Evening Star Newspaper, July 22, 1932, Page 3

THE EVENI NG STAR, WASHINGTON, D, C., FRIDAY, J ULY 22, 1932. RAIL CHIEFS BACK } L. PRIPOSLS Long Negotiations Foreseen in Effecting Consolidation Into Four Systems. (Continued From First Page) to come to the commission with their line-up ready for approval. It may be several years before this is done because of the business situation and the low quotations of railroads stocks and bonds. Some financial experts believe many security holders will refuse to sell their stocks and bonds at present prices. There are other steps which ‘will also require long and detailed work. | The new consolidation plan was put before the carriers late yestercay, the commission seeking, by yielding on some points and making new sugges- tions, to end years of wrangling over how consolidations should be effected to preserve competition, serve the public @nd save money. Provisions of New Plan. By the new plan carriers would b2 grouped under the Baltimore & Ohio, Chesapeake & Ohio, Pennsylvania and New York Central. The Delaware & Hudson and the Seaboard Air Line would constitute independent systems, while the Pennsylvania would be for- bidden entry into New England. When the roads in October presented their four-party suggastion. they said if it were not approved without change the plan would fail. What effect busi- ness conditions have had since remains | 10 be seen. i The new schedule would break up the proposed Wabash-Seaboard ystem abrogate two anti-trust decisions by authorizing the Pennsylvania to absorb the Wabash and the Baltimore & Ohio to take in the Western Maryland. Decision Not Unanimous. Likewise, it would leave with the Louisville & Nashville and the South- ern ownership of the Chicago, In- dianapolis & Louisville (the Monon) instead of allocating one-half interest in it to the Baltimore & Ohio. The commission cecision was not unanimous. Commissioners Eastman and McManamy dissented from the en- tire plan, while Brainerd, Lee and Ma- haffie would not accent minor features. Eastman and McManamy held the four-system proposal has “slaughtered the plan for the entire country which we set up in 1929 and must be made over again They objected that the Seaboard Alr Line and the Mobile & Ohio. in receiverships, would be left unattached: that the commission had not taken cognizance of Van Sweringen control of the Missouri Pacific. Lee said the Boston & Maine should be allowed to retain the Delaware & Hudson: that the Baltimore & Ohio should mot have in full the Western Maryland and the Detroit & Toledo Shore Line. Mahaffie held the Detroit & Toledo Shore Line should remain with the Nickel Plate. Entry to Philadelphia. Brainerd felt admission into Phila- delphia should be allowed the Lehigh Valley: the Western Maryland and the | Norfolk & Western should be combined and that New England bridge lines ot be disturbe m’?“;\lg Thajority of the commission, though, held the consolidation would | “serve the public efficiently and eco- nomically,” “preserve healthful compe- tition” and “maintain. as far as prac- ticable. the existing Toutes and chan- 1s of trade and commerce. “eWhat railroad men found one of the biggest points in the plan, affecting | lines as far west as Kansas City and | as far south as Wadesboro, N. C., and | Bristol, Tenn., was that involving the Pennsylvania’s New England holdinas. | The commission ruled that although | the Pennsylvania might be willing to | accept the plan, it could not until \; had sold or placed in the hands of trustees all its holdings and those of its subsidiaries in New England roads. Holdings in Other Lines. The Pennsylvania and its subsidiary the Pennroad Corporation, now have 2279 per cent of the New York New Haven & Hartford stock. The Penn- Yoad has a 19.25 per cent interest in the Boston & Maine, of which the Bos- | ton Railroad Holding Co., owned by the New Haven. has another 26.18 per cent. | As one reason for blocking Pennsy vania progress into New England, the commission said that of the 57,000 miles included in the concolidation 315 per cent would go to the Pennsylvania, 24.5 to the Chesapeake & Ohio-Nickel Plate, 237 to the New York Central and 20.3 to the Baltimore & Ohio. The com- mission added “The Pennsylvania system will not only predominate in size, but most likely in financial strength. for the properties allocated to it earned in 1929 