Pyramid; Pack

Imposing is the pyramid of railroad securities erected by Cleveland's diligent Van Sweringen brothers, Oris Paxton and Mantis James. Imposing too is the collection of many shares in many industries used by Clevelander Cyrus Stephen Eaton in his spectacular bids for leadership in industry. About the Van Sweringen pyramid last week swirled gusts of rumor. And many were the tales in Manhattan that a vast shuffle in the Eaton pack had changed his hand.

Almost out of a clear sky came the clouds that massed over the Van Sweringen pyramid. Principal Van Sweringen stocks and bonds in one day suffered the following losses, especially drastic since the market as a whole was strong:

High Low

Alleghany Corp., common.... 13 5/8 10 1/4

" " 5s, 1944 ..... 86 1/2 78

" " 5s, 1949 .....84 79 1/2

" " 5s, 1950.....84 77

Chesapeake Corp., common 47 1/4 43

" " 5s, 1947..... 99 3/4 94 1/4

Chesapeake & Ohio ......... 43 1/2 40

Pere Marquette .........118 99

Van Sweringen Corp., 6s, 1935. 85 1/4 75

Yet Clevelanders were not worried by this storm. In fact, knowing Clevelanders chuckled. Astute in many ways are the Van Sweringens. They knew their pyramid had been built quickly, they knew certain bond clauses which demand put up more securities under certain involving lower prices would attract Bears. Long before the gathered they had lined up potent On the actual day of the selling Brother Mantis James was duck-hunting and Brother Oris Paxton was in before the New England governors' railroad committee, urging that the hold over New York, New Haven & Hartford be broken. As expected the storm subsided, a subsequent rally blew the clouds away. And many a Clevelander believed that "The Vans," by buying their own securities at low levels were better off than ever.

In Mr. Eaton's pack, an ace is United Light & Power, far-flung utility holding company. What actually seems to have transpired was that the Eaton-Otis holdings in this and many another company* sold last week to Continental Shares, Inc., a holding company which Mr. Eaton controls. To accomplish this, Continental Shares Inc., had borrowed a large sum of money, some in Cleveland, more in New York. Since control of Continental Shares is firmly lodged with the Otis-Eaton interests, the deal seemed to have little actual significance except that Mr. Eaton's financial resources are ample.

*Others included: Sherwin-Williams Co., Youngstown Sheet & Tube, Cleveland Trust Co., Bank of Nova Scotia.

This file is automatically generated by a robot program, so reader's discretion is required.