Evening star., 1925-09-01
ARTICLE Ill.

| The formal objection of the Chesa
! peake and Ohio minority to the billion
! dollar consolidation OF the Van Swer
! inSens is based upon The terms al
which their holdings are to De eX
! changed FOR stock in the porposeC
! Nickel Plate system.
Every few days since the hearing
! began a report has been spread that
! the minority had agreed TO settle with
/ the Van SWerinSen interests on con
! siderably better terms and that con
! 1Squently the consolidation was about
! to go through without further protest
! These rumors are difficult TO credit
No Help From Banker.
! AS has been told, the Chesapeake
and Ohio minority. before IL began its
public campaign against consolida-
| ton, went to Thomas W. Lamont OF
| j. P. Morgan q Co. and declared it
| would refuse To accept the terms pre-
/ scIibcd in, the leases. 1t asked him
| What he wished TO do about IL.
! Nothing" Mr.. Lamont is reported
! . have said.
| The committee was then told ii
i must deal with the proposers of the
, consolidation, the Van Sweringens.
This. the minority insists, was its
| only offer of peace.
y month or more ago counsel for
| the minority was questioning Oris
Van Sweringen on details of his finan-
cial history. His attorneys objected
and adjournment was taken until the
Interstate Commerce Commission
after two weeks. made up it's mind
that he would have to answer. In
lhat interval, it is reported. an ennis
vary Of the Van SwerinSens attempted
to persuade the minority TO abandon
N hot ar
terms. Counsel for the Van Swerin-
gems, however. deny that this offer
or any other whatsoever" ever has
been made to the minority.
The difficulty in reaching any secret
agreement between the two sides is
this: Part Of the small Chesapeake
and Ohio stockholders accepted the
Van Sweringen terms when they
were first announced and deposited
consolidation committee The Scott
minority group, therefore, represents
only the small stockholders who did
not deposit their shares.
Fight for Principle.
Scott and his committee have de-
clared they We're lighting for all the
small shareholders. those who de-
posted their stock with the Van
objecting. George Cole Scott is per-
sonally a very wealthy man, and he
has insisted repeatedly he is fighting
for principle" rather than the
chance to make a. secret bargain with
the Van Swertngens.
He and his committee demand that
the terms provided in the leases for
all stockholders be changed. To make
80 material change In the leases will
eceSsitate the Van Sweringens goin g
back again TO the beginning and ob-
tanning the consent Of the Erie and
Pere Marquette stockholders to the
change. presumably a lengthy process.
Even if the objectinS Scott minority
is not sincere in its protestations. the
Van Sweringens are not likely to
make a secret, separate peace with it.
They can hardly wish to place them
selves in the position of Offering a
generous arrangement to the Scott
minority and then asking the Inter
state Commerce Commission to ap-
prove the original less favorable terms
to the remaining small shareholders
who obediently deposited their stock.
The Van Sweringens have said they
would be glad II the Interstate Com
merce Commission would suggest
terms which il feels are fair. Official
". at least. the members Of the Inter