Evening star., 1932-04-16
VIEWS CONFLICT
|. ON 4-ROAD MERGER
Eastern. Roads Attorneys
Tells |. c. c. Urgency, as
Labor Attacks Plan.
Nv the Associated Press.

By the Associated Press.
Conflicting views of railway executives
and employees on the four-system con-
solidation plan for Eastern railroads
were presented today to the Interstate
Commerce Commission.
Attorneys for the carriers called to
the attention Of the commission the
urgent Importance" of Fastening con-
Solidation.
At the same time the commission was
urged by railway labor to refuse ap-
proval Of the consolidation plan. The
opposition. presented in a brief. was
based on the fear that the commission
might. in modifying its 1929 consolida-
ton plan, commit itself to approval of
consultations that would cause many
railroad workers to lose their Jobs.
Against Public Interest"
I'VE desire to make 1t entirely clear"
said the brief filed by Donald r. Rich
berg, counsel for the Railway Labor
Executives Association, that the en-
ployes of the railroads here involved
are opposed to the four system plan as
a whole on the ground that the pro-
the public interest, and we earnestly
request that the commission take no
action upon the present record which
will In any way commit the commission
to approval of any consolidation of rail-
roads which may be proposed in con-
formity with said plan"
In 263-page brief reviewing in de-
tail the plan broached by the Chcsa-
peake e. Ohio, Baltimore &, Ohio,
Pennsylvania and New York Central
systems for creating four great railroad
systems in the East, attorneys for three
Of the applicants pointed to failure of
recapture provisions of the 1920 trans
portation act as one of the reasons for
speed. The New York Central was
not among the signers Of the brief.
thine for Settlement"
1T is felt" the document set forth,
that the time has arrived when this
matter should be promptly settled if
possible. We are facing difficult con-
ditions which cannot be met by hesi-
tation or solved by way of uncertainty
and confusion. Other proposals
may be easily set UPON paper But
which has the essential and persuasive
merit of reasonably assured fulfill
ment."
The provision for recapture as a
means of adjusting the earning power
as between the weaker and stronger sys-
tens pending consolidation" said the
brief, has obviously failed of its pur-
pose. 1t is, therefore, matter of urgent
Importance that consultations be made
effective with the least practicable de-
lay. Otherwise. the confusion incident
to the present period of transition and
the partial consultations or groupings
which have already been made will re-
suit in increased Generalization of our
transportation service and may endan-
ger the entire policy of the transporta-
ton act"
An extensive Interpretation Of the
purposes of this act, passed in 1920, was
included. The law, said the brief,
sought to build upon past experience
and in the light of that experience to
anticipate as far as possible the prob
lens incident to postwar readjust-
ments. 1t was founded on the theory
of the essential economic unity Of the
country. 1t sought to establish the ma
tional character Of our transportation
agencies ="
Defective in Particulars.
Though the law was sound In its
essential principles, experience has
demonstrated that it was defective in
some particulars.
Much remains to be done The laws
and regulations must be adapted to
changing conditions; the various
agencies Of transportation must be CO.
ordinated and placed under similar
control and regulation; where the law
is weak or inadequate it must be
strengthened. But the beneficial
purposes of the act can be accom-
plished.
The provision for the consolida-
ton of the railroads of the continental
United States into limited number of
fairly balanced systems was the general
feature around which the entire plan
of the act was constructed. 1t was
recognized that this would require some
time. The bill as it passed the Senate
provided for compulsory consolidation
after seven years. This was stricken
out in conference, but it was an indi-
cation of the time within which it was
expected that this policy might be car
ried into effect"