Evening star., 1925-09-30
MERGER PROJECT
FOES TO Be HEARD
Opponents OF Nickel Plate
Combine TO Appear Before
&c. c. Next Wednesday.

Opponents Of the Nickel Piate merge
proiect arranged rodsr before the In.
ierstate Commerce Commission 70 he
gin presAnistion ~ their evide nce
Wednesday Of next week
n. ". nderson. counsel for Chess
peake nd Ohio minority stockhoId
ers. who have attacked the Van Swei-
ineen project for linking The Chsss
peahe ana Ohio. Pere Marquette. Erje.
Nickel Plate and hooking VALLEY ratl-
roads asked permission 10 defer arsu.
ment on his motion To dismiss The pro
ceedinss now pending before the rom
mission on he merger. which COM
missionev Never. presiding. 2rs MED.
with The understa ndin9 that this m"
rion would be argued later
First Witness IN list.
Nv. Anderson said that he won'd
ca II first " H. Harahan. presiden' ~
the Chesapeake and Ohio Railroad. 20
testify as 10 The circumstances 'lnd"'
which rhe CheSa peake and Ohio NAV
asemenr accepted the merger p'an
Thereafter he said. he would rall al
members Of the board Of directors ~
The Chesa peake and osnio Railroad, and
F. n. Underwood. president Of he
Erie Railroad and Frank n. Alfred
president OF the Pers Marquette
". A. celston. counsel fo' ne
. Nickel Plate interests aGreeo 10 aS-
sist in procuring rhe attendance -
all the railroad officials whom M.
Anderson desired.
After the umdersta ndins had hsHn
reached pa rticipants 10 the merge
hea ring proceeded with the "ros7-
examination of H G. Roval. rpon &C
counting d2ts.
| Van Sweringen Plan Summarized.
/ In answering questions of 2. 9.
Bailey Mr Royai read into rhs rec
ord s,lnmariZatton ~ rhs resm''= :
! Of the Van Sveringen nlan in melz
| ing he assets ~ the Ave railroad
! On The ha sis Of present outsts ndinE
| Issues ~ ca pirsl stock. Mr.. RoNa
said, the Nickel Plate would be con
! tributing 1882 per cent of the aseers
OF the new merger company while
present Nickel Plate stockholders viii
! receive II 10 per cent Of stock IN n 6
| new compe ~. The Chesa apeaks and
/ Ohio Railroad would contribute - .9S
per cent OF The assets of The merge
| company and its Stockholders wnuld
! receive 40.s per cent of the stock in
! The new company. Sin1ila rlN The Eric
| Railros contribution would he ~ 2E
J per tNHl VI 6SSFlS. Snn l'S slOfk -
! ceipts would he 2239 ner cent: the
| Pere NaroUetIs WOULD conrrihui G
! 1882 per cent Of sseIs and ife sock
/ receipts would he 1914 per cent M
! the Hooking Co. would contrib,us -
| per cent or the asseis and ire stock
receipts would he 81
These figures would he varied con-
! siderablv. the witness indicated by
! rea ding mother table If Chesa pep .
| and Ohio convertible bond issues out
eta ndtns should be exchs ngeo for rom
mon stock Of the new merger com
panv.
Makes inquiry "a to Ratios.
Do Nou consider king those
! atios OF stock receipts to assets con
tributed. that that repcesents : fair
hs sis?" Nh. BAILEY asked.
. 4 haven't any opinion as 10 he
mater" Nj. RoYs finally answer ~
! when Mr.. Colston had objected.
i Mr. Rsilley asked Commissioner
! Meyer 10 direct rhe witness 10 make
! q more responsive answer. hut the
! commissioned ruled that he could not
be required o furnish an opinion thar
| he had not formed The examination
| continued with study of the details
! on which The witness had formed his
| estimates OF The total property vaIua
| zion of each Of the compa nies which
entered into his compilation.