and 1930 a greater annual return on the invest- | ment therein by about 0.5 per cent than was earned on the properties al- located to any of its competing systems.” The decision to let the Delaware & Hudson remain independent and to Jeave ownership of some New England bridge lines with Eew England com- panies was considered at least a par- 1ial victory for five Governors from that section who sought these concessions. Branch Lopped Off. The decision lopped off one branch of the Delaware, Lackawanna & West- ern and gives it to the Chesapeake & ©Ohio so that road can reach Syracuse and Oswego, N. Y., via Chenango Forks, N. Y. The New York Central is given | SPECIAL NOTICES. debts contracted by any one other than m: Sell. W. D. LUCAS. Baliston, Va. THE ANNUAL MEETING OF THE STOCK- Yolders of the Potomac Insurance Company of the District of Columbia will be heid at the office of the company, 900-906 F st. n.w., ‘Washington, D. . on Monday. August 1. 1932, at 11 am. Books for the transfer of stock will be cloted from July 20 to August 1, inclusive. _ TALEXANDER K. PHILLIPS. Secretary. _ FURNITURE. ETC.. TOMORROW'S SALE AT Weschler's Auction, 915 E st. n:w., includes desirable suites and odd pieces. lamps. rugs, elec. refrigerator. pianos. radio, rnfih Tegis- Tei. etc.. by order Storage Co.. et & i A pretty young woman zurprised a polige- man! Sun., 8:15 pm. E. Hez Swem. Pastor Centennial Bapt. Ch.. Tth & Eye n.e. Bl fans. GOING? WHERE? TELL US WHEN AND we'll move your furniture and take mighty Eood care of it al low cost. A telephone call will save you time and trouble. ATL. DELIVERY ASSOCIATION. phone,Nat. 1460. 1 WILL NOT BE RESPONSIBLE FOR ANY debts other than those contracted by my- self. THOMAS FORAN. 212 Que st. n.w. 22° | oc DELIVERED. | t sugar. Phope before 10 am._ 4 100 LETTERS. $125: 200. $17. Circulars, notices, etc., addressing. mailing. Ace Letter Service, District Nat. Bank Bids. VACATIONISTS ){,F DTV!DWON TRAN: FER & STORAGE CO.. long-dlstance mos ing specialists. daily motor express service handling frunks. baggage, baby car- fxtu&s. ete. .C;)olifi‘l}lo{;ltlsfaflfiinm‘” points. Piano Tuning & Repairing 26 years with DéMoall Ptano Co. and ‘,56 zon & Hamlin, Boston. Victor N S0z WAN LOADS TONCW YORK ... ......... TO PHILADELPHIA ..... TO NORFOLK ... 0. 5 And all points North and West ALLIED VAN LINES. FT VANS snywhere ITH'S TRANSFER & STORAGE 1313 You St_N.W-__Phone North 3342 A Million Dolfar Plant —devoted to high-class, distinctive print- ing that gets results. Consult us now. The National Capital Press __FLA. AVE. 3rd and N. N.E. LIN. 6060. THE FOLLOWING CARS ARE TO BE SOLD 2t Weschler's Public Auction on Saturday. July 23, 1932 for charges: ige Sedan, D. C. 1941, left by Mr. L. 8. Pumphre: { | by, SM| {the so-called bridge Four-Railroad System Proposed for the East by L. C. C. KEY CHICAGO 70 KANSAS CITV * A3 (CARRIERS INVOLVED N CONSDLDATON Many Roads Already Owned by System to Which They Are Assigned. BALTIMORE & OHIO R R. omtmomoeom NEW YORK CENTRAL R R: = === PENNSYLVANIA R.R —1mimimr- VAN SWERINGEN SYSTEM WiouisviLLE "l o The above map shows how the Interstate Ccmmerce Commission, in its rallroad consolidation plan for the part of the ccuntry east of Chicago, proposes to allocate lines to the New York Central, the Pennsylvania, the Baltimore & Ohio and the Chesapeake & Ohio. Above: The heads of the four big systems. Left to right—Frederic L. Willlamson, New York Central; Daniel Willard, Baltimore & Ohio; W. W. Atterbury, Pennsylvania, and John J. Bernet, Chesapeake & Ohio. —A. P. Photos, N. Y. Times Map. all the rest of the line, but the Chesa- peake & Ohio is granted trackage rights from Binghamton to Chenango Forks The fight of the five New England Governors and_powerful business in- terests in the Northeast brought part of the results desired. This involved | leaving some of the New England Gate- way Bridge lines with New England companies and declares the Delaware & Hudson an independent system. The Lehigh & New England was divided equally between the four sys- tems. The New York, Ontario & West- ern was left with the New Haven sys- tem, and the Lehigh & Hudson River allocated to the Baltimore & Ohio. The biggest point in the New Eng- land situation, however, was the de- mand that the Pennsylvania be required to stay out. The commission said the New England situation as it relates to the two