Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-03

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is owned by the Pennroad Corporation.
The Norfolk 81 Western, Wabash. Long
Island and West jersey already are
owned by the Pennsylvania. directly and
| indirectly. This leaves nothing for the
Pennsylvania to acquire from outside
interests.
New York Central as at present To
which would be added the Lackawanna
and Ulster e. Delaware.
The New York Central already has a
substantial position in both and the
remainder necessary to constitute con-
troll is declared in the hands of friendly
interests. Consequently, New York Cen
trail has nothing to acquire from outside
| interests.
Trackage Issue Omitted.
Nothing is said in the petition about
the controversial issue of trackage
rights which the Pennsylvania sought
over the Nickel Plate along the south
shore OF Lake Erie, which would have
tied in some Of its short lines and
put it into competition with the New
York Central.
The Nickel Plate was willing, but the
stood, raised barrier that could not
be surmounted at this time, leaving the
matter one for adjudication later.
It is the understanding that under
the circumstances, the Pennsylvania re-
Trained from pressing its claim, and the
New York Central also withdrew GER
tain demands.
Another issue, that Of disposition of
the Virginian, a coal road, is proposed
tn ha hU allONafinO hAfUaAr
the Pennsylvania and Chesapeake e.
Ohio, giving the New York Central joint
rates and through routes over it. This
will give the Central an outlet at Hamp-
ton Roads. The Virginian is owned by
the estate of H. H. Rogers.
Bridge Lines Covered.
The petition also takes care Of the
ALLEGATION of the various so-called bridge
lines among the four parties, which will
give all equal and open access to the
burgh district
Trackags rights and ALLEGATION of
short lines in the respective areas also
are covered In the petition.
The prices of stock to be acquired
under the plan does not enter at this
time, but will be treated later in indi-
vidual cases.
Out Of the grouping the Van Swer-
ingen lines would be afforded facilities
for operating passenger trains into the
Pennsylvania Station in New York. an
advantage which they do not now
possess.
In asking for a four instead Of
five system grouping, the railroads are
setting up the contention that there
are not enough lines in the Eastern
region to permit five groups and give
each chance to earn a living
The four-system set-up. it is argued,
will serve all points in Eastern terri
tory with at least two competitive sys-
TENS, each Of which would have access
to at least two Atlantic ports, and prac-
tically even access to both anthracite
and bituminous coal.
New Balance Is Seen.
The executives say their plan will
eliminate waSteful duplication in Serv-
ice and plant equipment without clos
ing any Of the established routes OF
traffic trade or travel; that the capital
structure of the four will be as evenly
balanced as Is possible to balance
them. and their earning power also
will be as evenly balanced as possible.
In round figures. the total mileage
would be:
Pennsylvania, $500 miles; New York
Central, $4,000; Chesapeake Il Ohio
Nickel Plate, 1880. and Baltimore &
Ohio, IL ,000
If the commission. in making its
decision, should realign the ALLEGATIONS
differently than Is proposed by the rail-
roads, the latter are not bound to their
agreed plan, but such action would re-
suit in the whole thing going back into
negotiation.
Under the flve-system proposal of the
commission there was a provision for a
MISUNDERSTANDING system. The Sea-
board, now in receiverShip, does not
enter into the present case, but the
Wabash, as is said, is to go to the Penn
sylvania The Encouragement also calls
for number of other shifts.
To sanction the four-System plan the
commission would have to vacate anti
trust orders under which the Baltimore
& Ohio was ordered to get out of West
ern Maryland. and the Pennsylvania
to relinquish holdings in the Wabash.