Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-03-29
BY DONALD b. HADLEY
star Financial Editor

star FINANCIAL Editor
WHITE SULPHUR SPRINGS,
w. Va, Mar. 29.-The Chesa-
peake g. Ohio Railway told its
stockholders here today that
1t did not expect the courts to
reverse Interstate Commerce
Commission approval Of its ac-
QUESTION of the Baltimore q
Ohio Railroad.
Walter ]. Tuohy, president Of
the Gao, told the more than
1000 stockholders who attended
the company's annual meeting
at the Greenbrier, that the
courts have never reversed an
ICC decision on a merger or
consolidation.
He was referring to the JUS
tice Departments petition In
Federal District Court in De-
troit earlier this week, chal-
longing the commissions deci-
sion. The department had
acted in answer to a suit to
annul the decision that had
been brought by the Brother
hood Of Maintenance Of Way
Employees.
I'VE do not believe the
brotherhood's opposition or
this belated intervention by the
Department Of Justice will in
fluence the court to reverse
the decision of the commits
sion," Mr.. Tuohy declared.
Held Narrow Issue
In its answer to the brother
hoods suit, the department did
not in anyway question the
merits Of Gao control of the
BIO, but based its opposition
entirely on the grounds that
the commissions finding was
not based on substantial evi-
dence with respect to the i'm
pact on other railroads, Mr..
Tuohy emphasized.
THE departments opposi-
ton is limited to a narrow is
sue and is expressed for the
first time at almost the last
stage of the proceedings" he
declared. During the entire
80 days of hearings, spread
over eight weeks, the depart
ment was represented. At no
time did the Assistant Attorney
General ever raise a question
or offer testimony on this or
any other point" he said.
"Of the commissions So
page decision, nine pages. or
about one-fifth, are devoted to
the consideration and rejection
Of the charge of traffic diver
sion," he said. "Only the
B q O's physical and finan-
cial distress received attention
in more pages of the decision. "
Improved c & o operations
in the first three months of
this year will produce a net
income equal to more than 81
cents a share, compared with
70 cents a share a year ago,
Mr.. Tuohy reported.
Barring any extended work
stoppages or general business
falloff, the management sees
nothing in 1868 that will dis
turb the existing dividend
rate of "a a year, he added.
The stockholders attending
today's meeting included many
who formerly owned stock in
the B g. o, but now are
c 81 o owners under terms of
the affiliation.
The meeting was held in an
almost theatrical setting. Flow
ers banked the broad platform
of the Greenbrier's largest hall
and a five-piece orchestra
played. Stockholders, som e
coming from as far as Maine
and California, filled the more
than 1000 seats in the hall.
Behind the speakers stand
were long rows Of vice presi-
dents and other Gao and B8cO
officials. Behind and slightly
above these we're ranged the
directors. including Cyrus, the
financier who is Gao board
chairman.
In his remarks, Mr.. Eaton
contended that industrialists
manufacturers and bankers hao
provided more valuable leader
ship in building the United
States than generals, admiralS
and statesmen.
Don't forget that George
Washington was a business
man before he was a general
and a statesman" he declared
Jervis Langdon. jr., presi.