The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1925-05-08
NICKEL PA 7 {
MERGER PLAN
HITS SNAG
Minority Stockholders of 3. &
O. Block Van Sweringens.
Appeal to !. c. G.

Minority stockholders of the
Chesapeake and Ohio railroad threw
bomb today in the Van swerinsen
merger plans when they asked
the Interstate Commerce Commits
sion to require o. p. and M. j.
Van Sweringen, Otto Miller, j. j.
and w. A. CoIston to show cause
why orders Of the commission per-
hitting them to serve as members
of the board Of directors Of the
Chesapeake and Ohio and Hooking
Valley railroads should not be an
nulled.
Through Thomas r. Gay. the,
minority stockholders also asked
that the commission order the
Nickel Plate Company. which 10
to be the holding company In the
Van Sweringen merger plany and
the Van Sweringens, together with
ali persons directly associated with
them be required within a time to
be fixed by the commission to sell
and dispose Of all stock Of the
Chesapeake and Ohio and the Hooks
ing Valley, held or owned by them.
directly or indirectly, and to re-
lease the Chesapeake and Ohio ana
control which has been used to
the prejudice Of those companies.
Of the interest Of their stockholders
and OF the public, which they
serve"
The petition also asked the com
mission to "forwith dismiss" the
Van Sweringen application to merge
the five railroads involved In their
plan, upon the ground that 1t has
not been lawfully authorized and
cannot be lawfully authorized by a
majority Of the boards Of directors
Of the Chesapeake and Ohio and
the Hooking Valley railroads as
now constituted, or by any meeting
of stockholders OF such companies
so long as the substantial control
OF the stock Of such companies il
held by the Nickel Plate, the Van
Sweringens and their associates.
$500 Represented.
The minority stockholders filing
the application were George Cole
Scott, John Stewart Bryan, Lind
sey Hopkins. George. S. Kemp and
Berkeley Williams, who claimed In
their own right and as stockholders
protective committee representing
500 other holders Of preferred and
common stock Of the Chesapeake
and ohio railroad. They claimed to
Town In excess Of 145,000 shares Of
the stock Of that railroad, with an
aggregate par value in excess OF:
81, 500 900.
Withheld Information, Claim.
The minority stockholders alleged
that the Van Sweringens and their,
associates, in their scheme for de-
spelling the minority stockholders,
have, during the period OF the de-
lvelopment Of the merger plan, de-
liberately suppressed and. withheld
information from the stockholders
Of the companies, to which they
were justly entitled.
It was further alleged that the
Van Sweringens have used the
corporate, executive and operating
organizations OF the companies in
volved and their financial resources
for the purpose Of carrying out the
scheme for taking the properties OF
the companies away from their
stockholders, land transferring
them to the proposed new COM
pany, to be substantially controlled
by them, and are now diverttng the
activities of the directors; Officers
and resources Of the companies to
the promotion and development OK
the plan or scheme in their own
interest and to the prejuaice Of the
other stockholders Of the said COM
nanies."