Evening Star Newspaper, March 3, 1926, Page 5

TfiE EVENING: “STAR; “WASHINGTON,” D. C, WEDNESDAY, MARCH 3, 1926 i MERGER DEFEAT COST ROADS HEAVY SUM, COUNSEL ASSERTS| LEAK ON MERGER DECISION IS DENIED No Possibiity Existed That Ruling Was Wrongly An- nounced, Eastman Says. « the possibility of a “leak” wivance of issuance of its the Nickel Plate mer- v, Interstate Commerce sald today every taken to pri the deci: e crash in New Yor ending « »me solely ate order. B. Eastman said “there was no chance ery operation surround- the de was care he a Assi said the mimec i wated that on the been ¢ as a pinion 1onig al of it comn could the decislon | Men Protest 1 men con 1 in the pr | on, which is publie, when the de. ven o1 iming they r e over the hered there for nercial re that the full s not necessary 1me the in-|® of th paper com man advance of the nd told him me rst page | Will Order No Inquiry ted th: | t there was | fore the upon to. ring in in view of the TAX DELINQUENTS Must Pay to Avoid Sale of Prop-i Tuesday, of propes 15, seen | h pay- | 1y morning will be £0 many | fter | that taxes, that | a period of through the cant monthly t time they mus RAILRGAD STOCKS HIT BY AVALANCHE OF SELLING ORDERS ved from First Page.) their seats | rea- ness, vent | reading | was ks in booths the con floor and In the telephone between th various firms. tfices hundreds of custom- around the large quota- s 0 before the illu le t to watch the sres: the day's trading. Clerks Fight to Keep Up. i the « thousands of whom yurs of the led of had worked zht, toiled clearance n effort unprece- Many of the wire houses out to neigh- meals for thelr sccomplish as wlating dancing of a thousand :d like the cheeril ge foot ball g ceded the sounding was followed by b of trading, during tore at each their orders and sent pages it procession to flew through ers ved the air The s curious visi- wi y 1ce at a pli on the floor serted a, only daughter of na of Holland, will dy of international and 1w, Princess J Queen Will ake up the ronstitutic | This Wonderful Old Prescription For Rheumatism Refilled a_Million Times Prescription A-2R:1 or rheumatism was first fi 1864 and has been renew 1 time of A-2851 tal three stops rheun: lieves pain jointe. T «lat. or v. ¥ quickly re- | «Off swollen | stockholde: GIVEN WARNING | | it tinued from First Page.) age raflroad consolidation legislation. First opinion was t the Van Sweringen interests, which sponsored the Nickel Plate project, would take advantage of the loophole in the de- cision permitting them to reopen the se, and that meanwhile other con- solidation plans would await the Commission’s verdict on that appeal. What effect the decision will have on pending consolidation legislation in Congress, other than to focus atten- tion upon it, rems b The commis found seven members oppos er, one for it and three not vot- 2, approved generally of the trans- portation phase of the proposal, but «i to the financial pha of it. or would have linked up the York, o S Louis Rallroad « w Kickel Plate, with_th and Ohio, Hock- ing Valle ere Marquetto > joined mor k in ten States property value through and exceeding $1, | Question Coercion. ho dec 1t phases of the proposed 1 various roads aling with the rights of non-assent- | stockholders s 1 other | the old desiz stockholde: stock for that of th n upon the terms proposec tended that the op wre The commissio: sponsibility for establish “a and reasonable ratio of stock to enable completion of hat. bu of n held tt than be wreely 1 3 | declined to take re- | Just ' ex- | th 1e should not be expec ? continued, “to arbitr . | tion of hare | holder should rece t ut that th ome unworkable to render and S€ The not escape ! o 1 that plan was ed with the inte n of keeping control in the hands of its proponents even though t is a minority one in fact ] v nt is not in accord with sound road practice.” arding th an Short | | the t embrace the one of the g s is AD. ) mind ng rt weak with the v-| the I frained from han opinions | Right to Fix rms Upheld. ied Van | nd declared the | ent to “ay it we gen petl commission and to ir be \dcondit various groups of Y security | within the ity,” he 1 bring | 1e pub- | nsportation for its ap would certainly he » of its prope iv » indicate what v , found to he s tr the proj lic intere 1 was concerned), proval. “The into line created ns vised presumption is terms and financial structure satisfactory state, not indi proposed consolidation will