Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-25
RAIL MERGER PLAN
IS BELIEVED NEAR
Carriers Expected to Submit
FOur-Trunk-Line Pro.
poSaI Soon.
BY CLAUDE A. jaeger,
Associated Press Financial Editor.

NEW YORK, March 25.-The word
has gone around in rail- circles that the
tour-trink-line Eastern consolidation
plan is about to be gingerly deposited
upon tbs lap of the Interstate Conn
merce Commission.
At the moment 1t Is felt In rau cir
cles that the commission has little
choice but to adopt this prodigy In place
OF its own child, which has been slowly
wasting away since the commission an
nounced its five-trunk plan more than
year ago. .
There have been varied runors as %
the health and development of a four
trunk plan and very little definite m
formation since its birth was Announced
from the White House about three
months ago. There has been talk Of
differences Of opinion among its
! guardians. But at last, according to
Wall StreetS present information, il is
all but ready to make its oficial public
appearance.
A Slow Process.
If consolidation will help the rail-
roads to reouce their operating ex-
penses, the low state Of rail earnings
offers abundant reason for has.e But
at best consolidation is a slow process.
Some months will undoubtedly be con-
sumed in hearings by the Interstate
Commerce Commission. The financial
matters Of merger may be complicated
by objections and ambitions Of minority
groups.
While matters Of detail are being
thrashed out, however, at least some OF
the roads appear to be making quiet
progress. The Baltimore g. Ohio. which.
with the Van Swerigen group, probably
tNA a.
ton, has L en- quietly adding to its
holdings of Reading stock, of which It
now has about IS per cent. Wall Street
understands that the New York Gem
trail Is ready to sell the Baltimore Ss
Ohio its IS per cent interest in Reading
at any time. The Baltimore q Ohio.
therefore, seems well on the way to ac-
complishing its major objective, pene-
tration to New York City.
What progress has been made, II any
in settling the controversy between the
New York Central and the Pennsylvania
over the Pennsylvania's demand for
trackage rights along the south shore
OF Lake Erie, Is not definitely known,
but the plan provides for arbitration, II
no agreement can be reached.
The chief prize sought by the New
York Central Is the Lackawanna. and
since the Baker and Vanderbilt families
are important interests in each. no Inn
portant obstacle Is looked for. AS Q
matter of fact, the New York Central
Is understood to have been increasing
its holdings Of Lackawanna stock.
The Van Sveringens apparently feel
that the groundwork has been pretty
well prepared for the integration of
their Chesapeake 81 Ohio-Erte-N Nickel
Plate-Pere Marquette system, and have
been turning their attention to New
England, which does not figure In the
four-party plan, but offers important
freight connections for all concerned.
New England Situation.
Before the four-party plan has more
than taken form, struggle ever the
New England situation appears to be de-
veloping IN f1ne style. The Van Swerin-
gems have been developing local senti-
ment IN favor OF their acquisition of the
Boston q Maine, in which the New Ha-
ven is q dominant interest. In the
meantime, Pennsylvania has proceeded
stock.
What the interest Of the Baltimore
q OHIO may be IS not wholly clear, but
one theory widely held is that the Ball
tlmore q Ohio favorS an independent
consolidated New England system. It
has no hold On any Of the New England
carriers, and this would at least tend to
prevent its competitors from getting all
the business. The New York Central
however, is determined to hold the Bos@
ton q Albany, on which it has a 999-
year lease.