Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-07-17

DeIore the Interstate COmmerc
Consolidation and improve,
ment of facilities in cities nov
served by both railroads vert
indicated and division of traf.
fic between two major route;
from the Midwest to the EaSr
Coast will speed up freigh
service for other cities, includ'
ing Washington. it was said.
Passenger service will be i'm
proved in cities now served b!
both lines, but will be I'M
chnged in cities now served b!
one of the lines.
The merger is expected to re.
suit in a reduction of AROUND
$500 jobs over a period of five
years, but this is less thar
the average annual decrease
caused by loss of business or
the two lines in the last ter
years, the statement said. Fol
displaced workers, the merger
will provide protection no
now available. 1t added.
SIS Million Benefit
Anticipated benefits Of the
merger will reach an estimated
SIS million a year for the CON-
bined railroad within five years
on completion of a $40 million
capital plant improvement pro-
gram which will give new i'm
petus to the national economy
the railroads said. 1t will be
partially financed through sale
Of released duplicate facilities
materials and real estate.
Greatest potential for long
term advantage of merged op-
Grafton. the announcement said
will be freight service improve
mentS resulting from:
Use of the most efficient
routes considering distance
grades and curvatures.
Additional through trains
between major cities, without
intermediate switching delays
resulting from concentrating
combined traffic on the best
routes.
Elimination of the present
time-consuming interchange OF
traffic between the two rail-
roads, and substitution of faster
through moves.
Better car utilization and
more efficient use of locomo-
tives, resulting from the merg-
ing of the equipment of both
roads.
In general. through freight
moving between the Middle
West and the New York City
and New England areas will
be routed by way of Cleveland,
Buffalo and Albany.
Pennsy Route Shown
Traffic to the Pittsburgh
Philadelphia, Baltimore and
Washington areas from Chi
cago will move to Cleveland
over present Central lines and
then over the present Pennsy
main line.
Traffic to the same three
areas from st. Louis will move
over the present PR tracks to
Terre Haute, Ind, Central tracks
to Union City, Ind, and then
PR. Trains from Cincinnati
will move over Central tracks
to Columbus. Ohio, and then
over PR lines to the three
areas.
Freight moving from as far
west as Columbus and Youngs-
town, Ohio, to all Eastern ter
minalS will be routed via Pitts
burgh, Harrisburg and Phila-
delphla In terms of tonnage,
the two streams of traffic, one
via Clevland and Buffalo and
the other via Pittsburgh and
Harrisburg. will be about equal,
the joint statement said
Changes in routes will take
full advantage of the CentraPs
new electronic classification
yards at Indianapolis and Elk
hart, Ind, and the Pennsy
facilities at Conway, Pa, the
largest classification yard in
the world. An important new
electronic classification yard is
planned at Selkirk, N. Y, near
Albany, at a cost of $19.7 mil
lion to serve the New York and
NeW England areas.
1900 Jobs Affected
"Initially the merger will re-
suit in reduction OF around
1900 jobs" the statement said.
These reductions will be spread
over a five-year period"
BY contrast, 10000 jobs have
been eliminated by the two rail-
roads in the last 10 years due
to traffic losses and increased
wages and other costs, the
statement added. This was at
a rate of about II 900 jobs per
year. None of the employees so
displaced received any protec-
tive conditions.
In their application to he
ICC the two railroads stated
that they would accept appro-
pirate conditions for the protec-
ton of employees affected.
In certain cases involving
similar problems, the ICC
has provided the so-called New
Orleans conditions" which spec
ify benefits more liberal than
those prevailing in any other
major segment of the American
industrial economy. They in
clude for those transferred to
over paying Jobs, the difference
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