Show S RAil M W Another Step Taken in Reaching Far-Reaching Program t of Consolidation W WASHINGTON N July 34 24 1 AP AP AP- 1 Another step in the reaching far plants plans of oe L. L F. F Loree to lI link k the prin- prin CIP transportation gateways of the country countr was as taken today with the filing of two applications with the t commerce commission to 1 unite Into a single system three e major ajor jor C carriers of ot the Southwest f 4 t Approval of ot the two plans one n for tor acquisition of stock stack control control of the Kansas Kansas Kansas- i Texas exas Katy by the Kansas City X Southern and the other for tor assumption lion tion of similar control by the Katy aty 1 I of f the St. St Louis Southwestern stern Cotton Cotton Cot Cot- ton Belt lt would mould Into one big I operating nearly miles ot of track and approximately of ot working capital The r WAS reQuested to re- re gard Bard both applications as covering one general project and that they be considered together I SINGLE SYSTEM The distinction between n consolidation consolidation consoli consoli- dation under common ownership Jand and management prohibited by law spending pending completion b by the commis- commis i slon slop of ot final consolidation plans and mer merging ln th through rough stock control to operate as ns a single system wasi was wasi em emphasized In the Kay ny application which explained It was for nc acqui acquisition ul not Involving consolidation Into nt a I single system for tor own ownership and operation of ot the Cotton Bolt Belt Unlike the r rejected j Nickel Plate unification plan which called for tor forthe the creation of bf t a new con p company ny to assume Control over five railroad units and the Issuance In some Rome instances In In- atances stances of nonvoting stock the applications ap ap- filed tiled today would have hove one railroad acquire a second a athe and nd the fth-e second take a third and all aU three while ret retaining their cor cor- Identities grouped d Into a single sin gle oper operating system o One of the principal reason reasons for uniting th the three roads was wa said to tobe tobe be the n necessity for Ii a grouping of ot the Southwestern South carriers Into a n. limited number of systems system eb b arranged ar arranged ar- ar ranged as to provide for tor the gr greatest greatest great great- at est economies In operation and the most efficient s service to the public BUY OR EXCHANGE The application of the Kansas City Southern which now owns shares s of ot Katy Jaty common 1 stock for which which- It paid more than declared red that acquisition would be by purchase or exchange e of of sufficient additional shares Mar as to give It a working majority while that of the Katy requested author author- lly By to Require acquire the Cotton Belt It by purchase of or at least a numerical majority of of outstanding capital al stock tock It C Such Such control b by the Katy would JJ ibe obtained by purchase from the Kansas City Southern rn for with interest at 5 per IM cent of S shares of at preferred d and 20 shares of ot common stock of the Ue Cotton Cohon Belt pursuant to an agreement agreement agreement agree agree- ment entered entered- d. d into yesterday at New NewYork NewYork ew York between n the Jat Katy and Kansas Kansas Kan Kan- sas sag City Southern and the Central Union Trust com company pan The Katy aty alto also would purchase at ai not more than 92 02 a share for preferred and 74 for tor common such suh additional shares share of the Cotton Belt as would constitute a majority Under the agreement nt the Katy In addition would acquire all rights of the Kansas City Southern Southern to a are r reduction re- re of at the purchase price of Cotton C Belt nelt shares share bought from the Rock Island Should It fall to acquire acquire ac IlC ac- ac quire the needed additional shares at the terms m mentioned the Kat Katy reI reserved the right to file another a. a application with tb the commission |