systems created in that section under the original consolidation plan and possible trunk-line penetration should be left for consideration at a later date. It said that probably Pennsylvania absorption of the New Haven would please New England interests, but ex- pressed doubt that this road should be allowed to become too much larger than its competitors. Absorption of the New Haven, the opinion held, would make the Pennsylvania 74 per cent larger than the Baltimore & Ohio. As a result, the commission, fearing long delay might make it legally help- less, orcered the Pennsylvania and its subsidiaries to sell or place in the hands of trustees all of the stocks they own in the New Haven and Boston & Maine. Loree Scores Victory. The Delaware & Hudson decision, though taking away from the Boston & Maine system a bridge line New Eng- land officials thought to hold, is a vic- tory both for New England officials and L. F. Loree, last of the oldtime railroad operators. Loree controls the Delaware & Hndson and the Kansas City South- ern. Through his representatives he in- formed the commission that his rail- road was not for sale. He seriously questioned the financial ability of the four big companies to swing the deal they had on. He insisted that his road should be let alone. ‘The Sezboard Air Line Railway, which the commission attempted in its 1929 plan to include in a separate sys- | tem with the Wabash and the Norfolk & Western Railway, is left as an inde- pendent system. The Virginian Railway, a rich coal- carrying line, which the Chesapeake & | Ohic and the Pennsylvania sought to divide, was 2llocated by the commission to the New York Central system. Commissioner Eastman’s dissenting opinion, in which Commissioner Mc- Manamy concurred, asserted that the fcur-system plan has “slaughtered the plan for the entire country which we set up in 1929 and that it must be made over again.” Objections Are Stated. He said the Seaboard Alr Line and the Mobile & Ohio, in receivership, had been Ieft to shift for themselves; the Chicago & Northwestern left in “solitude in Western territory,” and the New England systems deprived of most of lines. He also pointed to the removal of the St. Louis- Southwestern from the Illinols Central system and its transfer to the Southern Pacific. Referring to the majority opinion that the Pennsylvania must turn over to a trustee or sell its New Haven and Boston & Maine stocks before it can proceed with the consolidation, Eastman sald the majority action was weak, add- BUY AND SAVE Prices of Marlow’s Famous Reading Anthra- cite, that better hard coal, go up August 1. BUY today and Save the difference. PHONE NOW. Dependable Coal Service Since 1858 Marlow mphrey. Marauette Sedan. Kan. 25-4431, left by MESEd A Goupé, D. C. W17 (1931). lett by Mr. Lenox. CALL CARL, INC. 614 H st. W, 811 E St. N.W. ing that “there is no urgent reason why the Pennsylvania should seek such au- thority.” He also expressed disappointment that the majcrity had not taken cognizance of Van Sweringen control of the Mis- souri Pacific in the West. | PELLEY SEES ADVANTAGES. | Head of New Haven System Expects General Gains. NEW HAVEN, Conn., July 22 () — John J. Pelley, president of the New York, New Haven & Hartford Railroad, said today after this study of the In- terstate Commerce Commission deci- sion on the four-party plan | “The Interstate Commerce Commis- | sion’s recent decision in the four-party plan for the consolidation of railroads |'in the East should have a beneficial effect upon the general railroad situa- tion_and holds out substantial benefits for the future.” C. & 0. MINORITY BALKS. Will Oppose Rail Plan Relating to This | System. { | RICHMOND, Va., July 22 ®.— Charles S. Valentine, representing minority stockholders who have oppcsed | the fiscal policy of the majority at recent Chesapeake & Ohio stockhold- | i ers' meetings, said today his group | would oppose the Eastern rail consoli- dation in so far as it provides for union of the C. & O. with weaker Northern and Eastern lines. ! Valentine said the fight would be | | made when the Chesapeake & Ohio ap- | | plies to the Interstate Commerce Com- | mission for pernission to form its system. A minority block of C. & O. stock- holders succeeded in defeating the first big merger proposal several years | | | | | Perfect natural eye- sight is rare, but by | the aid of corrective