Evening star., 1933-09-23
EASTMEN SURVEYS
RAIL MERGER PLAN
Proposal Would Consolidate
Large Companies Into
a Few Systems.
BY the Associated Press.

BY the Associated Press
The railroad consolidation plan, which
has been bobbing up intermittently since
1920, Is again to the fore.
Joseph B. Eastman, co-ordinator of
transportation, announced yesterday he
had undertaken study for a Nation
wide unif1cation, which would bring the
great rail network into small group Of
systems in an effort to achieve operating
economies.
Eastman added that the roads them
selves, in the Eastern. Southern and
Western regions, had formed organiZa-
lions to investigate savings that could
be brought about by joint use of IA
cilities, pooling Of train service and
other means. Advisors from these groups
are working with Eastmans Office.
Prince Plan Typical.
He has selected the Prince plan as
typical one to study. 1t was written
by j. w. Barriger. Sd, now chief ex-
aminer of the railroad section of the
Reconstruction Finance Corporation,
and presented to President Roosevelt last
Winter when the railroad situation was
being studied at the White House.
1t contemplates combination Of the
Nations railroads into seven or eight
systems formed around the New York
Central and the Pennsylvania Railroad
in the East; the Southern Railway and
the Atlantic Coast LineLouisville and
Nashville System in the South, and
others in the West.
The carriers in each of the three
religions" said Eastman. have created
organizations. headed by the regional
co-ordinating committees, which are
q ty1a
through joint use of facilities, pooling
Of train service and other similar means.
Information Sought.
Through this investigation, as check
ed and supplemented by the work Of
his own staff, the co-ordinator expects
to secure comprehensive information as
to what can be done under existing
conditions without further corporate
consolidation or unification.
Various Albitious schemes have been
suggested fYr the concentration Of the
railroads. through corporate consolida-
systems or into a single system.
Large economies are claimed for
these plans. For example, it has been
claimed by the proponents of the
Prince plan that it would save sonc-
thing like S740,000.000 in operating ex-
penses on the basis of 1882 traffic. or
about 30 per cent Of the total operat-
ing expense for that year
The co-ordinator believes that he
should check the possibility of econo-
mics which is said to inhere in such
plans and for the purpose Of such a
check he has selected the Prince plan
as typical, in view Of the fact that its
claimed economies have been indicated
dpflnifply hoe
out in much more detail than any SINH
lar plan.
1T is thought that such a check Of
the Prince plan will serve the pur-
pose of general check upon schemes
for the uniflcation of the railroads into
very few or single system, since the
purported economies would in all of
them be obtained in much the same way.
In addition to the possible econo-
mics, the effect Of such schemes upon
labor and communities and upon the
development Of the country will be con-
sidered and also their financial an
legal aspects and practicability.
Not Committed.
'It should not be understood that {
this stage Of his inquiries the &C
ordinator is in any way commit'c-
either for or against the Prince plar
or any similar plan. His preser
thought Is merely that the elaine
economies OF such schemes are so gre.
that they ought not to be disregardc
but merit careful analysis
In recent years, the consolidate
program has centered around the eff
forts Of the carriers to build up four
Eastern systems-New York Central.
Pennsylvania. Baltimore g. Ohio and
Chesapeake & Ohio-Nickle Plate.
The Interstate Commerce Commits
sion approved this plan after extensive
hearings, modifying its own five-svstem
proposal to do SO, but the matter has
Jagged.