Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-01-01
RAILROAD MERGER
UP TO COMMISSION
Eastern Carriers Preparing
Maps and Statistics on
Consolidation Plan.
BY CHARLES F. SPEARE.

Special Dispatch to The Star.
NEW YORK, January Within two
weeks representatives of the four East
ern railroad systems that are parties
to the consolidation plan just announced
expect to appear before the Interstate
Commerce Commission and outline in
detail to that body the plans they have
formulated. Maps showing the exact
position of each Of the four lines, as
now agreed to, are being prepared and
VIII form an important part of the evil
dence submitted to the commission.
1t is realized by the railroad execu-
tives that many weeks, and possibly
months, may elapse before all of the
phases OF the consolidation are brought
into accord, not only with the views of
the commission and those of members
OF Congress. but with stockholders in
the diherent properties involved in the
negotiations. The position of railroad
labor In the new situation is also one
that obviously will compel great deal
OF serious consideration and concessions
on both sides.
Trackage Rights.
It Is understood that President Hoover
personally is to deal with the matter
OF abitrating the difference that exists
between the Pennsylvania and New
York Central interests over the cues
road along the shore of Lake Erie. No
doubt is felt that the spirit of ac-
commodation in the major concessions
already granted will be duplicated in
this minor dispute.
In explaining that portion of the Of
dcial statement regarding consolidation
that had to do with its benefits to
ment, one of the men who has been
closely identified with the recent nego-
ttations said today that as soon as the
plan was adopted a great deal of i'm
provement and extension work would be
begun that had been put aside for
years, owing to the unWillingneSs of all
OF the Eastern lines to increase capital
expenditures that might be voided by
q Encouragement Of railroad ownership
In the trunk line territory. He said, for
instance, that roads such as the Lehigh
Valley and Delaware, Lackawanna g.
western, whose ultimate ALLEGATIONS
have been in doubt for a long while,
had not been willing to embark on
programs involving heavy capital costs
when they did not know whether or not
these would be justified by future con-
sondation arrangements.
Identification Plans.
He also pointed out that the Balti-
more g. Ohio had probably postponed
any plans for electrifying its lines until
the time when it could be certain that
1t would have legal authority for hold
ing a majority control of the Reading
and Central Railroad of New Jersey
systems. When this has been granted,
1t was his opinion that definite con-
stderation viii be given to electrifying
the entire line between the New Jersey
terminal and Washington.
The significance of the proposed con-
solidation is far greater to this inmedi-
ate territory than at the Western or
Southwestern terminals of the four
roads that are parties to it, In all
probability, it will bring about not only
an active program of identification of
lines in the New York suburban dis
tricts, but terminal projects along the
New Jersey waterfront, in which the
New York Central Nickel Plate and
Baltimore & Ohio systems viii be rep
resented as joint proprietors.
1t is too early 70 discuss the financial
features of the consolidation or to esti-
mate the amounts likely TO be involved
in the trades made between the Penn
sylvania and the Nickel Plate, between
the New York Central and the Lacka-
wanna, between the New York Central
ing to the Baltimore & Ohio, or in adj
lease of the formers share Of the Read
ing to the Baltimore Ohio, or in adj
JuSLmeQLS LI1dG Will nave 10 De HldQt III
connection with permanent control OF
the Pittsburgh & WestVirginia, Wheel
ing g. Lake Erie and other independ-
ent lines. 1t is understood that the
Baltimore & Ohio will probably retain
the Western Maryland, which it had
been ordered to sell some time within
the next six months. 1t may petition
the interstate Commerce Commission
for the right to obtain one of the two
anthracite coal roads, namely 'Lehigh &
Hudson and Lehigh & New England,
which under the commissions plan,
were allocated to the New York, New
Haven 81 Hartford, which apparently
does not want them Obviously, the
Pennsylvania will retain and develop
the Wabash along more intensive lines.
Western Lines.
No figure has been presented TO indi-
cate the amount of the economies that
are expected to accrue to the four sys-
TENS through consolidation. This may
develop out of the hearings before the
Interstate Commerce Commission and
In others before Congress- The stated
saving to the Great Northern and
Northern Pacific of their proposed mer-
ger was $4,000, 900. The Northwestern
consolidation, however, involved less
than $4,000 miles of line, compared
with over $4,000 miles affected by the
Eastern merger.
(Copyright, I930)