The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-07-23
TITANIC RAIL
MERGER PLAN
is APPROVED
Commission Puts 0. K. on
Mammoth Away Com
bine Proposal.
By United Press

By United Press
WASHINGTON, July 2S.-The in
terstate commerce commission has
opened the way for a $4,000, OOO, 900
merger of eastern railroads believed
to give the carriers their greatest
opportunity for a financial come
back since depression and truck
competition combined against them.
The commission approved general
plans for consolidation of more than
200 lines and $4,000 miles of track
into four super-systems that would
have a virtual monopoly on rail
transportation in the richest shipping
territory in the world Great saw
ings 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 standards
of the New York Central, the
Pennsylvania, the Baltimore g. Ohio
and the Chesapeake & Ohio-N Nickel
Plate.
Put Up to Railroads
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 commissions approval was
conditioned upon certain changes in
the plan submitted by the four big
systems Most of the roads own
proposals were accepted. The COM
mission completely withdrew from
its original position, that there be
fifth eastern system headed by the
Wabash and Seaboard Air line
The roads now must agree to the
modified plan and then obtain the
commissions approval for each Of
the scores of transactions required
to complete the four systems. This
process may take years.
200 Lines Concerned
Over 200 different railroad COM
panies are concerned in the consoh-
dalton In brief, the four-party plan
represents the commissions idea of
the best possible means of building.
strong lines and yet retaining 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 ferries
to Wisconsin. 1t would get the Vir-
ginian and access to Virginia ports.
The Chesapeake & Ohio Nickel
Plate, the Van SWeringen line.
would gain its long sought goal, en-
trance into New York and use of
the Pennsylvania terminal.
Could Shorten Route
The Baltimore & Ohio would get
the Western Maryland. It would
be strengthened by trackage rights
in the Cleveland and Toledo dis
tricts and will have access to the
new Cleveland terminal It could
shorten its New York Chicago route.
Between Toledo and Detroit it
would have trackage rights over the
Pere Marquette. 1t would get the
Lehigh & Hudson, a New England
gateway line.
The Pennsylvania gets both the
Norfolk & Western and the Wa
bash.
Another change concerns the
Delaware 81 Hudson, which the four
roads wanted to divide between
them. The commission decided this
should be left, for the time being
at least, as an independent system.
The commission also decided that
the Seaboard Air Line be left out
Of the consultations.
The Chicago, indianapolis g.
Louisville, called the Monon, was al
located to the Baltimore 81 Ohio
under the original plan, but the
commission agreed with the present
owners, the Southern and the Louis
vile 81 Nashville, that it remain a
north-south line and not be merged
into any east-west systems.
The commission also left the New
York, Ontario & Western out of the
merger.
Commissioners Eastman and Nc
Manamy dissented to the majority
report.