Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-05-25
NEW RAIL PLAN
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Sweringens by that time had $3.50, 900
they could call their own, but they
also had the confidence of the business
men of the city, which means they
had abundant credit. A syndicate Of
personal friends joined with them in
raising the 100000 for the down
payment, and the Central took 10
notes of $650,000. This transaction,
taking place away back in 1915, indi-
Gated that the shoestring Of O few
hundred dollars which they took into
Shaker Heights had already developed
remarkable resiliency.
The war came along and the actiyi-
ties of the Van Sweringens were OBJ
scured by mightier events across the
seas. But 1919 found them proceeding
apace with their plan to construct in
the public square a railroad terminal
worthy of the city. Cleveland was then
served by q number of small and un-
slightly depots, not in keeping with
Sweringens ignited the spark OF civic
pride, with the result that the mag
nificent new terminal is now In opera
ton and the city Is exceedingly grate-
full to the two men who spurred the
undertaking to completion.
Illustrative Of the essential ShynesS
Of the brothers is the manner in
which the new terminal was opened to
the public. Civic leaders thought the
event worthy OF celebration. They
suggested inviting President Hoover to
he Rrof traS 81, 10 or
its shelter. The Van Sweringens vetoed
this, and they also disapproyed the
suggestion that the President be in
vited to press q button Illuminating
the new structure. When the local
leaders submitted plans for local cell
ebration the brothers revealed their
fear that this might mean that they
would be placed on public exhibition,
might even be called on for speeches.
Eventually, therefore, the terminal be-
gan operation without any ceremonies
Whatsoever One night it was dark,
its portals barred. The next morning
1t was filled with the hustle of ar
irving commuters. -t..
Nickel Plate Was Ace.
Their ownership of the Nickel Plate
was q very valuable ace in the hole
for the Van Sweringens when the Esch-
Cummins act projected the scheme Of
q limited number OF railroad systems.
In the rich railroad territory between
the Atlantic and the Mississippi, the
of the hour-glass. The brothers were
now not only rich, but they were known
beyond the city limits Of Cleveland
Wall Street was cen in the mood tx
| become acquainted which was fortu-
nate, for there was natural limitation
on the available capital in Cleveland.
One day o. P. Van Sweringen packed
| his bag, went to New York and paid
| q business call on the House of Nor
gan. Apparently he sold himself there
as he had done years before as the
sequently came to light, at hearings
before the Interstate Commerce Com
mission, that at one time the Van
| Sweringens owed $76.000.000 to the
| Morgan firm and $22,000,0 900 to the
| banks of Cleveland. And all this huge
sum was secured by collateral.
Following that first visit to the
House Of Morgan came the beginning
Of the real railroad activities OF the
brothers. They began to buy into the
' Chesapeake & Ohio, the Erie. the Pere
F; Marquette and smaller roads which
| could be connected up with the 523-
| mile stretch Of the Nickel Plate to pro-
| vide q real trunk-line system. AS the
| securities of these roads mounted in
| value the Van Sweringens mounted In
importance in the railroad world.
| They suffered one nishap in 1926
| and for q while the financial world
burst The Interstate Commerce Com
mission rejected their original plan o
consolidation, and in the stock marke
there was an instant reaction. TIN
panic seemed serious at that time
March. 1926-but by comparison will
what was to happen in the CLOSING
months of 1929, 1t was gentle zephy
to a cyclone. The Van Sweringen
weathered the storm. to the amaze
ment of many in the railroad ant
financial worlds. Another plan of con
| that rejected in 1926, now has tn
virtual approval of the Interstate Com
merce Commission. If Congress eve
does get around to action on the plai
| which the I. G. G.. has so laboriousl.
prepared, the Van Sweringens are jus
as certain to have their system In tn
| Eastern territory as are the Pennsyl
vania. the New York Central and tn
Baltimore 81 Ohio.
In discussing these brothers. however
prophecies are vain. They will probabl!
maintain their secretiveness in the fu
ture as they have in the past. Equipped
with the customary number of "contac
men" and public relations counsel, thu
Van Sweringens have never overcome ;
horror of attracting undue public at
tention. They lunch in private room
t. escape TIE curious or the bumptiou
chance acquaintance who might hi
them up for job for brother-in-law
They live In constant fear of the tab
loid reporter who asks whether 1t is tru
that one or the other Is to be marie,
next week. For the Van Sweringens ar
probably the most eligible bachelors II
! America today--btit the chances ar