Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-01-06
MEN AND MONEY
By NJ. S. Rukeyser.
tCopyright. 1920

Inc cleveland DaCnelOT DIOtIlel .
who were once newsboys and who are
now sponsors for the proposed $780,
| 000,0 900 Nickel Plate merger, literally
| believe in expressing themselves
through action-not through words.
O. p. Van Sweringen. who like his
| brother, Mantis j., has come to be
| known as a silent man, was articulate
| to an amazing extent on the witness
stand during the Interstate Commerce
| Commission hearings. On formal oc-
| casionS he will make a record of
things done, but he does not believe
| in talking about prospects and un
! finished business.
The attitude of the Van Sweringens
| toward publicity was recently indi
Gated by the Erie Railroad incident
Wall Street bristled with rumors-ir
responsible rumors-to the effect that
| the Van Sweringens had decided to
drop that railroad from the proposed
unification. The Van Sweringens re-
manned silent, but at the first oppor.
| tunty disclosed their real intentions
| by announcing that J. J. Bernet, the
chief operating official of the Van
| SWeringen roads, would become presi
dent of the Erie. That announcement
disposes of the rumor.
Mr.. Bernet was president of the
| Nickel Plate during the decade of up,
building under the Van Sweringen
| control.
Prophecy Is Dangerous.
| Prophecy in the field of finance is
| dangerous, and is usually INDUCED in
| in inverse ratio to actual knowledge
! of q situation. Yet the logic of events
show Enthusiastically that the time has
come when the Van Sweringens will
| begin to apply to the Erie their
| technique for revitalizing a railroad
| Under the presidency of F. d. Under
| wood, the property has already been
| improved far more than generally
realized in recent years. But in the
conversion of the heavily capitalized
Erie from a weak to stronger road
much remains to be done.
What will the Van Sweringens do
with the Erie?
They will no doubt continue to de
velop the Erie essentially as a
freight carrier. The road already
gives swift service between New York
and Chicago, but the Van Sweringens
will probably want to quicken the
schedules. Mr.. Bernet's outstanding
achievement on the Nickel Plate was
his efforts in the direction of setting
new high marks in swiftness of
freight train movements. The Van
SWeringens were the first railroad
officials to recognize the enormous saw.
ing to business men that would re.
suit from quicker deliveries, thus
cutting down inventory needs and the
cost of financing goods in transit.
No doubt, the Van Sweringens will
rtN6 l. Ntas-te. 81
equipment. Those close to the Van
SweringenS assert that the brothers
believe that Erie is O. X. as to the
number of engines and cars in service
but that they feel that the character
of the equipment is not satisfactory
The locomotives, for example, are toe
light. Many of the cars are anti
quated. The Van Sweringens tested
the value of heavier equipment on
the Nickel Plate and the Chesapeake
k& Ohio, and have unquestionably
worked out a similar program for
undermining the equipment of the
Erie. The plans. probably also call
for longer train loads and the con.
struction of new sidings to take care
of them.
Erie Standing Joke.
For decades, Erie had been the
standing joke of Wall Street. The
Wall Street way of referring to the
millennium was the day when Erie
pays dividend. The new prestige
of the system, however, is reflected
in the current high price for the
stock
Erie has a lower grade TO Chicago
than New York Central. Its line to
Chicago will be shortened by merger
with the Nickel Plate. The system
will then have parallel lines to take
care of traffic from the Chesapeake
and Ohio and its subsidiary, the
Hooking Valley.
On the calendar of 1927 events the
return of the Van Sweringens with
revised plans for the, unificat ton
ago the commission rejected the first
program on financial, not Transports
, ton. grounds. Meantime, the Van
Sweringens have sought to rear
range terms to meet the I. c. G.
conditions. 1t has been slow work
because the delays and official objec-
tions encouraged minority dissenters
to hold out and create a. nuisance
value for their securities.
Activity of Krupps.
In the new Germany, comparatively
little is heard of the Krupps, who
were the chief industrialists of the
old regime. Quietude, however.
should not be interpreted as inaction.
Krupp is the only important Ger
man steel concern to remain aloof
from the huge combination into
which the other metal industries of
Germany have consolidated. The
krupp Works, which prefer splendid
isolation, now include besides the
mother establishment at Essen, nu-
merous branches constituted as
separate companies, but under the
presidency of Krupp Won Bohlen, the
present head of the famous German
house.
AS part of the terms of the peace
settlement. Krupp's activities have
been restricted. At present the COM
pany is permitted by the interallied
commission to manufacture no more
than four 17-centimeter pieces a wear