proved. There are, however, left a number of s which w raised and are not passed on. Would they rise to such proportions as to block approval? < these is commt of Int the v Sweringens - York houses | attack | mont Union T compani by the Van but also that and | to a| ited, the | be ap-| are iss he allegation of a and tr vigoro throt minal touched e the and m not only personally, prosecuted for the on this one issue is it 1s to me we r-cut finding on this wsmuch as it is found ed new system would a worthy competitor of the New | York Central as well as of the Penn-| evlvania and Baltimore and Ohio sys- | tems, there is an implied failure to | connect it up with the New York 1'\""-: tral interest, but this is not clearly or affirmatively found.” Proponents of the unification, Co missloner s declared, wil be application for ¢ record very ample and uld make a cl wat the prope 120 St |ev it So the denial is based.” He added, how- ever, that it would be better, in his opinion for the commission to retain control of the matter and to “lead the vay to the realization of those things vhich we find meet the definitions of public interest set up by Congress in its declaration of a national railroad A. A. Colston, vice president and general counsel of the Nickel Plate, expressed disappointment at the de- cision, while Henry M. Anderson, chief ‘counsel for the contesting mi- nority stockholders, was jubilant. “Of course we win hands down,” he aid, “and if they ever start this over again we will be there to meet them. 5 Denial that a “leak” at the com- mission offices permitted premature news of the declsion to reach Wall street was made by George R. Mc. Ginty, secretary of the commission. Although some observers regarded the avalanche of selling during the last hour of trading on the stock axchange as traceable to the decision, the rullng as not offlclally announced here until 3:30 o'clock, after the ex- had closed. McGinty explained that the of copying the decision for dis- sution had been done behind locked doors, with clerks copying detached portions of the document so that none could know its exact contents. In- quirers were told as late as 3:20 o'clock, he added, that it was not known when the decision would be Mr. Says Leak Is Ympossible. Intimations of a possible leak also brought from Chairman Eastman the commission today the state- 1t that such an occurrence was out )f the question. He said the mimeographing of the apinion was done by different persons I loors in a way which ble for advance infor- the outside. was indicated at the commission offices that no further offlcial cogniz- mnce would be taken of rumors that 11 sStre v have gained infor- ation the ruling in an im per to way Investment Over Billion. ind M. J. Van Sweringen were estate operutors until 1916. Then wequired control of the old Nickel neipally because they needed Cleveland terminal for a rapid ansit line to their real estate hold. real they purchase excited a ripple in arts, but it was only a nce to the surging t with which the in grected the news in had r rail 1 Ohfo, the and Pere oposing to el Plate. mplated the > than 9,000 a property - were with the Nic: lation cor roadwa ) the cou tern water cities of - Minority Owners Start Fight. It ‘was almost all over before Wall agitated by the market churn- ie and Pere Marquette stock , learned that the cause lay those 1 s the somet the en plan.” There was plenty for not since the days n and Hill had financial rved the overnight scoop whole railroads. So expe- and quietly had the two un an Sweringens proceeded Street was almost com- deprived of the thrills and ex- usually attend the financial enter- York and the tide the storm averted in the forum of the metropolis broke with considerable fury when the consolidation plan was presented to the Interstate Commerce Commi: sion for approval. Groups of minority rckholders in three of the acquired roads 4 the Van Sweringen plan, root and branch. A committee | representing minority holdings in the Chesape slwught, mized charactes \rgument laid befor: the rawest proposition eve: fore the stockholders of any corpor: insistent did the me that O. P. Van Sweringen bmitted himself to a long, ham- cross-examination on the witness stand. The minority complaint was that ners of Chesapeake and Ohio ocking Valley stock would not air percentage of stock in the new corporation when their holc i were transferred. But the op- ponents of the consolidation did not stop