The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-06-14
new ENGLAND
GOVERNORS AIM
RAILWAY SETUP
Proposals Ready for Quick
Action If PennSy Agrees
to Loosen Grip.
By Times Special

BIZ Times Special
NEW YORK, June lathe New
England Governors Committee,
created to readjust the railroad sit
uation in that section of the coun-
try, is scheduled to meet IN Bos-
ton today.
The governors, who will be &C
companied by their representatives
on the committee, are expected to
discuss and probably put their
stamp of approval on plans which
have been reported whipped into
shape.
The governors are set in their
determination to loosen the grip OF
the Pennsylvania Railroad, long a
sore spot in New England politics
on the transportation facilities in
that area.
That things have reached point
from which real progress is antici-
pated may be cleaned from the fact
that Martin Clement, recently cleo
ted to succeed General w. w. At
terbury as president of the PennSyl-
vania, has been invited with several
of his legal assistants to be present
at Fridays meeting. At that time it
is the purpose of the committee to
explain in detail its plan as 1t az
fects the Pennsylvania. /
To Get New Haven
The plan outlined by the COVER
norS' group is reported to provide
for the taking over by the Pennsyl-
vania of the New York, New Haven
and Hartford. On the other hand,
the New York Central, it is said,
would retain the Boston and Albany
and the Maine Central.
Moreover it is provided that the
New York Central would obtain
trackage rights between Worcester
and Providence, assuring competi-
ton for the New Haven in that area.
The Pennroad's holdings in the
Boston and Maine and in the New
Haven, would, if the plan is APP
proved, be placed in escrow, this
action being taken as a means Of
removing the influence of the Penn
sylvania in northern New England.
/. C. G.. to Get Plan
The Governors Committee is
ready to present its recommended
tionS as outlined, to the Interstate
Commerce Commission, it was as
serted.
One of the purposes of the gov
errors, it is said, is to set up a new
northern New England system to be
comprised of the Boston and Maine,
the Boston and Albany and the
Maine Central. 1t is possible that
the Delaware and Hudson may be
requested to enter the group.
Such action, it is pointed out,
would set up a system fulfilling the
pattern laid out for System One in
the plan for railroad consultations
devised late in 1881 by the Hoover
Administration.
Speed Desired
The governors groups is reported
to be anxious to clear the matter
up without undue delay prior to
July l, next, when the New Haven
has maturities of 100000 or So
100000 falling due. Since the Penn
sylvania has a stake of something
like 100000 900 in the New England
road, it is said to be felt that the
big system should undertake any
judgment which may be necessary.
1t now develops that the recent
flying trip made to Moosehead Lake
in Maine by Jesse Jones, chairman
of the RFC, had to do with some
thing a great deal more important
than fishing, as announced at the
time.
The RFC head, it is learned on
good authority, met the governors
group, which sought to ascertain if
the Federal agency would advance
the New Haven another loan with
cut collateral. Mr.. Jones is reported
to have informed them that such
move was inpOssible because of