Embattled Virginians

With one exception, the Van Sweringens are having their own way with their projected Nickel Plate merger (TIME, July 7, Aug. 11, Aug. 18). Erie shareholders have voted to accept their terms for leasing the road to the new consolidation, thus marking the real end of the historic Erie as an independent road. Pere Marquette shareholders. according to report, are about to follow suit.

With the Chesapeake & Ohio stockholders, however, the situation is very different. The Van Sweringens bought the majority of C. & O. stock for the Nickel Plate rather easily. But, when it came to persuading minority C. & O. stockholders to accept the leasing terms which they proffered, vigorous protest at once developed.

In Richmond, a committee of C. & L stockholders organized, pooled their holdings and, in a circular to other fellow shareholders, declared that they were being unfairly treated by the terms of the Van Sweringens' proposed lease. The embattled Richmond committee, indeed, has claimed that the C. & O. would have shown earnings of $38 a share last year, if the same amount had been spent in maintenance in 1924 as in 1922. In other words, the C. & O. management, according to the committee, took this way of hiding much of its actual earnings (and, therefore, worth). The Richmond committee wants better terms.