The New York herald., 1922-12-16
VAN SWERINGEN co.
GETS BACKING HERE.
Cleveland Concern, Reported
to Be in Deal for C. & o.,
Has Call on N. Y. Funds.

The van Sweringen COMPANY OF
Cleveland. which was reported yester-
day TO have obtained an option on the
Chesapeake, and Ohio holdings of Henry
q. Huntington, chairman of -the board
Of that road, has secured the financial
backing of the Guaranty Trust Company
OF New York. Heretofore the Van
Sweringen Company has obtained
financial accommodations from Cleve-
land institutions including the Union
Trust Company of Cleveland.
No official light was thrown on the
reported option of the Van Sweringen
interests on a block of chesapeake and
Ohio stock because Of the absence from
the city of Mr.. Huntington and the re-
fusal by c. z. Graham, vice-president
of the Chesapeake and Ohio, and A. c.
Rearick, counsel for the road, to make
any comment on the report. Bankerscom-
mented favorably on the Van Sweringen
Company's recent activities in the rail-
road world. According to Wall Street
reports the Van Sweringens have con-
siderable backing in the railroad world.
including holdings. OF stock in a num-
Der OF important carriers.
What Wall Street was puzzling over
yesterday was whether the option on
Mr.. Huntington's holdings Of Chesa-
peake and Ohio carried control of the
road. 1t was developed from one source
that Mr.. Huntington owned Is per
cent. of the stock of the road, and
was able on short notice to obtain an
other IS per cent. All guesses as 10
price which Mr.. Huntington would
ask ranged well above the market price.
The stock closed at 70as, up 1N points
for the day.
Other gossip about the activities of
the Van Sweringens surrounds both the
Delaware, Lackawanna and Western
and the Lehigh Valley railroads as
probable aims of the Cleveland real
estate interests. but in both of those
offices the report was characterized as
"groundless.'
Thus far the Guaranty Trust Com
pany has not been approached by the
Van Swear;ngens to finance the option
on the Chesapeake and Ohio stock ac-
cording to w. G. Potter,president of the
Guaranty. A report was current iyester-
day that J. p. Morgan & Co. had agreed
to back the Van Sweringens. This was
denied by a member OF that firm, who
said that, while they. acted as advisors
at the time of the purchase by the Van
Sweringens Of the New York, Chicago
and st. Louis Railroad from the New
York Central, relations were ended on
the successful conclusion of these nego-
tiations
The New York Central was said In
some quarters to be favorably disposed
to the reported option on Chesapeake and
Ohio, in view of the fact that the former
road was still stockholder in Nickel
Plate. This point was cleared up at tho
offices Of the New York Central in
statement which pointed out that At the
time of purchase the Van Sweringens
offered part cash and part notes for
Nickel Plate. Some of these notes and
a part of Nickel Plate stock as collateral
are still in the hands of the New York
Central, but it was denied emphatically
that the latter system had any knowl-
edge Of the reported action by the Van
Sweringens prior to the published stories
to that effect. = :
Should the Chesapeake x Ohio pass
into the hands OF the Van Sweringens
realignment of banking affiliations will
be found necessary, in the opinion OF
Wall Street bankers. Kuhn, Loeb <
Co. and the National City Company
heretofore have been identified with the
financing of Chesapeake and Ohio. Among
other unconfirmed reports circulated In
the financial district yesterday was one,
originating In Philadelphia, which said
that the first payment on the option
held by the Van Sweringens already had
been made.