Show h East Eastern Railroads en Agree ree on n System 4 Consolidation ati r PI n i Community Pr Protection o t Provided Under New Proposal Hoover Hoove Ais Asks Rail ail Chiefs Chief to Map Out Consolidation Consoli dation I I L S C C. CC C MUS' MUS MUST APPROVE Wabash Seaboard ar l System 1 t to Be A Abolished WASHINGTON Dec Doe 30 Press Agreement Preas Agreement of eastern easten railroads on a consolidation int into four independent systems system was waa an announced announced an n today by President Hoover r. r The president had asked the railroad rail mil road chiefs tol to map out the consoli dation Only one minor point remains tobo to tobe tobo bo be worked out In the gigantic consolidation con con con- scheme ch me That h has baa been beert n left to arbitration Tho Tim railroads are the tho Pennsylvania Pennsyl vania vanla th tho New York Central th the Baltimore t. t Ohio and the Nickel NickelPlate NickelPlate Plate systems ONE PLAN ABANDONED I IThe The Seaboard systems system provided for lor under tho the to commerce commissions commission's plan h issued sue last December would b be bo aban aban- S President Hoover understands th the tho- plan provides for tor the tho protection ot ot f and of local communities an and l fulfills the Intent expressed 1 loathe transportation act ct of ot 1920 v The rhe consolidation program must be ho submitted to the tho tnt Interstate com com- merce melce commission for approval The president said ho believed tho the plan will contribute to opportunities for employment in the present relent de depression de dc- pre lon and also Increase the sta stability Staf o of or the railroads railroads' themselves Ho He also expressed sed the tho b belief that eventually would 1 result In lower rat rates t to the he public ImbUe CAUSE D DISAGREEMENT GREEME T The interstate commerce commis slon alon a a year ago ago laid out a 11 plan lookIng looking look look- Ing to th the development o of ot five great trunk lines but objections to the tho fifth trunk line Une ca caused eed disagreement greem nt among railroad r ders Th flip Tho new plan provides f for i the rall Va way on the south and the NewYork NeWYork New New- NewYork York Central Centrals Centrals' on the north as as' as the tho boundary roads In the Jho movement The interstate commerce commission commis I sion slon the president said sala has no power to 10 force consolidations but under the transportation act of ot 1920 has the tho power to i approve such ar a move The Thie text of the tho presidents president's state statement stat ment follows V As 4 a n result of ot meetings of ot General Gen Can eral Atterbury Mr Crowley Mr Willard Van and other representatives of ot tho the Penn Penn- sylvania New York Central Nickel NickelPlate Plate and nd Baltimore Ohio railroads railroads rail mil roads a n plan for tor cons consolidation of or the different different- railways In official classification territory except New Eng England S Into four independent sy 81 Continued on page pago 7 T I C Community Protection a Provided Under New Nev Proposal al Continued from page 1 I tema was greed agreed up upon n. n for tor presentation presenta presenta- tion UOn to the tho interstate commerce commission S Tho four n new w systems embrace tho territory cast of the Mississippi the river Including the Virginian railway railway rail rail- way oy on the south tho the New York lork Central on th the north TO AID WEAK ROADS These negotiations have been In progress for some soma weeks and were undertaken at nt my suggestion in the hope of effecting tho the consolidation i policies declared b by congress In ln 1920 1320 and especially t this time as asit it n. contribution to the recovery of ot b business sll ess by enlarging opportunity for arid employment arid by increasing tho financial stability or of al nfl the tho railways and p particularly somo some of ot the weaker welker roads i iThe I The tr transportation act passed b by congress cong in 1920 1020 provides for tor a con con- of oC in railways s Into a limited number of f strong systems in order to maintain broader competition more moro adequate unto service simplification s tion of ot rato structure lower lOwel operating oper oper- costs and In th tho long run lower low low- cr er tes I t to the public During the t post past 10 years a apos pos poe grouping of ot tho so as to catTy carry out the law has been heen under constant discussion The Th commerce commission has no power to compel such fI consolidations The Th They c call n only onh b be bo effected upon In initiation initia tion of tho ot-tho tho carriers carrier During this period a number oi ot