Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-06-13
EASTERN RAILWAYS
0. X. S45O,,0]0, 600.
FOUR-SYSTEN PLAN
Difficulties Which Faced
Merger Agreement Settled
at New York Meeting.
|. C. C. WILL GET RATE
RAISE PLEA NEXT WEEK
Petition fer Approval of Consoli-
dation Proposal Will Be Submit
ted Soen Afterwards.
spec;al Dispatch to The Star.

6peciai Dispatch to The Star
NEW YORK, June 13.-Dificulties
which stood in the way Of the railroads
of the East reaching an agreement on
the four trunk line merger plan were
ironed out yesterday at a meeting at
Pennsylvania Station attended by all the
leading railroad presidents of the major
Eastern lines.
Finishing touches were placed on the
plan, which will be submitted to the
Interstate Commerce Commission for
approval few days after the commits
sion receives the joint petition of all
the railroads in the country asking for
q Is per cent increase in freight rates.
Among those who attended yester-
days meeting were o. P. and M. j. Ven
Sweringen of the Chesapeake g. Ohio
Nickel Plate lires; W. w. Atterbury,
president of the Pennsylvania Patrick
E. Crowley, president of the New York
Central. and Daniel Willard, president
OF the Baltimore & Ohio.
Taken in conjunction with the
numerous conferences held recently,
designed to restore the credit of the
carriers through freight rate relief, the
newest meeting is regarded as a move
which will supplement the proposed in
creased revenues by permitting certain
economies in operation, removing
numerous uncertainties and encourag-
ing the railroads to go ahead with a
number of construction proposals which
have been held in allegiance.
Expect to Spend si5O,OOO,OCO.
Prior to yesterdays meeting it was
estimated, following informal con-
ferences with railroad officials in
various quarters, that the carriers may
be expected to spend between S4oO,-
OO0.OO0 ard S5O0000000 within a
period of three years to round out
their consultations, II their sgregment
meets with the approval OF the Inter
state Commerce Commission ana Is
not halted by Congress. :.
The freight rate proposal. which, II
Is expected, will increase trelgnt
revenues by 10 per cent after ADJUST
ments are made. or S400000,00 an
nuallv. will be placed before ire COM
mission before the close of next week
This will be followed shortly by the
ConSOllddl4JH PAOpOe"l Va 'A-N
presidents. A.,
The plan marks revision Of the
commissions own plan, which was lor
f1ve major trunk-line systems in the
Fast. It has the support OF the ad-
rninistration. inasmuch as the flrst OIL
fetal statement regarding TIE !our
system plan was made by FreslaelS
Hoover december 80, and he admltteo
having taken the initiative In bringing
While the railroad chiefs mace no
official statement following yesterday S
n1netirg-as it was held behind closed
doors and was not announced to the
rllblic-it is believed that their fsree,
roent Goes net alter in any material
way the December groupings.
ALLEGATIONS of Lines.
ALLEGATIONS of the principal lines are
as follows: , 4,,o
oo1aWare Iackawanra 81 western
and a direct connection with the Vlr-
pinian Railway at Deep Water w. va,
With Joint rates and routes over the lat
ter road.
The Pennsylvania gets the Wabash
Railway. the Detroit, Toledo & lronton
and the Norfolk 81 Western, with Ger
tain rights over the Lehigh valley
The Baltimore q O!llo lSSeiFO"
Ann Arbor the Reading and the Cen
trail Railroad of New Jersey, the west
ern Maryland and the Lehigh d Hud-
son River.
The Chesapeake & Ohio-Nlckel Piate
obtains the Lehigh Valley, the Bessemer
& Lake Erie and the Chicago d East
ern Illinois
It is not known whether the new
agreement of the carriers will go to the
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