Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-02
RAIL CHIEFS 0. X.
! 4-SYSTEM MERGER
Details Withheld Until Plan of
Eastern Executives
/ Reaches |. C. C.
o. the Associated Press,

Gy the Associated Press.
NEW YORK, October 2.-EXecutives
Of leading Eastern railroads yesterday
announced their agreement on details
of a plan for merging lines In this
territory into four major systems.
The proposal will be submitted to
the Interstate Commerce Commission,
whose approval is necessary before 1t
san become effective.
Ending eight years Of negotiation, the
presidents of Pennsylvania, New York
Central, Baltimore g. Ohio and CheSa-
peake & Ohio-Nickel Plate group
smoothed out troublesome points which
had been standing in the way Of a
final decision on the plan announced
at the White House last December.
It wss said the settlements reached
would rot become public until the doc
umsnt was in the commissions hands.
Trackage Rights Problem.
One Of the problems had been wheth-
er Pennsylvania should have trackage
rights over the Nickel Plate along the
South Shore of Lake Eric, New York
Central being the objector to such an
arrangement.
Neither was it announced whether
the difficulties were solved without the
aid of the arbtrators appointed last
Winter. but 1T was believed that the
executives had to come to their set
Element without such aid
The general consolidation plan, as
outlined in the Winter. provided for
the following groupings:
To the New York Central-LAcka :
wanna and direct connection with the
Vtrginian at tidewater.
To the Pennsylvania the
Detroit, Toledo &; Ironton and Norfolk
& Western.
To the Baltimore e. Ohio-Ann Ar
Dor, AReading. Central of New Jersey
Western Maryland, the Buffalo. Roch-
ester e. Pittsburgh, Buffalo a. Susque-
hanna. Lehigh 81 Hudson River and
Chicago d Alton.
To the Chesapeake e. Ohio-NickeI
Plate-Erie. BeSsemer e. Lake Erie, Pert
Marquette Wheeling & Lake Erie, Chi
cago IL Eastern Illinois and Lehigh
Valley. giving the Pennsylvania certain
trackase rights over the Lehigh.
No disposition was made of the Vir-
gilman.
Properties Acquired.
The four principal roads have already
acquired control, either directly or indi-
rectly. Of most of the properties neceS-
Sary to complete the proposed redistri-
button. Many financial details must
still be settled. including adjustments to
minor stockholders of the various roads
20 be merged
BY uniting into four strong systems
the Eastern railroads have long cen
tended that substantial operating econ
omies could be effected and that the
rail transportation service could be i'm
proved. They nevertheless found it
difdcult to reach an agreement on how
the smaller lines should be allocated
and it was this point that caused most
OF the delay.
Under the new Arrangement. Penn
eylvania's mileage would be about 49,
300, New York Central's $4,000. c. & o.
Nickel Plates $4,000 and Baltimore 4,
Ohio's 1880.
Yesterdays conference the second
this week. was attended by Patrick
Crowley president: A. H. Harris. chair
man OF the Finance Committee. and
Clyde Brown counsel of the New York
Central Railroad: Daniel Willard, pres
ident, and George Shriver. executive
vice president of the Baltimore Il Ohio:
j. J. Bernet. president Of the Chesa
peake IL Ohio-Nickel Plate System: w
w Atterbury. president snd other on
Gals OF the Pennsylvania.