The Waterbury Democrat., 1931-03-26

conditions; (D strong grounds fO
 belief that best results to sh.ppin,
 public fin operating efficiency, service
 and rnses are obtained from smalle
 railroad systems, VAOse executives
 can maintain personal contact witt
 shippers and keep informed of the.
 competitive problems, needs. an,
 prospects; CD great cOnsOlidatet
 systems, if financially successful, vii
 be powerful, arrogant, and indiffer
 ent to needs of shippers; O) whole
 sale consolidation of railroads wOult result in unecOnOn cal and unwieid,
 operation; CD consultations will re suit in imitation of securities, prOdi' gality of expenditures, and huge profits of promoters, and the result Ing greater burden will be placed or the neck or back of the shipper; (Sl the shipping public has not advocated consolidation, and the consolidation sentiment is artificial and enianatcs from a small group in financial cir- cIes that seek profits from sales or exchanges of securities; O no cal shortage has been experienced in five years and the war-time conditions that prompted suggestions Ob cOnsoli- datiOn have diSappeared; and tlO) n0 feasible or practicabie pihh or con sOIidating railroads into limited number of systems can be developed or imposed by the government. The whole scheme is iliusOry."
 Asking what is the sound position to take in dealing with the problem of railroad consolidation, Congress- man GOss stated:
 "EIusive features; It should be borne in mind, in considering any statutory plan of consultations, that the government may be unable to compel complete performance or any plan of consolidation Whidi one o' it's agencies approves. It may re- auire from to 20 years to WOrk ont n given plan of railroad cOnsOli- dalton, The United States govern ment has very little power or author ity in connection with the cOnsolida- missions can approve proposed plah' and the only effect that apprOvai mas is tO protect those who participate in the consolidation from prOsecu- tiOn for violation of the sherman antitrust act. Tle cOnsOlidatOrs may bring forward a plan of consolidation in writing which, if carried Out' would merge or consolidate many strong and financially weak hhes. Al the time the cOnSOiidatOrs present their plan tO the cOmmissio" ,ne! N not have discussed the matter with fine management of many of the cor pOratiOns named in the plan. Cn- iOubtedIy they have not then po"Shs all of the capital stock or man! oA the corporations involved. Ihe piI. is merely an expression of hope. 1T and when the plan is approved D! fhe interstate commerce commission the cOnsOlidatOrs start to buy or ac- auire the capital stocks or the cor pOratiOns to he consolidated ana that sffort may continue for several years. The corporations that Gicy acquire control of can be consolidated. Ihose that they can not buy control or either by reasons of the owners nrice being too high or the cOhso'- dntors' offer being too low. can ,r'... m"s he included in the consolidation. Ihc substunce is that the government may auslorize certain consonda- tiOn. involving the merging or cer tan weak lines with strong lihes. anu at the end of two years or hVe years find that the consolaa!ors nn" u .t;ns sOiiGated only the choice prOpeftes and left out the weak lines because they could not buy them at a satis- price. And in such case eie can not unscramDie tnat mart of the cOnsOlida ton which is ac- s"muIishcd nor compel the cOnsOiida- tors to buy and take in the weak lines ut price which they do not elect to pay.
 ..COmn sSi0n'S recOmmenda | referred to the fact that shc in it's letter of teDfuaF! 4. 1925. recommended amendment OH section ! of the interstate commerce net which, if made, would have re- Iieyed it of the duty of prOmuiSatihs the 21-system plan Of consohHation which i, published on Deeeih"er "' 1923. Ic,
 ..Subparagraph (a) of section (o of the interstate commerce act pfo- ydes that when any NOiuhthr! cVH solidutions are proposed, by apphca- tion to the commission. the plan must xxif of the complete plan of cOnsoildation' The complete plan of cDnSOiiuatioh i' the 21-system plan published D! ume commission on December o' Io~o Whenever relatively smaii p"n consoI. .dation is laid before the com mission now it must conform With the .1-sys.em strait-jacket or the commission must amend or eh""Se the strait-jackct. ,...
 ..,f the recOn menda tiOns in the co,,missiOn'S letter. of Februar! 4' 10na. were adopted and passed by "" congress. then the ssrait-Jacket ol 'he nI iaroe systems would be remOVed' and appropriate cOnsoliua.iohs' especially smaller cOnsOiidat-oh ui- tnted by sound business principles '.nmld he proposed and approved. in fact, the reasons suggested DE th. ,Lxncutes of consolidation iehu stronger support to the smaller an" more elastic voluntary ronso'lohtrons than to the commissions prescriDed 2I-system plan.'
 The four trunk line system plan according to Congressman Goss' mas not been submitted by formal petl- lion to the Interstate Commerce He states:
 "Referring to the proposed four trunk line system descri"en m LII" speech of Representauve farkeT the house of represehtatNes ""
 unry $. 1881.
 ..S,bnt plan kas not been submitted to the interstate commerce commas sion by means of formal pehu0h or ion, the only means oi uD trihunaI. do not understand that the congress, or any or its comht tees, contemplate taking dehnte ac- on on the 4-system plan. cn" Iiscuss that plan here as an interest ;u,- nbnSe of the raiIrOad-cOnsOi1da- .;.s,, ,,rnI.Ien hut can not deal with ii as a matter presented formally "h- fer conditions calling for definite ac- lion by any agency Of the govern Hhent. ,, u,,,
 "It IIould he borne in mind ma. two plans of statutory treatment or fine ra IrOad consolidation problem are before congress at the present time. ;,
 "Ffrst, the consolidation or aii T" road property in the Cnited stn'eS ;ntn n limited number of systems un- der a general plan promulgated by the inter state commerce. commissioh' Tint k the present statutory pidh' ,s reaected i'm section ! of the inter stnte commerce act, and the implied means of enforcement Is denial. bs fine Interstate commerce cOmmissiOn' of any application for consolidation that js not in harmony with tlat DIon. Of course. consultations ef- fected without obtaining the approVni Df the comm. ssiOn may incur prose- rution for violation of the sherman nnti-trust act. This. in substance and effect, is a statutory strait-Jacket In so far ns small meritOriOus, con snIisIntfOns. not fin conformity with the general impraeticabIe plan, ma! be involved.
 "Second, voluntary consultations, ,s initiated by parties or railroad to be approved by the .onrIn issiOn if and when the merits 0f