The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1923-07-26
Unmarried, They
Live In Seclusion
inCleveland, Shun
Publicity, and
Are Seldom Seen
in Wall Street

bankers LOT the New YORK central
Railroad, from which the purchase
was made, acted in an advisory ca
pacity. Practically all of the financial
backing of the brothers up to the
present time has come from Cleve-
land and Buffalo sources. 1t is I'M
derstood on high authority that the
exercise of the option on 80 per cent
of the stock of the Chesapeake and
Ohio was also made possible through
accommodation obtained from Cleve-
land banking institutions.
The fact that New York money has
not as yet been placed at their dis
posal is regarded more in the nature
of a policy of trial on the part of local
bankers. Every move of the brothers
is being watched with the keenest sort
of interest here and when the time
comes for them to make their bow 20
Wall Street the backing will be there
Story of Acquisition
Of the Chesapeake and Ohio
The acquisition of the Chesapeake
and Ohio is regarded as a shrewd
move. 1t is explained that H E. Hunt
ington, chairman of the board of that
road, succeeded the late Frank Trum-
bull chiefly to meet the emergency
caused by the latter's sudden death.
Mr.! Huntingtons age and the fact that
practically all of his former associates
have passed away are understood, to
have resulted in reports that the
chairman would be willing to turn the
reins of control to outsiders. Ac-
quainted with this information, the
Van Sworingens are understood 20
have Investigated the situation with
satisfactory results and then to have
set about acquiring an option on the
Huntington holdings. Having sue
ceeded thus far the problem was to
raise the necessary capital with which
to swing the deal. That this was not
so easy is shown by the fact that the
time for the expiration of the option
was extended from January 1 to Is.
Support was forthcoming from
three Cleveland banking institutions
and the $15,0O0,000 was exchanged
for contracts calling for the delivery
of the Chesapeake and Ohio stock.
The deal having been consummated
and the Interstate Commerce Commits
sion having sanctioned the, entrance
of the brothers on the board of di-
rectors of Chesapeake and Ohio and
it's subsidiaries, Wall Street began to
weigh the merits of the acquisition.
Chesapeake and Ohio occupies an
important position among the roads in
this section of the country, position
we'll earned during the stress of the
nf fT,oi 10Th will
prove a good investment for the Van
Sweringens is generally conceded in
view of the heavy movement of coal
along the right Of way from the South
ern coal centers to the Great Lakes
region where the road is an important
factor in the market.
A Encouragement of traffic whereby
the heavy movement of grain over the
Nickel Plate will be diverted to Chesa-
peake and Ohio for shipment to the
Atlantic seaboard at Norfolk and New
port News, thus avoiding the con-
gested area around Buffalo. That this
will not adversely affect Nickel Plate
earnings is claimed by authorities who
point out that the latter originates a
considerable variety of finished pro-
ducts along it's right of way.
The first news that an option had
been obtained by the Van Sweringens
on Chesapeake and Ohio stock was the
signal for the circulation of more
rumors to the effect that the brothers
would extend their activities to in
clude other Eastern roads, such as
Lehigh Valley and Delaware, ,Lacka-
wanna and Western. Both of these
rumors were set at rest at the time
through official denials. A more re-
cent report had it that Erie might be
acquired. In connection with the
further acquisition of Eastern carriers
it is held by experts that new align
ments would force retaliatory meas
ures by other systems serving about
the same territory. This phase of the
situation continues a mystery.
But anyway, the Van Sweringens
control that $500 miles of railroad-a
$200,00O,000 enterprise.