negotiations have been undertaken kor In lit respect to theeo theo railways with Ith view o 10 car carrying put ut tho wishes ol ot congress but they Lave have proved abortive c r A year ago th the tho interstate commerce corn com merce commission Issued a suggest suggest- od 01 plan for tor consolidating these roads Into f five Ivo fI systems This plan like others has met with objections which apparently made de It an un- un un- un basis basEs DEVELOPMENT RETARDED W I These Theeo uncertainties and nd dela delays s over nearly 10 years cars have seriously retarded development of or tho the railways rail rail- ways way and have prevented a desirable desirable desirable desir desir- able growth in many directions and have diminished their ability to comp compete t with other oth r forms of of trans I Such questions n as elec electrification t li Uon linking up irp of of railroads development of ot terminals and many other major improvements improvements improve improve- ments have been retarded because o of uncertainty with respect to the position which particular roads are areto re to occupy in tho perm permanent nent group group- Ing ig It is Ismy my understanding that the plan provides for fol tho tim t protection o otho of the tho Int interests r b of the and am full fuU consideration of the the Interest of the tho various communities and carries out the tho r requirements ot of tho law in prot protection ct n of or public interest gener gener- ally The Tho presidents of oC tho the major systems ms havo agreed upon the many details of ot the t plan with tho the exception ex cx- caption of ot a a. minor point which is l left Ift ff to arbitration S j The plan of or course must be submitted to the tho interstate commerce comm com corn m merce rCa commission who the havo-the In Independent dependent dut duty to determine ml o if IC It t meets with every requirement acquirement of p interest t. t BOARD IS 18 SILENT Meanwhile members of ot tho the interstate interstate inter Inter- state commerce commission declIned de de declined dined to comment on published re reports orts of or the new t plan Tho The American I Railway lon Uon officials also refrained from any any immediate announcement of details of t the t proposed plan pIan K R. H. H Aishton president of ot the lon tion conferred late Jato yesterday with PresIdent Hoover Shortly before Mr Hoover made mad the announcement ho conferred with ith Chairman of ot the son sen senate ate ato interstate Commerce commerce committee commit commit- tee who has a n bill pending to suspend sus sue pend vend for tor ono year ear all raUw railway y con- con In railroad circles it was wae WM stated that at although there had been agreement agree asree- ment meat as to virtually a all aU points the consolidation plan hd hid not yet ct et been reduced to writing This is to be dono ilono at future Tho The report that tho the Nickel PJ Plate Plat te and Baltimore tc fc Ohio had at las last succeeded in getting the theli long sought ht entry into New York City was said to be bo sub substantially cor- cor car cor reel S Under the plan Plan lan as unde understood tood by railroad meri men tiie the Pennsylvania railroad would turn over th the tho Lehigh V Valley l railroad to the tho Nickel Plate the Nickel Plate to would o claims claim to the thc Delaware Lackawanna f Western tern to tho the New York Central and th Iii New Newt Y York rk Central would cede cde its int Interest rest in the tho Reading company company which controls the Central Central Cen Cen- of of- New Jersey to the tho the Baltimore Balti Balti- moro more Ohio Thus tho the Nickel NickelPlate Plato Plate and Baltimore Ohio get set lines Inca direct into New York City In return for its contribution to ho tho plan tho the Pennsylvania would secure rights over the Nickel Plato along ng tho south shore of oC Lake Lako Erl Erie This was the tho big stumbling block to the plan It u was understood tho New York Central objected to tho Pennsylvania hanla getting getting get get- ting the tho tights rights which give It els easy access t to Buffalo Buff dlo PLAN IS STUDIED At tho the capitol later after the presidents president's statement Couzens aai ala eald l ho tio wanted to study the tue plan In detail de elc- he- he tail tall before expressing any attitude on it The Tho senator challenged tho contention con con- of or President Hoover that tho the consolidation eventually c would open the way for lower rates He said such an argument was waa contrary contrary contrary con con- to tho the testimony of ot the railroad railroad rail rall- road rond presidents before the senate interstate commerce committee |