Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-20

president Of Texas University, con-
stitutes the most elaborate study ever
conducted into the railroads py con-
gressional committee. DR.. Splawn sub
1nitted three recommendation -
The first vas D proposed amendment
to the Interstate Commerce act to
bring within the jurisdiction of the
Interstate Commerce Commission for
approval or disapproval any acquisition
Of the control Of railroad which would
result in bringing that road into af1lia-
ton with, in control Of or under the
management of another railroad,
whether the acquisition be by holding
company or otherwise
The second was that at the next ses-
sion the Interstate Commerce Com
mittee Shall give consideration to
whether or not legislation Is necessary
to deal with any past acquisitions Of
railway properties such as are disclosed
in this report, and which have not had
the approval Of the Interstate Com
merce Commission as being in the pub
Lie interest"
The third would broaden the scope
OF the investigation authorized by the
House TO include all holding COM
panieS engaged in interstate COM
merce." Splawn found that the use
of the holding company had been more
varied in other fields and suggested
the continued investigation, because
to railroads in interstate transporta-
ton.
Report Termed Partial.
Parker told the House the report was
only partial and that, since the in
vestigation into holding companies had
been started, all of them op-
Grating in interstate commerce should
be studied. Splawn explained that it
had been impossible TO complete the
investigation in this Congress
In his review Of the findings, DR..
Eplawn wrote:
THE investigation has es-
tablished that the Interstate Com
merce Commission was correct in its
belief that certain railway systems are
In desperate competition for strategic
properties, particularly in Eastern ter
rttory. The acquisitions of such hold
ing companies as the Pennroad Cor
poration Pennsylvania interests) and
the Allegheny Co. (Van Sweringen)
are notable instances.
The holding company has lent itself
as convenient fundamentally in this
terrific struggle between the railway
giants OF the East over coveted proper
ties"
The report shows interlocking direc-
torates of different railroads, and also
points out that many prominent fnan-
clerS, bankers, insurance and other men
in various businesses were large stock
holders in the railroads
Industries CONT u Line.
Delving into the intricacies Of the
various interests, the report reveals far
reaching activities of the holding COM
panieS and investment trust companies,
~ RI fnrpnQT'e nf
subsidiaries for larger railroads. In
that connection. it was pointed out that
various industries controlled several
railroads, and noted mining. lumber.
public utility, oil and manufacturing
companies.
THE directors or general officers of all
class ! railroads are directors of 1872
larger banks and trust companies" the
report said, "a flgure which may be
compared with the total Of approx
mately $4,000 banks OF all descriptions
in the United States. OF the 1872 banks
60 have resources Of 100000, 900 OF
more, "a resources Of $50, 200, 900 to
500 000, 900 and 38 resources between
$4,000, 900 and $50. 100000" II adds
they are In New York, Philadelphia
Chicago. Pittsburgh, Boston, San Fran
cisco, Baltimore, Minneapolis-St. Paul
Detroit, Cleveland and st. Louis.
Chairman Parker explained the In
terstate Commerce Commission had sci
out under the transportation act of q
decade ago TO consolidate the railroads
into 10 systems, but said 1t had beer
blocked through holding company &C.
tivities.
THE activities which may be con-
strued to impose a burden upon inter-
state commerce." the New York Re-
publican continued, which may inter
fere with congressional planning in the
public interest, have been by companies
acting beyond the jurisdiction Of the
commission, or at least as far without
the reach Of that jurisdiction as the