Evening star., 1935-10-23
BY CHARLES NORMAN.

BY CHARLES NORMAN.
NEW YORK, October % LP.-The
Van Sweringens. bachelor brothers
and partners. built up their intricate
railroad empire by intricate financial
wizardry.
They bought road, then cast about
for another; bought it with the Sc
curity of the first for collateral; cast
about for another: secured it with
the previously acquired property.
In an era and a market of rising
values, it worked-and was profitable.
When values began to shrink and
the market for securities received set.
back after setback, the value of the
pyramided collateral shrunk. The
mammoth structure that represented
the Van Sweringen domain creaked
here and there, leaned like the Tower
of Pisa and finally toppled.
Pick Up Wreckage.
They picked up the pieces &. bor-
rowed, reorganized, readjusted. turned
back to Morgan, the r. F. c., the
banks and the public.
Grlmly they held on to the vast,
complicated structure they had reared,
charted metamorphosis that would
bring them back to railroads front
rank and came through, not exactly
with flying colors, but with their flag
still raised.
1t wasn't in Wall Street that the
Van Sweringens began their rehabili-
tation. 1t was back home, in Cleve-
land among old and tried friends
that their comeback was charted.
They were still boy wonders" in
their home town. The Van SWeringen
personality that had charmed the
house of Morgan still was potent.
Their name-and in the background
miles of cleaning steel railS-Still was
magic in the city that had seen their
spectacular rise.
The house of Morgan had lent
millions to the Van Sweringens, had
been their banker. and had lost
heavily Finally it had control Of the
railroad. industrial and real estate
empire pieced together by the bache-
lor brothers in their steady march to
the top during 20 years. The brothers
had given over key securities of their
properties as collateral for $4,000
600 they we're unable to repay.
Auction Decided On.
An unprecedented step followed.
The house of Morgan decided to place
the Van Sweringen holdings on the
auction block. Wall Street-and the
world of finance at large-buzzed over
this spectacular turn and then sat
back to see what the Van SWeringens
would do.
The auction was scheduled to take
place at $50 pm. on September 30.
A few minutes after o'clock. o. P.
Van Sweringen was seen walking
down Vesey street, New York. with
him was George A. Ball, Muncie. Ind,
manufacturer. They came to No. 18,
scene Of the auction, entered and sat
down to watch the proceedings. A
murmur ran through the room.
Two days before, in Cleveland,
there had been formed the Midamer-
lea Corp. While tense crowd looked
on, 1921 900 was bid for controlling
securities in the O00000,000 Van
SWeringen System-and knocked down.
Once more a holding company had
triumphed for the Van Sweringens
They were back in the big time. with
the aid of Ball and George A. Tom
lnson of Cleveland, Great Lakes
shipping magnate.
Another Triumph.
The boy wonders" their hair now
shocked with gray, had triumphed
again.
The deal that had won back for
himself and his brother control of
their vast domain marked the end of
their relations with % Wall street.
Spectacular as had been their out
ward life, shyness and simplicity still
were Van SWeringen traits When the
first lot was bid for. and the Morgan
group at the auction made no move
to top the bid, O. P blushed as he
realized the first step toward regain
ing control of his railroads had been
accomplished.
He blushed again as friends con-
graduated him.
A reporter asked him once who was
his favorite author
Rand, McNally." he replied.
Maps are his passion and he has
one of the most extensive collections
OF maps in existence, especially those
that show the tentacles of his rail-
roads octopus reaching east and west
and north and south.
(Tomorrow-The men who helped
the Van Sureripuope .soo,,,a L.I. -,