The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1931-01-10
n, AND n, P,LINES
FINALLY DROPPLAN
0 RECONSIDERATION
Merger of Two Great Northern
Railroads Seemed Near
Completion Often
TO WITHDRAW APPLICATION
Stipulation That Roads Divest
Themselves Of BurIington's
Control Is Cause

New York, Jan. 1O.-HeTne pros
pective merger Of the Northern Pa
c:fic and the Great Northern rail-
ways, which has seemed on the verge
of completion several times during q
stormy career of nearly 80 years, once
more has been called Oft.
The heads to the two roads, and
the stockholders unification commit
tee, jointly announced Friday the
merger application filed with the
interstate commerce commission July
5, 1927, would be withdrawn, owing
to inability to meet the terms under
which the commission approved the
application in February, 1890.
The stumbling block was the COM
missions stipulation the two roads
divest themselves Of their joint con-
troll of the Chicago, Burlington and
Quincy, over which the Northerns
Lave access into Chicago. The COM
missions own consolidation plan
published q year ago sets up an in
dependent system on the basis Of the
Burlington.
Joint Statement Issued
A joint statement by Charles Don
nelly and Ralph Budd, presidents re-
spectively Of the Northern Pacific and
the Great Northern, said In part:
'The plan proposed by us met full
ly the condition of preserving ample
competition; the plan as modified by
the commission also met It: and were
a. aok ranvoot{roh1o az th}c f3noo r.
carry through the plan OF assuring
an Independent Burlington system
we should have submitted tnsthe com.
mission reasons MORE oonvincing thar
ever why the notification OF the
Northern lines should be authorized
1--WE have been reluctant to with
draw our application because it can
not be too strongly emphasized the
problem is one Of deep concern moi
merely to the transportation industry
but to all business and agricultural
interests as well as Of the northwest
This apparent hitch in rail con-
solidation plans was followed ~ Oily
a few days the announcement from
the White House that the Eastern
Trunkline carriers had at last agreed
upon a consolidation plan. Also, II
represents q second setback to the
interstate commerce commissions
tentative plans of setting up new in
dependent systems. for the eastern
carriers agreement. II approved by
the commission, will defeat the COM
missions plan to set up a system on
the basis Of the Wabash, now con-
trolled by the Pennsylvania.
While official comment was lack.
ing, some observers In Wall Street
pointed out that since the eastern
carriers evidently hope the commits
sion will abandon its suggested Wa
bash system, the Northerns may have
similar hopes regarding the proposed
Burlington system.
Would Be Largest System
A u~nification Of the two Northerns
would result in q system of nearly 49,
600 miles OF line, and assets Of q to.
tai book value, according to latest
available statements, Of approximate.
ly : ,700, 100000. The Burlington has
additional mileage Of more than 1900
miles, and q book value Of more than
500, O0o,0
A combination of the first two
would make one Of the largest sys.
TENS in the country. and a combina-
ton Of the three would make the
country's largest system, excelling the
tContlnueu on page elevenI