lenses nearly every- one can enjoy the | benefits and comfort of normal vision. Our registered optom- etrist incures not only scientific accu- racy in the lens, but an appropriate style of mounting that you will wear with the satisfaction of good taste and dis- tinction. Consulta- tions and examina- tions without any obligation whatso- ever. A.Kahn Jne. 40 years at 935 F Street Registered Optome- trist in Attendance iESET il Coal Co. NAtional 0311 DEFAULTING IS DENIED Container Corporation Answers Re- ceivership Suit in Delaware. WILMINGTON, Del., July 22 (@) — The Container Corporation of America, with offices in Chicago, filed an an- swer yesterday in Chancery Court here to the receivership suit brought against it recently by Harrington J. Thomson of Orange. N. J. The answer denies as “unqualifiedly false” the allegation that on June 1 the corporation defaulted interest pay- ments due on its 15-year 6 per cent gold debentures. “If the complainant owns one of the bonds, as he says,” the answer stated, “he knew the allegation was false. or else he had refrained from depositing the coupon for payment.” ‘The corporation stated that on May | 27 it forwarded to its paying agent In New York funds for full payment of | the interest amount due June 1. It declares it endeavored to locate Thom- son, but was unable to find him in Orange. N By the Associated Press. | The line-up of railroads approved by | the Interstate Ccmmerce Commission | yesterday would, if consummated, bring | together large groups of large railroads, most of which a'ready are owned by the | system to which they are assigned. i~ The principal carriers involved in the | plans and the systems to which the new scheme allocates them include: New York Central System: New York Central; Boston & Albany; Cincinnati Northern; Cleveland, Cin- cinnati, Chicago & St. Louis; Dela- ware, Lackawanna & Western Railroad Co., except the branch from Chenango Forks to Oswego, N. Y.; Boyne City, ! Gaylord & Alpena: Evansville, India- napolis & Terra Haute; Kanawha & Michigan; Kanawha & West Virginia; Lackawanna & Wyoming Valley; Lake Erie & Eastern; one-fourth interest in the Lehigh & New England; Michigan Central; Monongahela Railway (one- fourth 'interest): one-fourth _interest Montour Railroad; Peoria and Eastern; Pittsburgh & Lake Erie; one-fourth in- terest in the Pittsburgh & West Vir- ginia, east of Gould's Tunnel; one- fourth interest in Pittsburgh Chartiers & Youghiogheny; Scuthern New York; Ulster & Delaware; Virginia Railway; West Shore Railroad Pennsylvania system: Pennsylvania Railroad: Baltimore, Chesapeake & Atlantic Railway; Bal- | timore & Eastern; Big Sandy & Cum- ! berland; one-half interest in Cambria |& Indiana; one-half interest in the Central Indiana; Detroit, Toledo & Ironton; Donora Southern; one-half interest’ in Interstate Railroad: Lake Erie & Fort Wayne: Ligonier Valley; Long Island Railroad; one-fourth in- terest in Lehigh & New England; one- fourth interest in Montour Railroad; New Jersey, Indiana & Illinois; Nor- folk & Western: one-fourth interest in Pittsburgh Chartiers & Youghiogheny; Pittsburgh & Susquehanna; one-fourth interest in the Pittsburgh & West Vir- ginia east of Gould's Tunnel; St. Louls & Hannibal: Toledo, Peoria & West- half interest in Winston-Salem South- hound. Baltimore & Ohio system: Baltimore & Ohio Railroad: Ann Arbor; Atlantic Cit; Buffalo, Roches- ter & Pittsburgh: Buffalo & Susque- hanna; Central Railroad Co. of New Jersey; Chicago & Alton; Detroit & Toledo Shore Line; Lehigh & Hudson River; one-fourth interest in the Le- high & New England: one-fourth in- terest in Montour; one-fourth interest in the Pitisburgh Chartiers & Youghi- ogheny; one-fourth interest in Pitts- | burgh & West Virginia east of Gould's Tunnel: Reading; Staten Island Rapid Transit; Western Maryland: West Vir- | ginia Midland; West Virginia North- | ern. | {iem. Chesapeake Lake Erie, & Ohio, Bessemer & As the result of cigar makers’ strike, | many cigar manufacturers are leaving Havena. Cuba, and one large dealer says that the city soon will be withou: such factories. RUSH PRINTING EXPERT SERVICE HIGH GRADE —NOT HIGH PRICED 1319-1321 F Street July 22 BOSTONIAN SHOES 8AM.to6P.M. extra trousers to match suit and the four pieces ever offered. ANY build. tailors . Open Saturdays till 6 P.M. St. Albans Fine Wool Suits Coat, Vest, Trousers Of Summer