B. & O. Merger

The Baltimore & Ohio R. R. last week announced that it would soon apply to the Interstate Commerce Commission for permission to absorb the Reading R. R. and the Reading's subsidiary, Central R. R. of New Jersey. Such a merger would unite three roads with combined assets of about $1,712,826,542 and total trackage of 10,601 miles. The Jersey Central runs from Jersey City west to Scranton, Pa., and south to resort towns on the New Jersey coast. The Reading goes from Boundbrook, N. J., to Philadelphia, Reading, Harrisburg and Bethlehem, Pa., also Lancaster, Pa. and Wilmington, Del. The B. & O. is already heavily loaded with Reading securities.

More important than the merger itself was its possible effect upon the status quo existing in the eastern railroad field. There are four main systems: Pennsylvania, New York Central, Baltimore & Ohio and Nickel Plate (Van Sweringen). Four years ago these four railroads held conferences in which the eastern railroad field was tentatively divided among them, but the negotiations were abandoned chiefly because the Pennsylvania did not believe that it had received its proper share of the short lines. Since the failure of these negotiations, no decisive merger movement has taken place. Last fortnight, however, the New York Central secured the approval of the Interstate Commerce Commission in acquiring the Big Four and Michigan Central roads, stock control of which it has for some time owned (TIME, Feb. 4). It is believed that the Van Sweringen Brothers will also proceed with their individual merger plan. The failure of the four railroads to agree will thus eventually land them all before the Interstate Commerce Commission, which is the last place any railroad likes to go.