Nickel Plate

Whatever has been urged against the proposed Nickel Plate merger, charges of "watered stock" or inflated capitalization have been conspicuous for their absence. In 1924, the five constituent properties (present Nickel Plate, Chesapeake & Ohio, Erie, Pere Marquette and Hocking Valley) showed a combined net income of $34,937,052. This is sufficient to take care of the 6% dividend on the 1,317,150 proposed shares of preferred, and then amount to $17.93 a share on the $150,753,522 of proposed common stock. In a similar way, the earnings of the constituent roads for 1923 would amount to $14.50 on each proposed common share in the new merger. Earnings for the current year on the same basis are expected to equal or surpass those for 1924.

In Washington, however, the hearings on the Nickel Plate merger are making very slow progress, if indeed they are not temporarily moving backward rather than forward. The Interstate Commerce Commission has recently reopened the proceedings held in January, 1923, whereby the Van Sweringens were permitted to serve as directors on the Nickel Plate, Hocking Valley and C. & O. It is evident from this step, that the old Congressional fear of "interlocking directorates," however obsolete and however inconsistent with a policy of favoring railroad consolidations, is not yet allayed. The minority C. & O. stockholders were greatly cheered over this investigation of ancient history, and the proponents of the proposed Nickel Plate merger were proportionately disappointed at the prospect of further official delay.