Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-11-10
HEARINGS WILL AIR
RAIL MERGER PLAN
Four System Consolidation
Will Be Put Up to |. C. C.
Beginning January 6.

The Eastern railroad consolidation
plan has taken another step forward.
lie Interstate Commerce Commits
sion announced yesterday afternoon
that hearings will start on January 6
on the proposal of the carriers that
they be permitted to merge into four
great systems-Pennsylvan New York
Central. Baltimore & Ohio and Chesa-
peake IL Ohio-Nickel Plate, generally
known as the Van Sweringen lines.
Commissioner Claude r. Porter will
conduct the inquiry. assisted by Ex-
aminer Irving L. Koch.
Will Present urSystem Plan.
The hearing will be on the applica-
ton of the lines that the four system
plan they have devised be accepted
instead OF that for five systems which
the commission proposed in 1929 in a
21-system set-up for the entire country.
If this new principle is accepted, the
carriers then will come in and seek
approval for the purchases or con-
solldations necessary to effect the re-
spective mergers, although much al
ready has been done along this line.
The four-System idea does away with
the Wabash-Seaboard system, which
was the fifth in the commission line
up. Since that was promulgated, the
and the carriers, in their suggested
grouping, would dismember the North
ern end of the original layout. allocat-
ing the roads otherwise.
Porter Favored Four-Line Plan.
Commissioner Porter had charge of
the original consolidation inquiry
which was instituted in compliance
with the transportation act of 1920,
which advanced the consolidation
scheme.
Porter, in a dissenting opinion in
the 1929 plan, suggested a four-system
merger, based in general on the group
ingS now suggested, but differing in
respects from it.
The commissions announcement of
the hearing will go to the Governors of
all the States traversed by the lines
involved in the proposal, and they in
turn will notify the interests in thei'
commemorative which desire to be
heard.
1t is expected that the probe will
be a lengthy affair and months are
expected to be consumed before any,
thing definite is accomplished, particu-
larly If move now on foot to give
Congress the final word in the matter
is successful.
Labor Seeks Congress Veto.
The way things now stand the COM
mission itself has the authority to pass
on the plan, but in both Senate and
House a determined effort is expected
to be made to change this.
This movement has the support of
organized railroad labor, which already
has thousands Of men in the ranks of
the unemployed and fears further cuts
If the consolidation were to be effected.
The consolidation hearings, which will
affect some $10,000,0O0 900 worth of
property, will start just about a year
from the date when it was first an
nounced at the White House that the
carriers were formulating this plan in
an effort to bolster their economic struc-
ture.
Two Members Critical.
Months were consumed in working
out the details, the carriers in the
meantime graphing with the freight
rate question. When the present plan
was submitted the sponsors expressed
the belief that it was the best that
could be worked out and at the same
time protect all the interests involved.
Eight of the eleven members of the
commission which drew up the five
system plan still are in Office. including
commissioners Eastman and McMan-
amy, who, the record shows were criti-
cal OF the whole subject of consolidation
and opposed cutting down the groupings
over the entire country to a minimum.
although they, as well as Porter. Joined
with the majority in presenting the re-
port.