The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1937-11-04
Dismembering
of St. L. Still
Aim of Roads
WILL CONTINUE FIGHT
IN FACE OF BLOW
TO SCHEME

Although the unfavorable re-
port given their plans by inter
state commerce commission eX-
aminers was admittedly seri-
Gus setback, railroads backing
the proposal to dismember the M
and ST. L railroad and divide
much of its trackage among them,
indicated this week that they will
continue their fight to take over
the road.
It is expected that the attor-
neys from the seven roads which
would parcel out the M and st. L,
abandoning unwanted sectors,
will file exceptions to the examin-
ers' report before November IT.,
the deadline set, or ask more
time.
The proposed dismemberment
has been vigorously opposed 10
cally and by Redwood and Rem
vile county towns which it
serves, during the two year fight.
Moves to obtain a $4,000, 900
RIG loan to finance reorganiza-
ton of the road under the bank
ruptcy law, were undertaken fol-
lowing the publication of the re-
port.
Considering Loan
Senator Henrik Shipstead,
chairman of an investigating COM
mittee that delved into the Asso-
ciated Railways proposal 16
months ago, announced that he
had conferred on the report with
Chairman Jesse H. Jones of REC
and would go into the situation
with Jones at later meeting.
c. E. Boles, assistant finance
director of the ICC, in 400 page
report based on information
gathered at a series of hearings
and from other sources, recon-
mended that the ice refuse the
seven railroads permission to
carry out the ACKNOWLEDGMENT
plan.
The seven roads, the North
Western, Burlington, Milwaukee,
Rock Island, Great Northern, I'LL
nois Central and the 500 Line,
have formed the Associated Rail
ways Co. for the purpose of buy
ing in the property at foreclos-
ure for $7,200,000, which they
propose to borrow from the Re-
construction Finance corporation
The M and st. L has been in re-
Ownership Is years, and has bea,l
offered at auction with no bid
ders. ... ...-
In his report to the commits
sion Boles said that the proposal
to abandon 40 miles of track
would leave without rail service
AZ towns which in 1880 had a
total population of 1905; that it
would mean dismissal of about
1900 employees and that the sew
en- roads in dividing the remain
ing 1,19O miles did not attempt
to preserve competition, but
rather to prevent competition or
remove it, .f
Picked Worst Period
w. P. Bartel, secretary of the
ICC, said the Boles report is in
the nature of findings and recon-
mendations, and is not final. AL
interested parties will be given
opportunity to file objections
Bartel said, and if any are filed
the commission will set date for
arguments.
The Boles report said the only
justification of the proposed dis
memberment was found in the
contention of applicants that the
NJ and st. L cannot be continued
as a private carrier, but he added
that the Associated Railways used
period in the worst business
depression" to illustrate the lines
condition.
While the plan would strength
en- the seven participating car
riers, Boles said, the plan will
not promote the public interest, -
investments in grain elevators,
coal and bulk oil stations and
lumber yards in the AZ towns left
without rail service would be a
total loss or greatly deprecated
should the plan be carried out,
he declared.