
It was reported at the Capitol
Couzens protested to the President
! against issuing a public statement on
consolidation at this time, but he de-
clined to comment on that.