Double-Deal

Because railroads can go no further than their terminals, railroads and trucking are inextricably linked. Yet recently the Interstate Commerce Commission ordered the railroads to cease trucking deliveries in Manhattan. Last week Cleveland's smart Brothers Van Sweringen, Oris Paxton and Mantis James, finished a smart deal that will bring them double benefits, one of which is circumvention of the I. C. C.'s trucking order.

First step in last week's deal was segregation of the Van Sweringen-controlled Erie Railroad's coal properties to a new holding corporation, Pittston Co. Stock in the Pittston Co. will soon be offered to Erie stockholders, thus placing its control outside the railroad. But the Van Sweringens' promise to take up their pro rata share of stock and to underwrite any remaining shares, will assure identity of management. As one of its first moves, the new Pittston Co. proceeded to buy control of U. S. Distributing Corp., owner of Wyoming coal mines and also of the great U. S. Trucking Corp. in Manhattan (1,200 trucks, 175 dray horses), and other potent coal distribution facilities.

Most obvious of the advantages the deal will bring the Van Sweringens is that the Erie coal properties, never operating at full capacity because of lack of distribution facilities, will now have ample service. Another is that henceforth U. S. Trucking can deliver Erie shipments, for since Pittston and not the railroad controls it, the I. C. C. cannot consider itself outraged.

To Manhattan the passing of control in U. S. Distributing to western interests was a notable event. Although chairman of U. S. Distributing Corp. is George Fulmer Getz, Chicago tycoon and elephant owner, it has been always closely associated with New York business. Organizer of U. S. Trucking was the late Banker James J. Riordan. Chairman of the company in 1920-23 was Banker Riordan's great & good friend Alfred Emanuel Smith.

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