Monday, May. 25, 1936

Feast or Fight?

Four pleas and plans laid before four Interstate Commerce Commissioners last week by truckmen and railroaders sounded as if the U. S. railroad and trucking industries were either getting ready for a great consolidation feast or a grim competitive fight.

P: In Manhattan, Keeshin Transcontinental Freight Lines, largest U. S. truck operator (TIME, Sept. 2), explained to an Interstate Commerce Commissioner why it wished to buy Seaboard Freight Lines, New England's largest operator, for $250,000. In opposition, all New England's major railroads declared that the plan would effect no vital economies, was not in the best public interest.

P: In Omaha, Burlington, Union Pacific and Chicago & North Western Railroads explained to an Interstate Commerce Commissioner why they wished to buy Union Transfer Co., whose trucks run to North Platte, Neb. and the Twin Cities, for $150,000, develop it with some $450,000 more. In opposition, Keeshin, which also covers the territory, asserted the plan was not in the best public interest and that it was an attempt to smother competition.

P: In Chicago, Keeshin set about filing joint tariff schedules with six railroads as the result of an alliance agreed upon fortnight ago for truck-rail freight service, such as Keeshin started with the Rock Island line in 1934. About June 8, the railroads will begin picking up loaded Keeshin trailers on flat cars, carrying them by rail to their destination, where Keeshin tractors will make final delivery. The six: Baltimore & Ohio; Reading; Central of New Jersey; Alton; Rock Island; Chicago Great Western.

P: In Chicago, the new All American Motor Freight Lines, recently capitalized at $1,000,000, asked the I. C. C. for permission to buy seven truck lines for $96,000, announced it will soon apply for permission to buy five more for $400,000. All American plans to confine itself to the Midwest for the time being.

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