Evening star., 1932-07-22

to come to the commission with their
lineup ready for approval. 1t may be
several years before this is done because
of the business situation and the low
quotations of railroads stocks and
bonds. Some financial experts believe
many security holders will refuse to
sell their stocks and bonds at present
prices. There are other steps which
will also require long and detailed work.
The new consolidation plan was put
before the carriers late yesterday the
commission seeking, by yielding on
some points and making new 5ugges-
tions, to end years of wrangling over
how consultations should be effected to
preserve competition, serve the public
and save money.
Provisions of New Plan.
BY the new plan carriers would be
grouped under the Baltimore & Ohio,
Chesapeake & Ohio Pennsylvania and
New York Central. The Delaware &,
Hudson and the Seaboard Air Line
would constitute independent systems,
while the Pennsylvania would be for
hidden entry into New England.
When the roads in october presented
their four-party suggestion, they said
If it were not approved without change
the plan would fail. What effect bust
ness conditions have had since remains
10 be seen.
The new schedule would break up the
proposed Wabash-Seaboard system;
abrogate two antitrust decisions by
authorizing the Pennsylvania to absorb
the Wabash and the Baltimore g. Ohio
to take in the Western Maryland.
nc.:r:.x, Nn< ITpa pi,,aouc
Likewise, it would leave with the
Louisville g. Nashville and the South
ern ownership of the Chicago, In
dianapolis g. Louisville the Monon)
instead of allocating one-half interest
in it to the Baltimore & Ohio.
The commission decision was not
unanimous Commissioners Eastman
and McNanamy dissented from the en-
tire plan, while Brainerd, Lee and Ma
hattie would not accept minor features.
Eastman and McManamy held the
9our-system proposal has slaughtered
the plan for the entire country which
we set up in 1929 and must be maze
over again" They objected that the
Seaboard Air Line and the Mobile
Ohio. in receiverships. would be le1t
unattached; that the commission hao
not taken cognizance OF Van Sweringen
control of the Missouri Pacific.
Lee said the Boston g. Maine should
he allowed to retain the Delaware q
Hudson; that the Baltimore q ONO
should not have in full the western
MARYLAND and the Detroit 81 Toledo
Shore Line. Mahaffle held the Detrolt
4. Toledo Shore Line should remain
with the Nickel Plate.
Entry to Philadelphia.
p..;nord felt admission into Phila-
deInhia should be allowed the Lehlgh
VALLEY. the Western Maryland and the
Norfolk &, Western should be complneo
and that New England bridge nneS
should not be disturbed
The majority of the commission:
though held the consolidation Woulu
.serve the public eftlcientiy ana eco
nomically," preserve healthful coflPe-
tition" and maintain. as far as prac-
ticable, the existing routes ana cHah-
nels of trade and commerce.
What railroad men found one OF the
biggest points in the plan. af1ectlng
lines as far west as Kansas City anu
as far south as Wadesboro, N. C., ana
bristol Tenn, was that involving tne
Pennsylvania's New England hoiulnss.
The commission ruled that aithousn
the Pennsylvania might pc Wl,,,ng l4S, ~ ~
accept the plan, it could not un.l ~
had sold or placed in the hands OF
trustees all its holdings and those OF
its subsidiaries in New England ROADS.
Holdings in Other Lines.
The Pennsylvania and its subsidiary,
the Pennroad Corporation, now nave
22.79 per cent of the New YORK, Ne"
Haven g. Hartford stock. The Penn
road has a 1925 per cent interest IN
the Boston g. Maine, OF which the Bos-
ton Railroad Holding Co.. owned py tne
New Haven has another 26.l8 per cent
As one reason for blocking Pennsyi-
yania progress into New England, the
commission said that of the $1,000 miles
included in the consolidation 3l.5 per
cent would go to the Pennsylvania, 24.o
to the Chesapeake & Ohio Nickel Plate,
% to the New York Central and 2O.3
to the Baltimore & Ohio. The COM
mission added:
The Pennsylvania system will not
only predominant in size. but most likely
in financial strength. for the properties
allocated to it earned in 1929 and 1880
a greater annual return on the invest
ment therein by about 0.5 per cent
than was earned on the properties al
located to any of its competing systems"
The decision to let the Delaware g.
Hudson remain independent and to
leave ownership of some New England
bridge lines with Few England COM
panies was considered at least par
tial victory for five Governors from that
section who sought these concessions.
Branch Topped Off.
The decision Topped off one branch
of the Delaware, Lackawanna G. West
ern and gives it to the Chesapeake g.
Ohio SO that road can reach Syracuse
and Oswego. N. Y. via Chenango Forks,
N. Y. The New York Central is given
SPECIAL NOTICES.