Evening star., 1925-12-30
RAILROAD MERGER
PROJECT ATTACKED
Attorney Says Van Swerin-
gems Will Clear Enormous
Profit From Deals.
BY the Assoriated Press.

BY the Aesocisted Prrss.
Arguing against the Nickle Plate
Railroad merger. II. W. Anderson.
representing Chesapeake and Ohio
minority stockholders. told the Inter
state Commerce Commission today
that the profits OF O. p. and M. j.
Van Sweringen and their associates
in the plan would total $S6 ,36l ,165.
The project was characterized by
Mr.. Anderson as a purely tina ncial one
and he urged that 1t he not approved
by the commission. Criticism of the
whole career OF the Van Sweringens
I'm the railroad world marked the de
velopment of Mr.. Anderson's arsu-
ment.
Use Private Cars.
There are curious things about
All of the Nickel Plate orga MIA tions.
he, said THAT railroad has seven
vice presidents. few OF whom have
any duties. but all OF whom use pri-
vate cars for travelling about
DO they All travel on passes?
Commissioner Campbell asked.
II don't know" Mr.. Anderson re-
snonded but when we wanted one
Of them to testify in this case we
found he was travelling around with
his family and another man and ms
amily looking at condensed milk
plants all over the United States.
Then. whenever the Van Swerin-
gems have anything 10 do they or
ganiZe a separate cofporation-look
Al the numbers of then. in this rail
road consolidation. When you ind so
many they constitute prima facle
evidence OF fraud.
The alleged benefits and savings
they have alleged can he made out
Of this consolidation relate almost
exclusively to benefits TO these cor
poration-not To the public or the
transports ton structure OF the coun-
try The merger is Of no good TO the
public. 1t is Illogical and unecOnomic.
There is obviously no business rela-
tionship Of any consequence between
these Ave systems The real purpose
is that OF henefting the promoters and
Ia mixers of this group OF railroads.
Whenever these gentlemen got to
A crisis anywhere and needed help,
he continued. the New York Central
Was right there. They headed into
the same banking house. Mr.. Van
SWerin9en said the Nickel Plate was
not little brother 10 the New York
central but | am sufficiently familiar
with financial expedience to say that
the whole thing proves the relation
ship was At least very close.
Had Trustee Relationship.
After the Van Swerineens got con
troll Of the Chesa peake and Ohio they
built up the deposits Of that railroad
with j. r. Morgan Co. the Union
Trust Co. in Clevela nd and the First
National Bank in New York. And
then from these 40 me institutions the
Van Swerincens obtained loans. ]
had a proposition like that in court
one time. trying TO defend director
who had obtained loa ns from bank
where his corporation deposited. and
the Judge held that my client. because
Of his trustee rela ationship. had 10
turn back whatever he had bought
with the borrowed money to the cor
pora ton. All through the Van S"er-
ineen manipulation their trustee re.
lationship existed.
Il have now shown YOU that the
Van Sweringens are taking in profits
SIG 0O0. 900 from the air rights Of the
Clevela nd terminal. while they are
taking Sl4 900 "0o more in the acoui-
sition OF rapid ransir facilities. Then
there is that Calumet Co. transaction
in Chicago. where they take 81 500 .o0h
more from the acquisition of lands
for The Nickel Plate railroad-mOney
that really belongs 10 the 81 stockholders
OF the railroad.
From the he ndline of the securities
of these railroads now in the Nickel
Plate treasury they take more. The
final figure is 3S6 .361. .7s5-the total
Of what they will make. clean up by
this transac action. Then there is SIS
273 900. which would GO to the mi
nority stockholders OF the Nickel
Plate.