Evening star., 1927-05-10
NICKEL PLATE WILL
DROP c. & 0. STOCK
Holding Company to Take
Over Interests-Might CIar-
ify Van SWeringen Plan.
BY j. c. R0YI.E.
Special Dispatch q The star.

NEW YORfSsg May 10.-The inter-
est which the Nickel Plate Railroad
holds in Chesapeake & Ohio .will be
divorced from that railroad before the
week is out. In the next few days a
company Will be formed which will
take over all the interest of the Nickel
Plate stockholders and the Van Swer-
ingen Bros. and their associates.
This company, sponsored, it is un-
tierstood, by the same tinanciers who
put ont the $50. 900 900 Erie bond issue
Monday and who are headed by j. p.
Morcan e Co, will issue securities for
a capital structure involving about
$50, 900. 900. The stock of this com
pany will be distributed to the indi-
yidual shareholders Of the Nickel
Plate In proportion to their holdings
and the equity Of their stock in the
Chesapeake & Ohio holdings and to
the Nanoss Co, which represents the,
Van Sweringen personal holdings.
Will Buy Control.
Control of the Chesapeake & Ohio
now is divided between the Nickel
Plate shareholders and the Naness Co.
The new corporation. which viii be
holding company. will buy from these
two sources all the stock necessary TO
control the Chesapeake 4 Ohio and
pay for it by giving stock IN the news
concern.
This will enable shareholders of the
Nickel Plate TO dispose of their CheSa
peake & Ohio equity if they are dis
posed to sell their shares in the new
company. II is c0ntcnded 1t Will set
at rest all disputes as TO proposed
merger within the ranks of the share
holders themselves, and the Issue of
nf 10
will release a large sum of borrowed
money, estimated at between $30,000,-
900 and $40, 900, 900.
It also is calculated that this move
will improve the position of the van
Sweringen interests materially before
the Interstate Commerce commission
when the various moves looking 10
the proposed mergers are considered.
In addition, it has been a proud boast
of O. +. Van Sweringen that the Van
Sweringen interests have never made
a nickel in stock speculation based on
the proposed merger plans and that
any profit to them has come as. share
holders of the Nickel Plate and that
the same profits have come proper
tionatelv to every other stockholder of
the road. The new plan will enable
those stockholders to act independent
lv as to holding or selling their in
terest in the c. & O. according to
whether they think they see a profit
in holding or unloading.
VIII Affect Railroads.
The railroads of the Northwest, the
Middle West and those running TO
tidewater terminals all will be affected
by the decision of the Chicago Board
Of Trade as to whether trading will
be continued in December grain
futures. If the Illinois Legislature
passes the kessinger bill, providing
for a commission of three members
with regulatory powers over the
Board of Trade, the governors of the
board say they probably will stop
dealings in December futures.
1t looks as though the bill might
pass, owing to the disturbance caused
over the alleged fraudulent marking
up of grades by the Armour Grain
Co. If trading were stopped. the
Twin Cities would benefit and prob
ably would become the grain-trading
center of the country. Outside mar
kets are we'll equipped to handle
wheat, although not so well fixed to
handle corn on big scale. If the
trade moved to Minneapolis the haul
ing of the grain would suffer a ma
terial change in routing, with gain
to some roads and losses in traffic
to others.
If the present furry passes it is
possible private control of elevators
may be done away with at Chicago,
and the board will certainly entertain
some scheme for better regulation
within itself.
The securing of a man to devote
all his time to the job of being the
Lands of the grain trade is men,
toned as a possibility. The presidenc
and the board of governors now
exercise regulatory powers, but theirs
is only a part-time job and they do
not devote all their energies to 1t.