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The Butler County Press
Hamilton, Butler County, Ohio
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Washington Senate Interstate Commerce Committee's chief counsel issues adverse report on President Hoover's railroad merger plan, arguing consolidations won't solve weak railroad issues. Senator Couzens' resolution to halt mergers pending holding company regulation is delayed in the House.
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Washington.--The chief counsel of the senate interstate commerce committee made an adverse report on the railroad merger plan sponsored by President Hoover.
The counsel contends that "there exists no reasonable evidence that the weak road problem will be solved by a policy of consolidation" and that "there is no definite evidence that consolidations will result in substantial economies."
The committee's counsel says a complete grouping of railroads will not be carried out under a voluntary system because the strong, dividend-paying roads refuse to take over weak roads unless the transactions are commercially justifiable. A compulsory system, he holds, "cannot be put into effect because one carrier cannot be compelled to acquire another.
"In view of the position of the stronger roads as to the acquisition of unprofitable weak roads, and in the light of the history of the last ten years, there exists no reasonable ground for belief that the weak road problem will be solved by a policy of consolidation."
The counsel's report is along the general lines held by Senator Couzens, chairman of the senate committee, who is the author of a resolution to halt railroad consolidations pending regulation of holding companies. The resolution has been held up in the house.
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Domestic News Details
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Washington
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Outcome
adverse report concludes no evidence consolidations will solve weak railroad problem or yield economies; voluntary system unfeasible due to strong roads' refusal, compulsory impossible; senator couzens' resolution to halt consolidations held up in house.
Event Details
Chief counsel of Senate Interstate Commerce Committee reports against President Hoover's railroad merger plan, arguing lack of evidence for solving weak roads via consolidation and no substantial economies; strong roads won't acquire weak ones voluntarily unless justifiable, and compulsion not possible; aligns with Senator Couzens' views and his resolution to pause consolidations until holding companies regulated.