Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-01
Will Recommend Modification
of |. C. C. Proposal for
Grouping of Roads.
COMMISSION URGED
FIVE-SYSTEM PROJECT
Wall Street Regards Decision as
Major Step in Closing
Consolidation.
BY the Associated Press.

bN me Associated Press.
NEW YORK, October 1.-Execu-
tives Of the Eastern trunk line railroads
today agreed on their plan for grouping
the roads into four systems and will
submit their proposal to the Interstate
Commerce Commission, possibly In a
few days
Details which had been holding up
the agreement were finally smoothed
out in conferences held Tuesday and
this morning by presidents of the Penn
sylvania, New York Central, Baltimore
g. Ohio and Chesapeake IL Ohio-Nickel
Plate, which would be the key systems
under the proposed regrouping.
Although An agreement in principle
was announced from the White House
last December, several troublesome
questions. such as trackage rights for
the Pennsylvania over the Nickel Plate,
were not disposed of at that time, but
President J. j. Bernet of the Chesa-
peake & Ohio. in a statement after
today's meeting, said all matters per-
tanning TO the consolidation had been
smoothed out.
Viewed as MAJ Or Step.
This was interpreted as indicating
that the roads were at last in agree
ment as to all important matters in the
plan, and was regarded in Wall Street
as major step in bringing to fruition
the long-projected plan Of consolidating
the Eastern railroads.
While 1t was first announced that
such plan had been accepted by the
roads in principle as long ago rs last
December, the carriers had been unable
to whip the plan in final shape for
presentation to the commission.
The formal announcement OF the de-
ciSion. made today after a conference
in the Offices of w. w. Atterbury. presi-
cent Of the Pennsylvania Railroad.
said:
Agreement Is Reached.
The presidents of the PENNSYLVANIA.
New York Central. Baltimore a. Ohio
and Chesapeake e. Ohio-Nickel Plate
System. after many conferences of the
four systems, have reached an agree
ment TO be signed and forwarded to the
Interstate Commerce Commission recon-
mending a modification Of the commits
sion's plan for grouping the railroads
in the Eastern district into four
systems
The Interstate Commerce Commits
sion proposed an Eastern consolidation
the entire country nearly two years
ago. in which it suggested that the
Eastern trunk line roads be grouped
in five systems, instead of the four now
projected.
Five-System Plan Tentative.
The flve-System would have been
based on the Wabash, which the four
party plan would allocate to tn. Penn
Sylvania. The flve-system plaT. Of the
I. C. c., however, has been egarded
in railroad circles as largely tentative.
Those in attendance at today's con-
ference were Patrick Crowley. president;
A. H. Harris. chairman of the Finance
Committee, and Clyde Brown. counsel
OF the New York Central Railroad;
Daniel willard president and George
Shriver. executive vice president of the
the Baltimore 81 Ohio: J. l. Bernet,
president of the Chesapeake 81 Ohio
Nickel Plate System: w. w. Atterbury.
president, and other officials of the
Pennsylvania
General Plan.
The general plan. as announced some
months ago, called for the following
disposition of the roads:
To the New York Central-The Lack
awanna and direct connection with
the Virginia Railway at Deepwater. in
Guiding joint rates and routes over that
railway.
To the Pennsylvania-The Wabash,
the Detroit, Toledo & Ironton and the
Norfolk g. Western.
To the Baltimore g. Ohio-The Ann
Arbor, the Reading 81 Central Railroad
of New Jersey, the Western MARYLAND,
Buffalo, Rochester & Pittsburgh. Buff
falo & Susquehanna, the Lehigh d.
Hudson River and Chicago 81 Alton.
To the Chesapeake & Ohio-Nickel
Plate-The Erie, the Bessemer g. Lake
Erie, Pere Marquette, the Wheeling &
Lake Erie. Chicago & Eastern Illinois
and Lehigh Valley, but permitting GER
tain trackage rights to the Pennsylva-
mia over the Lehigh.
Virginian Left Out.
Disposition of the Virginian Railway
was not determined in the plan as an
nounced
1t has been understood for some time
the chief stumbling block in the nego-
tiationS has been the New York Gen.
trails objection to the insistence of the
Pennsylvania to certain trackage rights
over the Nickel Plate, along the shore
of Lake Erie, which territory has long
been dominated by the New York Cen
trail.
The four leading companies already
have acquired virtual control, either
directly or indirectly through sympa-
thetic interests. of almost all of the
properties needed to complete the
mergers.