Evening star., 1932-09-24
RAIL HEADS AGREE
. ON MERGER PLANS
|. FOR 0REASTERNL|NES
Spread of Consolidation Idea
to Other Sections Ex-
pected to Result.
ROADS IN NORTHWEST
MAY NEGOTIATE AGAIN
Four Huge Systems, Involving
$s,ooo,ooo,ooo in Properties,
Now Nearing Reality.
Py the Associated Press.

Py the Associated Press
NEW YORK, September 24-Nov
that Eastern trunk line leaders have
agreed among themselves on CONSOLE
cation under four systems of s8OOO-
ooo,o0O in railroad properties, informed
circles mere believed today that the way
VIII be open to huge unifcations in
other parts of the country.
! The Eastern situation was adnittedlv
the most complicated aspect of general
railroad consolidation and with the an
nouncement of the accord the chances
Tor other consolidation agreements to
follow was described as good.
The New York Times SAYS that in the
northwest, for example, it is believed
possible that efforts to merge the Great
Northern and Northern Pacific. which
nave been in abeyance for two wears
LI1y pc resumed as result of the East
eIn development, which came YESTERDAY.
Differences Are Composed.
After comforting for three hours the
ntaoS OF the New York Central, Penn
sylvania, Baltimore & Ohio and Chesa-
peake & Ohio announced they had
reached an accord on the modified pIan
recently approved by the Interstate
commerce Commission for Consolidating
all carriers in this territory into f0IIT
major systems. They said thnv had
composed all differences between them
selves arising from the plan.
Inc statement added that the plan
olc not include the New England lines
except the Boston G. Albany Railroad,
leased to the New York Central. and that
| that question was not considered This
referred TO the Pennsylvania's hoIdirpS
olrect and indirect, of the New York,
New Haven & Hartford and Boston g.
Maine, which the Commerce Commits
sion ruled the PENNSYLVANIA shoIlId
dispose OF as a condition to fuldl.ment
OF Its merger plan.
Rail Stocks Go Up.
Leading rail stocks closed ST TO 50 a
( share higher yesterday, rejecting a ten
oency IN railroad circles to look upon
the accord as long step forward in the
| l2-year effort toward actual un.fea-
ton. The New York Times was in
| formed that great economies VIII be
| made possible in the East to Offset de-
clineS in revenues.
The Times interpreted Yesterdays
statement as meaning that the question
OF the PennsylVania'S holdings in New
York, New Haven & Hartford and the
Boston & Maine has been left by the
other three trunk lines for the Penn
sylvania and the Interstate Commerce
Commission to decide between them
selves.
Coolidge to Aid Probe.
Formation Of a national railway
commission. headed by former Presi-
dent Calvin Coolidge, was understood
in Wall Street today to have teen vir-
tually completed and a formal an
nouncement was expected within the
next few days.
The commission. which is to make a
thorough study of the national trans
portation problem with the view of
later recommending congressional ac-
ton to eradicate the existing sore spots.
is to be sponsored. it was said, by the
National Association of Mutual Savings
Banks, ether large financial institutions,
insurance companies and important
public organizations.
The commission will be nom partisan
and free in every respect and will act
upon It's own Initiative in conducting
| the railway inquiry.
The commissioners will receive no
salaries or other compensation for their
work. but will contribute their services
as public duty