N. Y. C. Merger

N.Y.C. Merger

Termed dilatory by President Coolidge (see p. 9), the Interstate Commerce Commission last week roused itself, took action, decided that the New York Central R. R. might legally acquire the Cleveland. Cincinnati, Chicago & St. Louis and the Michigan Central railroads, and subsidiary lines of the two. Merger permission was conditional upon purchase by the New York Central of six short-line roads in the affected area.

The decision was welcomed by the New York Central. It marked the Commis sion's first favorable decision on a question concerning vital railroad consolidation. Both the Cleveland, Cincinnati, Chicago & St. Louis (the "Big Four") and the Michigan Central have long been New York Central subsidiaries, New York Central owning more than 90% of their stocks. They have been operated as separate units, however, and the New York Central based its consolidation plea on the argument that "the necessity for protecting the earnings of each carrier" prevented complete unification and coordination of the system. A. H. Harris, chairman of the executive committee of the New York Central said that negotiations for the purchase of the six short lines would be immediately begun.