Evening star., 1932-08-02
Railway Consolidation Plan
Met With General Approval

Generally agreeing that railways are
in need Of such aid, the press Of the
country predicts that economy and ef-
ficiency in operation will be produced
by the proposed grouping of Eastern
railroads into four great groups. 1t Is
foreseen that, in spite of the fact that
it probably will take several years to
perfect details, immediate beneficial
effects on the whole business situation,
as well as to the railways, will result.
Approval of the plan by the Interstate
Commerce Commission is commended,
though it is pointed out by some COM
ments that the consultations already
actually are in operation
Referring to the main branches as
the New York Central, the Pennsyl-
vania, the Baltimore & Ohio and the
Chesapeake &5 Ohio-Nickel Plate roads.
the New York Sun points out that the
project would merge into these four
groups virtually all the trunk line
England" OF the opinion that the
woject marks important progress
toward solution of the transportation
problems" the Sun suggests that "the
lob probably will not be completed for
wears, but it should not take long for
some favorable effects of the decision
to be felt" and advises that much
railroad investment will have to be
written off, and it can be done with
the least aggregate loss if that process
is preceded by general mergers"
The program appeals to the Phila-
delphia Evening Bulletin as IN the
direction of economy in railroad man
agement and administration, g. virtue
Gov SNNer
that naDer believes that 1T should be
an aid in the recovery OF the normal
status Of railroad enterprise" The
Baltimore Sun is convinced that II
the plan is accepted by the railroads,
it should aid them materially in work
ing out of the chaos in which they
have been involved since consolidation
was proposed as the answer to their
various problems" The Chicago Daily
News thinks that "the important de-
cision should mark the turning point
in the present abnormally low condi-
ton of production and trade" and thai
with better prospects thus presented,
every form of business enterprise can
move forward with new courage TO
possess itself Of the unfolding oppor-
tunitieS within its reach" The Daily
News recognizes that the considera-
ifest needs of the railroads marks
cheering reversal Of former policies re-
flecting a bureaucratic rigidity which
discouraged railroad enterprise"
While maintaining that Virginia
would much prefer to see its railroads
left alone" the Roanoke world d.News
holds that tass action OF the commission
lis Se,.s;ed - Es a. AS:9Sc.e t.sAaEd
step toward the proposed consolidation"
and that the present plan ''is infinitely
to be preferred to the former plan an
nounced by the commission some years
ago." The World-News concludes:
Faced by (. -.ew competition that has
no cost for right of way and no union
restrictions; forcec to maintain waste
full competitive conditions, and handl-
capped by an expsnive form of Gov
ernment regulation, railroads OF this
country are facing a crisis not entirely
due to reduced car loadings or diverted
traffic. Immediate consolidation into
strong and effective systems is held
by many to be the solution Of a prob
lem now growing more difficult every
day. Sufficient time must be given to
States and cities to study this latest
proposal"
1T is a hopeful sign" declares the
Fort Worth Star Telegram, that the
railroads of the country, through their
respective arrangements, are earnestly
and harmoriously engaged in working
out practicable methods of self-help.
The railroads cannot be spared by the
productive forces of the country. The
work of eliminating waste in trans
.portation revenues expressed in un-
necessary costs and of increasing the
service performed for passengers and
shippers should have the sympathetic
support of all who realize to how great
a degree the prosperity of the country |
is still dependent upon the railroads"
y
AdyocatinRs withdrawal Of some Of