The Waterbury Democrat., 1932-07-22

Washington, July 22.-(UP)- The interstate commerce c0mmis- sion has opened the way for a $9,- 8 %, 100000 system merger of eastern railroads intended to help the carriers whip the depression and truck competition which had combined against them.
 The action was a victory for New England railroad interests.
 The commission approved gen. eral plans for consolidation of more than 200 lines and 5S000 miles of track into four super-sys- tems. They would have a virtual monopoly on rail transportation in the richest shipping territory in the world. Great savings in operating costs would be possible.
 Under the approved plan, prac- tically. every railroad between Chi- cago and the Atlantic, between New England and the south, would be consolidated under the stand Pennsylvania, the Baltimore and Ohio -Nickle Plate.
 The commissions action puts the consolidation, long hailed as the only practical savior of rail trans portation. squarely up to the rail- roads themselves. The commission completely withdrew from it's original position that there be a fifth eastern system headed by the Wabash and Seaboard Air Line.
 The roads now must agree to the modified plan and then secure the commissions approval for each of scores of transactions required to complete the four systems. This may take years.
 More than 20O0 different railroad companies are concerned in the consolidation. In brief. the four party plan represents the commits sion's idea of the best possible means of building strong lines with a maximum of competition. Every large city will be served by two or more roads, as will every port and every section.
 Important effects of the plan, as modified by the commission, are:
 The New York Central. through a connection with the Lackawanna, would secure a new direct route to Chicago and gain access to Lake Michigan for operation of car fer ries to Wisconsin. It would. get the virginian and access to Virginia ports.
 The Chesapeake and ohio- Nickel Plate, the Van Sweringen line, would gain it's long sought goal, entrance into New York and use of the Pennsylvania terminal.
 The Baltimore and Ohio would get the western Maryland. It would. be strengthened by track I age rights in the Cleveland and Toledo districts and will have ac- cess to the new Cleveland terminal. It would shorten it's New York Chicago route. Between Toledo and Detroit 1t would have trackage rights over the Pere Marquette. It would get the Lehigh and Hud- son. New England gateway line.
 The Pennsylvania gets both the Norfolk and Western and the Wabash.
 one of the most important con- ditions to the commissions ap- proval is that the Pennsylvania divest itself of it's holdings. direct. and indirect, in both the New York, New Haven and Hartford and the Boston and Maine. This condition Is q victory for New England in- terests which fought proposals for inclusion of New England lines in the four-system merger.
 At present the Pennsylvania. through holdings of it's own and of the Pennroad Corporation, has great influence, though not actual control, in the operation of both of these New England lines.
 Another change concerns the Delaware and Hudson, which the four roads wanted to divide bee tween them. The commission de- clded this should be left, for the time being at least, as an independ- ont system. The commission also decided that the seaboard Air Line be loft out of the consoIidations.
 Tho Chicago. Indianapolis and Louisville, called the Monon. was nllocated to tho Baltimore and Ohio under the original plan but tho commission agreed with tho present owners. the Southern and the Ioulsviile and Nashville, that t remain q north-seuth line and not be merged into any eastswess
 Ths commission also loft tic New York. ontario and Western out of the mereers. That is owned by the New Haven.
 A. ehangod {he plan Co another iraekass rishis into ...g syrse.ss ..' s,... se provide competition with the csh' ''i' ie'emmIssIonsrs Eastman ana