Evening star., 1932-07-22
Railroad Merger.

FOR years railroad mergers on ldTRS
scale. in the interest of the public AMI
better service as we'll As in the interest
of the railroads and their owners. have
been proposed. The Interstate Com
merce Commission yesterday handed
down a far-reaching report approving
consolidation of all the Eastern rail-
roads. except New England. into four
great systems 1t remains now for the
railroads themselves to accept the plan
cf merger laid down by the commission.
In the main. the commission has fol-
lowed the merger plans recommended
by the four ma ior lines, the New York
Central, the Pennsylvania, the Ba!ti-
more g. Ohio, and the Chesapeake &;
Chio-Nickel Plate. Unless. therefore,
there should arise some strong opposi-
ton to the final adjustment on the part
of one of these roads, the plan may be
put into operation. The commission
in its decision on merger plans decreed
that the Pennsylvania system must d.
vest itself of its large New England
holdings. How the Pennsylvania will
relish this remains to be seen.
Two members of the Interstate Com
merce Commission, Eastman and Nc
Manamy, dissented from the report OF
the commission, which was handed
down by Chairman Porter and con-
in hv "a oth
with three OF them concurring in part
The opposition to the merger plans on
the part of two of the commissioners is
likely to be reflected in Congress
where efforts TO prevent consultations
until after final approval of the plans
has been given by the Congress are now
under way. Chairman Couzens OF the
Senate Interstate Commerce Commit
tee has been insistent in the past upon
such reference to Congress.
The four systems proposed for the
Eastern railroads in the report of the
Interstate Commerce Commission will
place in these systems three hundred
railroads. While they look to improve
ments in service. to the strengthening
of the weaker roads by consolidation
with the stronger there will still re-
main very large measure of competi-
tion as between the systems. The
mergers should make possible many i'm
portant economies.
The willingness of the Interstate
Commerce Commission to agree upon
these merger plans was interpreted in
railroad circles today as hopeful sign
that at last something is to be done to
help the great transportation industry
OF the country back to its feet. The
railroads themselves, through their as
socistion of executives, have announced
Plans for cutting out waste and have
asked for a square deal from Congress
and the American people. so ~ their
competitors, the motor water and air
carrierr. may also be regulated by the
Federal Government.
The Interstate Commerce Commission
III IL pOl llNN Stl-SStu lllS HEeu, DdT
ticularlv at this time, Of making the
proposed railroad mergers fall as lightly
as possible on railroad labor This is
no time to throw more men out OF
work. But the time Is certainly at hand
to aid in the revival Of the railroads.
and through such mergers as are now
proposed much may be done to
strengthen the weaker roads and to
improve the stronger. One matter of
vital interest to the public will be
found in the refnancing of the roads.
Rates in later years will depend upon
the financial set-ups Of these railroad
systems. It is matter of great in
tere5t. too, to the thousands of holders
CT railroad securities. Undoubtedly the
Interstate Commerce Commission will
scrutinize these financial arrangements
with the greatest closeness.