Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-04-05
MEMBER OF |. c. c.
SAYS RAILS UNIFIED
DESPITE DECISIONS
Van SWeringens Charged
With Operating Through
Holding Companies.
BY the Associated Press.

BY the Associated Press.
The Van Sweringen interests of
Cleveland were charged by Commits
sloner Eastman of the Interstate Com
merce Commission today before the
House interstate commerce committee
with unifying railroads under their
control through series of holding
companies despite adverse decisions of
the commission.
Eastman said that the Allegheny
Corporation and other holding COM
panies had been organized by the Van
Sweringen interests and had acquired
valuable and large holdings in many
railroad companies. Previously he told
the committee Of the holdings of the
pany, dominated, he said, by officials
of the Pennsylvania Railroad Co.
Most railroad holding and investment
trust companies, as we'll as certain rail-
roads, the commissioner said, should be
investigated by the committee in its
inquiry to ascertain who actually con-
trolls the transportation lines of the
country in order that the plan for rail-
road consolidation can be carried out
under Government control.
Principal Companies.
Eastman said that the Allegheny Cor
poration, which is controlled by the
Van Sweringen interests, and the Penn
road Corporation, which controls stock
of the Pennsylvania Railroad system,
were two principal holding companies
to be scrutinized.
At the outset of the hearing Eastman
told members of the House interstate
commerce committee, which is con-
Quoting the investigation, that he would
give his individual views and that he
did not speak for the commission.
The inquiry, authorized by the House
several weeks ago. is expected to con-
tinue for several months and subcom-
mittees are to hold hearings next Fall
in a number of large cities. particu-
larly Cleveland, where the Van Swer-
ingens have their headquarters, and in
New York.
The witness continued that the first
time railroad holding company actlvi-
ties were brought to the attention Of
the commission was in 1921. when it
was found that the Western Pacific
Railroad Corporation had taken over
the controlling stock of the Denver g.
49, "CotCAA4 4bdAAAOd0 w.
Eastman discussed in detail the
of the Pennroad Corporation
at the instance of w. w. Atterbury.
president of the Pennsylvania Railroad,
and gave a list of the holdings of the
company which he said had been given
to the commission by Pennsylvania
Railroad officials.
The list as of January q, 1929, in
Guided 5000 shares in the Atlantic Coast
Line, about 1 per cent of the voting
power, and 150,101 of the Boston g.
Maine, about 17.2 per cent of the voting
power It also showed the Pennsyl-
vania Railroad Co. itself held a sub
stantial block of stock in the New
Haven Railroad, which, in turn, held
290, 283 shares in the Boston g. Maine.
Pennr0ad's Shares.
The Pennroad Corporation, he said,
held 81 1913 shares in the Canton COM
pany; 44,722 shares of the Detroit &
Ironton, the entire issue; 64,588 COM
mon and 59.491 preferred shares in the
Detroit, Toledo & Ironton, about 80
per cent of the voting shares: 10000
shares of Lehigh Valley, less than /
per cent Of the voting power; 10000 of
the National Freight Co., the entire
issue: 98,800 common and 1900 pre-
ferred stock in the New Haven, less
than 5 per cent of the voting power.
Additional Holdings.
Eastman said the Pennsylvania Rail-
road Co. itself had 73,025 shares in the
New Haven line In 1929, but that At
terbury recently said that it owned 204,-
600 shares.
The Pennroad Co., he said, also held
900 $50 shares in the Pittsburgh g. West
Railroad Co., little less than
"a per cent of the voting power.
"Our understanding is that 100000