Evening star., 1935-09-30
VAN SWER|NGENS
QUALIFY TO REGAIN
LOST RAIL EMPIRE
Brothers Expected to Have
Little Competition in Bid
ding in Key Securities.
WALL STREET EXCITED
OVER MORGAN AUCTION
Sees Possibility Group of Capital
lists May Step in and Seize
Control of Roads.
BY the Associated Press.

BY the Associated Press.
NEW YORK, September 30.-The
Van Sweringen brothers of Cleveland
and Others" were qualified to bid
today for the key securities con-
trolling the s3,OO0,000,00O railroad
empire slated to be auctioned at $3.50
pm.
This was learned at the Offices of
J. P. Morgan g. Co., head of the
credit banking syndicate which is
auctioning the securities, after the
deadline had passed at which time
prospective bidders were required to
make deposits with the Morgan firm.
Usually well-informed quarters in
Wall Street financial and railroad
circles, however, expressed the belief
that the Cleveland brothers would
have little competition in the bidding
Morgan Offices Silent.
The Morgan Offices declined to re-
veal the identity of persons qualified
or to say whether the Van Sweringen
bidder would be the Mid-American
Corp, incorporated at Columbus by
Van Sweringen lawyers last week.
L. F. Loree. frequently mentioned
as a possible contender for the con-
trolling interest in the Van Sweringen
railroads, was authoritively said to
have made no preparations to bid.
The creditor banking syndicate had
made preparations to place through
Morgan & Co. protective" bid,
based on today's late prices for the
securities, particularly the 81 per cent
interest in Allegheny Corp, key rail
holding company of the Van Swerin-
gems. The block of Allegheny shares
had a total quoted value today Of
around 100000.
Wall Street Interested.
Wall Street was still excited, how
ever, over the possibility that some
new interest might step in and outbid
the Cleveland brothers, thus seizing
control of the largest group of private
ly held railroads on the American
continent. aggregating some $4,000
miles.
Railroad quarters generally thought
it highly unlikely that any outside rail-
road interest would bid. They pointed
out that any railroad company desir-
ing to acquire the Allegheny shares
would have to get permission from the
I. c. C. The only possibility, it was
thought, would be that some group of
capitalists might enter the contest
in the belief that railroads are emerg-
ing from the depression.
Rarely has Wall Street shown such
keen interest in a security auction.
Many railroad. financial and other
persons expressed intention of attend
ing the sale in the musty old Ex-
change sales room in Vesey street, long
known as the grave yard" of securi-
ties. because the issues usually placed
on the auction block there are of
virtually unknown corporations, and
of little value.
Brothers Consent TO Sale.
The decision to place the securities
under the hammer was with the full
consent Of the brothers, o. P. and
NJ. j. Van Sweringen.
The $4,000, 10000 corporate struc-
ture reared by the brothers during
the l92o's had been only nominally
in their control since 1890.
In that year they applied for and
received from the Morgan firm and
associated banking interests such as
sistance as necessitated the pledging
of great blocks of Van Sweringen
Corp. Allegheny Corp. and other
holding units which sew up control of
the whole empire.
Included in the collateral were
more than 100000 shares of Ale
ghany Corp, 1,244,580 common shares
of Van Sweringen Corp. and a varied
assortment Of rail, coal, steel, termi-
nal and other securities which had
(See VAN SWERINGENS. PAGE ~