Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-01-03

two or more and In many instances
by all systems.
This would provide for the COM
petition that Is q necessary prerequisite
TO any consolidation scheme, under the
provisions of the transportation act of
1920, which authorizes the console
dations.
were that the systems, working together,
could build up the rail facilities in the
Eastern territory; that each would have
adequate access to sources of fuel sup
ply and participate in a large extent in
the commercial distribution of coal in
the territory; that each would have ac-
cess to at least two of the five principal
North Atlantic ports, safeguarding both
service to and competitive relationship
Of the ports: that each of the systems
would have access TO lower Lake ports,
participating in the rich ore and coal
trafhc Of those gateways.
Equal Opportunity in Traffic.
This all, summed up, meant equality
of opportunity for obtaining trafic, sup
porting the railroads contention that
the plan was designed to more nearly
balance their income
Other accomplishments of consolida-
ton have been set out as including oper-
train service, and single line instead of
multiple line hauls for freight,
Whether the groupings proposed re-
ceive the final approval of the Inter-
state Commerce Commission will be
determined after hearings, to which, If
previous procedure is followed out, the
Governors of all the States concerned
will be invited, and which, in all prob
ability, will bring representatives of
nj fV1fAraGfC in Ef0k r. nvix
their views.
Substitute for Five-System.
The four-system set up absorbs a pro-
posed flve-syStem plan advanced by the
commission a year ago, but there has
been feeling that the switches ne
ceSsitated by this arrangement, will not,
N the main, prove a stumbling block.
Under that plan, there was a Wabash
Seaboard grouping. Now, the Wabash
is allocated to the Pennsylvania, which
already holds Wabash stock, and the
Seaboard, now in receivership, might, it
has been said be linked in with one of
the Southern systems when that set-up
is reached.
The Pennsylvania has been ordered
by the commission to divest itself of its
Wabash holding, and to effect the new
grouping, this order must be reScinded,
the Van Sweringens' to give up the
Wheeling g. Lake Erie, which they
would keep under the four-system plan,
and another order directing the Balti-
more 81 Ohio to get out of the Western
Maryland, which the four-system plan
proposes 1t hold.
Concession to New York Central.
One item considered of Importance
P.CU q
vanced is that under which the New
York Central gets direct connection
with the Virginian at Deepwater,
w. Va, including joint rates and
routes over that railway.
AS was pointed out in The Star two
days ago, such an arrangement, not
included at the time the tentative draft
Of the four-system plan was advanced,
would bring q fourth major system into
the rich West Virginia coal fields,
where the Pennsylvania, Van Swerin-
gems and B. q o. already have pene-
trated.
The new ARRANGEMENTS also give the
B. & o. and the Van Sweringens their
long-sought entrance into New York
and leaves for further study the moot
question of giving the Pennsylvania
trackage rights over the Nickel Plate
from Buffalo westward for hauling
freight in competition with the New
York Central.
The speed at which the major agree
ment was reached came as q surprise
here in view of the opinion expressed
in Washington earlier In the week by
Daniel willard, president Of the B. &
o., who would only agree that Ger
tainly within q month" the executives
would get together. Willard said that
lust q step" had been taken in the
tentative plan advanced then.
Short Lines 10 Have Protection.
The executives now are going into,
among other things, the question Of
dealing with the short lines to be taken
over, and it Is known that the commits
sion win insist on adequate protection
being given these.
The consultations may be effected
through stock acquisition, lease or out
right purchase, but in all probability
it win be through the first named me-
dunn; certainly not though the last,
which would involve too long-drawn-
out procedure, bringing in as it would
the question of valuation. AS q mat
ter Of fact, Willard, speaking only for
himself, said the stock acquisition plan
would be followed, and 1t Is reasonable
to suppose that other executives will be
Of like mind.
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