Evening star., 1935-09-29
VAN SWER|NGEN
SET FOR BATTLE
"Midamerica Corporation
Reported Formed to
Capture Rail Stock.
Rx the Associated Press.

BY the Associated Press.
CLEVELAND, September 28.-Fi-
nancial circles here believed tonight
they had spotted the corporate vehicle
through which o. p. and M. ]. Van
Sweringen, Cleveland capitalists, ex-
pect to fight for control of their vast
railroad empire.
It is, the observers believed, mid
america Corp" chartered at Colum-
bus, Ohio, today with 100000 shares
OF no par-value stock.
Neither Of the Van Sweringen BROTH
ers could be reached for a statement
and 1t was assumed they had gone
to New York to be ready to bid, in
the name of the corporation, for the
collateral they posted several years
ago with j. P. Morgan & Co. for a
loan which with interest now amounts
to about $48,000.000.
Included in the collateral are stocks
representing control of a large part
OF the choicest portions OF the Van
Sweringen empire. It is understood
that one of the biggest items to be
put on the block will be about so
per cent Of the common stock of the
Allegheny Corp, a holding company,
which has control or virtual control
of the Chesapeake & Ohio, the Pere
Marquette. the Erie and the Nickel
Plate Railroads, as well as a con-
siderable interest in the Missouri Pa
cific and Eastern Illinois Railroads
all of which combined comprise the
largest personally controlled railroad
system in the country.
Amount Still Uncertain.
How much money will be required
to buy in the collateral which the
Morgan firm recently decided to mar
ket, is still uncertain.
Midamerica Corp. was incorporated
by Thomas H. Jones, William H.
Chamberlain and Catherine Martin,
all of the Cleveland law firm Of Tolles.
Hogsett & CHM. but in financial cir
cles 1t was quickly pointed out that
Frank H. CHM. one member Of the
firm, long has been an associate of
the Van Sweringens and is director
Of several OF their railroads.
Jones said: 1--WE frequently form
corporations for clients and any state
ment must come from them. OF course
you are privileged to assume what you
please" None Of the others Of the
law firm would confirm or deny the
impression that Midamerica was
formed as a part of the Van Swerin-
gems plan.
Battle Royal Possibility.
The possibility that the auction
Monday may become financial bat
tie royal" should rivals attempt to out
bid the Van Sweringens was discussed
in financial circles tonight on the
basis of recent unconfirmed reports
that several groups of financiers were
being formed during the last few days
to attempt to wrest the railroad en-
pire out Of the Cleveland brothers
hands.
At the time the Morgan firm an
nounced the auction would be held
the Van Sweringens also announced
they had obtained fresh capital to
strengthen their bidding capacity, but
they have subsequently refused to dis
close the source of their aid.
Wall Street, however, unofficially
heard the new money would be OBJ
tained by the Van Sweringens from
four business men, two in Cleveland.
Should the Cleveland brothers sue
coed in regaining control Of the COL
lateral through the auction sale, they
will have accomplished one more of
the many spectacular financial strokes
for which they have long been famous.
ORGANIZATION FORESEEN.