Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-06-15
RAILROADS OF EAST
PLAN MERGER PLEA
Proposal for Four Systems
Looms as Additional Prob
lem for !. C. C.

After hanging IRE for six months, the
four-system consolidation Of the Eastern
railroads is expected to be presented to
the Interstate Commerce Commission
for approval within the next two weeks.
The commission then will be con-
fronted with three rail problems of i'm
portance, for this week is expected to
see the submission of the freight rate
increase petition, and the Commission
already is wrestling with the subject of
motor-rail coordination.
This motor-rail matter differs, how
ever, from the other two in that the
commission can only make recommen-
datioas for legislation. On consolida-
ton and rates, the commission itself
can act.
Only a few details remain to be
settled before the four-system plan is
ready, and these are TO be ironed out
at q meeting of officials for the groups
involved: New York Central, Pennsyl-
vania, Baltimore & Ohio, and Chesa-
peake & Ohio, nickel plates, which is
the Van Sweringen system.
Proposed I'm 1920 Act.
Consolidation has been considered for
q decade, having been advanced In the
transportation act of 1920. About Ia
months ago, the Interstate Commerce
Commission proposed q set-up covering
the entire country, but only the Eastern
lines, which would have been grouped
into i've divisions under that plan, have
made any move toward unification.
When the plan finally is submitted
to the commission, exhaustive hearings
are anticipated Under customary pro-
cedure, 1t is said, the Governors of the
States affected will be notified and they
IN turn will be expected to inform the
interested agencies Of their several
States.
The railroad unions also will come
into the hearing, for when the plan
first was announced six months ago,
1t was made very plain that the brother
hoods wanted the rights of the workers
Safeguarded, an issue that is intense
ned by the personnel retrenchments al
ready In progress due to economic con-
ditions.
Another factor in the matter is that
the grouping decided upon by the rail-
roads runs counter in several instances
to ideas Of the commission, as well as
orders Of that body. This latter situa-
ton has arisen from the commissions
orders for certain roads to divest them
selves Of holdings in others, on the
ground that they were parallel, COM
peting lines.
Decision Is Awaited.
The method of settlement in one
moot question that has been delaying
the consolidation has not yet been made
public. This Is the demand Of the
Pennsylvania for trackage rights over
the Nickle Plate along the south shore
OF Lake Erie from Brocton, N. Y, to
AShtabula, Ohio, which would serve as
a "tie-in" for several short lines and
throw the Pennsylvania into competi-
ton with the New York Central.
George T. Slade, named to arbitrate
this problem. is to report at the next
Of the executives.
The Van Sweringens are due to get
the Lehigh, now controlled by the Penn
sylvania, as part of the trade.
The Pennsylvania is understood to
have reserved the right to solicit freight
at any point on the Lehigh.
The exact form the consolidation pc
tition will take has not been announced.
There may be two: The first would
ask amendment of the commissions
This petition would contain the out
line Of the four proposed systems. The
other would ask formal approval of the
proposed Set-up and outline how the
roads plan to control and operate the
lines.
Many lines involved already are
owned or controlled by the systems to
which they are allotted by the CONSOLE
dalton. The Baltimore & Ohio owns
the Chicago & Alton. the Buffalo 81
Susquehanna and the Buffalo, Rochester
q Pittsburgh. 1t has petition before
the commission for approval Of &C
QUESTION of the Chicago & Alton and
already has been authorized to control
the two other lines. A request for
authority to sink the identity Of the
Buffalo & Susquehanna and the Buff
falo, Rochester & Pittsburgh into the
Baltimore & Ohio for operating pur-
poses was sent the commission last
week.
Owns Other Roads.
The Baltimore & Ohio also owns a
controlling interest in the Western
Maryland and more than 40 per cent
of the stock of the Reading Railroad
and the Central of New Jersey.
The Pennsylvania controls through
the Pennsylvania Co. the Wabash, the
Norfolk & Western and the Detroit,
Toledo & Ironton railroads, which adj
vance information of the lineup indi-
Gated will 60 to that system.
The Van Sweringens control all Of the
principal lines assigned to the Chesa-
peake g. Ohio-Nickel Plate except the
Lehigh Valley, and the Bessemer &
Lake Erie, which Is owned by the
United States Steel Corporation.
They also control the Pittsburgh &
West Virginia, which under the plan
IS to be controlled jointly by the four
systems along with the Lehigh & New
England, Delaware & Hudson, the
and the Pittsburgh, Char
tiers & Youghiogheny.
The plan dismemberS the commits
SONS proposed fifth Eastern system.
known as the MISUNDERSTANDING, and
will affect two lines outside the plan.
It takes the Chicago & Eastern Illinois
from the Chicago & Northwestern sys-
tenn and transfers it to the Nickel Plate.
The Lehigh & Hudson River would be
from the New Haven to the
Baltimore g. Ohio.
The roads from the Wabash Seaboard
are to be disposed of as follows:
The Lehigh Valley and Wheeling q
Lake Erie to the Van Sweringens.
The Western Maryland ana Ann |
Arbor to the Baltimore & Ohio.
The wabash, Detroit, Toledo g. IRON |
on and the Norfolk & western to the
Counter TO Decisions.
The fate of the Seaboard Air Line,
now in receivership: the Akron, Canton
Q. Ynl,n0stnWn. Toledo Peoria a. West |