Evening star., 1939-05-10
Rail Experts Advocate
Mergers 10 Reduce
Competition
Program Of Roosevelt
Committee Pruised
By Horrimon
BY the Associat ated Press.


mendations that railroads reorgan-
ize and consolidate some Of their
existing competitive facilities were
presented today to an economic con-
ference of the National Association
of Mutual Savings Banks.
Representatives Of 5000 900 de-
positors, whose savings exceed $10,-
900 900, 900, heard four railroad ex-
perts discuss the financial situation
of the carriers in which banks hold
heavy investments.
w. Avereu Hartman, chairman
of the board of the Union Pacific
Railroad, said in an address pre-
pared for delivery before the bank
ers that the recommendations Of
President Roosevelt's committee of
six, which surveyed the rail situa-
ton, constituted "a practical pro-
gram"
He said: Adoption of thorecom-
mendation of the six-man commit
tee (three from railroads and three
from labor, now incorporated in
substance in a bill proposed by Sen
ator Wheeler, will, am satisfied,
lead to the development Of sound
systems by voluntary mergers.
II believe in the retention of
competition in the railroad indus
try. The art has not been suffi-
GENTLY developed to stand the in
ertia that comes from complete
monopoly. On the other hand, re-
tention of competition between main
terminals is all that is needed"
Cunningham Disaxrees.
Exception to this final observa-
ton was taken by several speakers,
including William J. Cunningham,
professor of transportation OF Har-
ward, who said the Association OF
American Railroads had been given
surveys of more than 5000 termi-
nal projects in which there were
admitted potential economies Of
about S25 900, 900 annually"
Said DR.. Cunningham:
There is ground for the criticism
that railroads should not expect to
receive sympathetic support from
the public in the plea for more net
income in the legislative proposals
now under consideration by Con-
gress when an opportunity to save
large sums by coordination and
elimination of wasteful duplication
of facilities and service Is blocked
by the selfish interests of individual
companies
Marion NJ Caskie, chairman of
the Interstate Commerce Commis-
sion. said: That reorganizations
would be helpful is quite clear; that
they will constitute an adequate
remedy for railroad troubles is not
at all clear. -
The holders Of railroad bonds,
with few exceptions, and many Of
the holders of railroad stocks bought
their securities for purposes Of con-
servative investment. No one can
contemplate the wiping out by re-
organizations of the equities or in
terests of large groups of such hold
ers without the keenest regret.
Economies Foreseen.
"The present railroad setup. with
tits great number of independent
individual carriers, inherently is
wasteful, and real and important
opportunities exist for economy and
efficiency of service by consolida ton
| or coordination or q combination
of both"
Henry Bruere. president Of the
Bowery Savings Bank of New York
and chairman of the Bank Associa-
tons Committee on Railroads, said
of the committee of six:
I'VE are not. I will confess, IN
agreement with some of the i'm
portant recommendations which the
committee made. But We must re-
joice that holiday was taken from
divided activity as between labor
and management in legislative ef-
fort, and that a united program
was adopted to which, I under
stand, both parties steadfastly have
adhered"
Bruere said the bankers were op-
posed to relieving the l. C. c. Of
responsibility in railroad reorgan-
izations," asserting: I'VE do not
wish to jeopardize plans for reor-
ganization already as we'll advanced
as continued low earnings permit" ="