and Fall Weights Extra Trousers for $2.50 Buy only the three pieces if you wish, but the will double the life of the were formerly priced at $45. What bargains now! This is not stock that has been made up to meet prevailing low prices of today. Every suit is of our original 1932 lines . . . the best qualities we’ve Fine flannels and smooth-face worsteds, and the genuine tropical worsteds. Handsome shades of gray, tan, brown and blue, for Summer or Fall wear; coats of conventional cut or the new Dev- onshire drape; linings resembling the finest silks, but much more durable. Extra sizes for men of Every garment is fitted by a master fitter and alterations are made by experienced . without extra charge. ern: Wabash; Western Allegheny: one- | Chesapeake & Ohio-Nickel Plate Sys- | Big Sandy & Kentucky Length of Shark That Crippled Ship Matter for Debate By the Associated Press. SAN DIEGO, Calif., July 22.— A giant shark disabled the tuna | | clipper California, which arrived | | here yesterday at the end of a tow rope. Capt, Rolf Silvera said the sherk becane entangled in nets cast, for sardines, ripped the nets to shreds and broke off the Cali- fornia’s rudder. One fisherman said the shark was 50 feet long, but others scaled it down to 30 feet. It got away. River, Chesapeake & Ohio of Indiana | Chicago & Eastern Ilinos, Chica; | Erle, branch of Delaware Lackawanr | & Western, from Chenango Forks io swego, N. Y.; Detroit & Mackina~, East Kentucky Southern, Erie Railroad, | Hocking Valley, Kanawha Central, Le- | high Valley, * cne-fourth interest in Montour, New York, Chicego & St. Louis; New York, Susquehanna & West- | ern; Pere Marquette, one-fourth inter- | est in Pittsburgh Chertiers & Youghio- | | gheny, one-fourth interest in Pitts- | burgh & West Virginia, east of Gould's | Tunnel; Pittsburgh & West Virginia, | west of Gould’s Tunnel: Pittsburgh, Shawmut & Northern, Pittsburgh & | | Shawmut, Port Huron & Detroit, Vir- | ginia Central, Wheeling & Lake Erie, | Wilkes-Barre & Eastern. HENRY JOHNSON SAILS NEW YORK, July 22 (®) —Henry (Red) Johnson, former sailor suitor of | Betty Gow, the kidnaped Lindbergh | baby's nursemaid, is on his way to Nor- way. Before he salled yesterday an | unidentified girl kissed him good-by. Since he was cleared of any know edge of the kidnaping, he has been held | at Ellis Island for alleged illegal entry | | into the country. The circumstances | of his leaving, or whether he will be | allowed to return, were not made clear. JOINT PICNIC PLANNED Office employes and agents of the Washington branch of the New York Life Insurance Co, will hold a joint pienic at Seaside Park, Chesapeake Beach, Md. tcmorrow. A base ball <hoe pit-hing and swimming have been arranged by the entertainment _committee headed by Datid Samakorw. The Prince Georges County Volunteer Rezrue Squad also will hold a picnic at Scaside Park tomorrow. Volunteer firomen. members of the ladies’ auxil- and_oiher groups will attend the Clarence Gasch of Biandens- general chairman of the out- affai hurr. i ing. Morgan Sails for Europe. NEW YORK. July 22 (#.—J. Pier- poni Morgan sailed for Europe last night aboard liner Olympic for an indefirite holiday. The finanecier ad- hered to his policy of declining to com- ment on public affairs. REAL TATE SERVICE INSURANCE Prompt Service SHANNON & LUCHS 1435 K St. N.W. Wheel hairs FOR RENT OR SALE UNITED % STATES STORAGE CO. 418 10th Street Metropolitan 1843 NA. 2345 Send Your du Pont TONTINE Window Shades to Us to Be WASHED! E e >7) shedes, regardless of their conditi /// be expertly and care scrubbed end ren new. 830 13th St. N.W. i ‘W. STOKES maintain a modern “shade laundry,” one Tontine shade Your Tontine window on, will 'y washed and d to you looking like Ask for an zstxmatev Nominal District 3324-3325 SAMMONS ‘Viaetian Blinds For Home or Office. |in£p£u WASHINGTON INDUSTRY Once more we remind our thousands of friends that— DENT Now, as always, Thompson's has never been connected with any other Dairy Institution in Washington or elsewhere. Thompeon’s has always heen owned and operated by a Washington family. From the founding of than 50 years ago. the never been changed. this Institution. more name Thompson has You’re patronizing a real Washington Industry that gives employment to many Washington workers . . . when your home is served by Thompson’s. HOMPSON S DA E Cc Uu R A T i1 4 0 O