Seward daily gateway., 1925-05-28
WALL STREET INTERESTED IN
 MERGER PLANS

| NEW 1Ohh, May 70 lHJ-I WI strategic railroad consolidation moves, one in the rapidly growing southwest tive eastern trunk line territory have focused the watchful eyes of Wall Street upon Leonard F. Loree, head of two of the most compact railroad systems in the United States, the Kansas City Southern and the Della ware & Hudson.
 At time when ambitious plans for regrouping the railroads into small number of large systems are taking shape in the different sections of the country, MT. Loree has taken inde- pendent action, laying the basis for prospective consultations built up around his own railroads.
 A former associate of F.. H. Harri- man, MT. Loree is credited with exc cutting play, reminiscent of the days of this great railroad builder, in l plan for fifth trunk line in opposi- tion to the "four-power" grouping pro- posed by the New York Central the Pennsylvania, Baltimore & Ohio and Nickel Plate systems. Furthermore the president of the Delaware & Hud- son recently obtained a lease on the Buffalo, Rochester and Pittsburgh Railway, small but prosperous soft coal carrier, highly important to any plan of regrouping the eastern rail- roads. The road originally had been allotted to the New York Central un- der the 'big four" proposals outlined to the Interstate Commerce Commis- sion.
 MT. Loree's quiet and unexpected acquisition of the line, Wall Street agreed, had circumyented the "big four" consolidation scheme The Wabash Railway, controlled largely by the same banking interests, it was ! believed, would be available to the Delaware & Hudson as a route to l Chicago and could be tied up easily with the Buffalo, Rochester & Pitts burgh at Buffalo.
 Only the acquisition of some such road as the Lackawanna or Lehigh Valley, to provide the double function ot connecting the Delaware & Hudson with it's new leased line and serving as an entry to the port of New York. would be needed to round out com prehensive system, which would es- tablish network of lines, linking Montreal, Buffalo, New York. Pitts burgh, Detroit and Chicago.
 The Lehigh Valley Wall Street, be- lieves, is already virtually controlled by the New York Central and event ually will be included in that sys- tenn. There is possibility, however that the Lackawanna, on which the Van Swerigens and the Pennsylvania | covetous eyes, may go to the highest 1 bidder, and if any contest for control develops, MT. Loree is certain to be in the fight.
 l Whether or not the Delaware and Hudson executive is successful in car rying out his conception for a fifth trunk line, he will command favor able bargaining position. If the Del aware & Hudson fails to become the nucleus of a greater railroad, it will at least be fitted into ''big four" grouping only on it's own terms.
 In the southwest, the Kansas City Southern has obtained strong foot hold and perhaps working control of the Missouri-Kansas-Texas Railroad, a much larger system. No direct ne 1 gotiations for a merger have yet been broached, but when the time comes for linking up the small southwestern lines, MT. Loree and his associates, with two railroads under their con- trol, probably will be able to dictate the terms and layout of the merger, which is expected to embrace the St. Louis-San Francisco, Chicago & AL ton and several smaller carriers.
 Notwithstanding the conpectural elements surrounding the ultimate de- velopment of the two systems, Wall Streets imagination has not been slow to grasp the possibilities of sym pathetic traffic relations which might be effected between Loree railroad in the southwest and a fifth eastern trunk line, which, through the Wa bash, would extend to St. Louis.
 Associates of MT. Loree recall that it was only short time ago that he was violently opposing what he term ed 'sgrandiose consultations. In his merger plans they insist that he will