Order To Control
B.R.&P. Is Given Baltimore & Ohio
Ruling Made
Yesterday by Interstate Commerce Commission
14 Million Involved
Alleghany Corporation to Turn Over 84 per Cent. Of Stock
The Bradford Era
Thursday, February 13, 1930 |
Washington, Feb. 12 – Permission to purchase
control of the 600-mile line of the Buffalo, Rochester, and Pittsburgh
Railway was given the Baltimore and Ohio system today by the Interstate
Commerce Commission.
The Alleghany Corporation, present majority owner of the Buffalo line,
will turn over to the Baltimore and Ohio 84 per cent. of the outstanding
stock of the Buffalo line for $14,263,216.00.
Conditions to Approval
As conditions to its approval, the commission
ordered the Baltimore and Ohio after the purchase to keep open all traffic
routes now established by the Buffalo, Rochester and Pittsburgh, to agree
to purchase at arbitrated prices control of anything connecting short
line which may be allocated to it, and to offer to minority holders in
the Buffalo company the same price for their shares which the Alleghany
Corporation will receive.
By the transaction, the commission said, the Baltimore and Ohio will be
able to establish a new direct route over its own rails from Baltimore
to Buffalo. In addition, by using the 80 miles of Buffalo, Rochester and
Pittsburgh line between Butler and DuBois, Pennsylvania, the Baltimore
and Ohio with its own rails will be able to establish a new short line
between Chicago and New York, passing north of Pittsburgh and reducing
danger of congestion in the Pittsburgh area.
Objections Set Aside
Objections to the Baltimore and Ohio purchase
of the Buffalo, Rochester and Pittsburgh made by the Delaware and Hudson,
the Wabash, and the Pittsburgh and the West Virginia railroads were set
aside in the decision.
The merger of the Buffalo, Rochester and Pittsburgh with the Baltimore
and Ohio system was projected by the commission in the recent national
plan for general railroad consolidation which it promulgated. Notwithstanding,
its control was south by the objecting railroads named.
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