there. They sought to prove that the Van Sweringen brothers and a small group of assoclates ‘would profit_approximately $102,000,000 by the enterprise, and much’ testimony was produced hearing on a project terminal in the Van home city of Cleveland, connecting up with certain real estate and other interests. Predicted Big Savir The reply of the Van was that no such Involved in the d pected unle: served conten ke and with a - its lea ed Ohio led the on- determination epito- attorney when he position Swerlnger Drofits as wer could be ex- blic interest. t the unified operation OUR ENTIRE BUSINESS Now Located in Our Own Rldg. 922 14th St. épi:u- Fan‘klln ik ‘ Est. 2 Formerly bsvd 9th _und ¥ and City Club, Distinctive Lamps! There's o touch of exclusive- ness added to the evident GREATER VALUE that makes this stock the most desirable for choice. See the New Boudoir Lamps, J et vith shade, 2:'.:" are seting apeciai 94-00 Joseph D. Campbell 517 10th St M Opticlans Optometrists RILIVE] —is a long time, and we don't venture to say that Colbert-laid Roofs last that long, but we do state that Colbert Roofs give ser- vice second to mnone. And no end of property owners back up that fact. 34" REPAIRS a spe- ciajty. 8 Maurice J. Colbert Heating—Plumbing—Tinning RIRIRCIR) Ave e |5621 F Street Phone Main 3016-3017 5 the project as a_whole | It was | of the flve roads, by eliminating duplication of shop and other facili- ies. would save at least $6,000,000 a year in transportation charges. The evidence showed that the con- solidation would introduce many new elements into the rallroad map of the United States, such as direct access between Norfolk and Newport News and the tip of the lower Michigan peninsular. It was declared the new system would have the shortest route between Buffalo and Chicago south ot Lake Erle, and the second shortest route between New York and Chi- cago and New York and Cleveland. By States, Michigan ranks first in mileage under the consolidation plan, with 1,787 miles of the new system within her borders. Ohio has 1442 miles of the road, Indlana, 1,236; New York, 1,027; West Virginta, 814; Virginia, 78 Pennsylvania, 2; Kentucky, 570; Illinois, 856, and New Jersey, 149. In addition, 337 miles of roadway lfe in Cahad The Important industrial centers touched by the system include New York, Newport New Norfolk, Rich- mond, Roanoke, Charleston, W. Va., Loulsville, Chicago, Peoria, St. Louls, Detroit, Cleveland, ,Buffalo, Roches- ter, Erle, Youngstown, Akron, Co- lumbus, Cincinnati, Toledo, Sandusky, Dayton, Indianapolis and Fort Wayne. The farthest west point Is St. Louls, the farthest north, Bayview, Mich., and the farthest south, Elkhorn City, Ky. CAUSES SOME OPTIMISM. Several Railroad Financlers Expect Results in Congress. YORK, March 8 (P).—Al though railrond financiers here are perturbed over the Interstate Com- merce Commission’s disapproval of the Nickel Plate merger, several see causes for optimism in it. They fell that contemplated consoli- dations affecting most of the United States are materlally set back, but the dectsion may lead to an entire clear- ing up of the situation by congres- sional action. In some quarters it is considered that only the Nickel F merger will be specifically aftected. ““There has been much feeling,” said one raflroad authorit 18 expressed quite strongly in the opinion by the commission_ that minority Interests were not receiving proper consldera tion. This very denial of the Nickel e application will probably accel erate congressional action, which will clear up the whole consolidation ques: tion.” NEW View of Sponsor. Leonor F. Loree, president of the Delaware and Hudson and Kansas Southern Railroads, who is sponsor of mergers to be built around these sys- tems, believes dectston will not affect the co tion movement "he decist have no lasting effect whatever on railroad consolida tion,” he said. “The comm:’“sfon does not deny the value of mergers, but merely the terms of this particular one. It will not discourage private initfative In merging the roads. Every decision of this I merely clea 5 the way for fut .re rs.” Many raflroad head to ex :ss an opinion per of the text. Plans for ries nd rerg ineg study Natfon-wide out for 11 b: i Some losely the sug gestions of the Interstate Commerce Commissfon, but other, including Nickel Plate, diff great sy worked sms would span_the ans now in consider- , y would be headed by the W York Central, the Pennsylvania, the Baltimore and Ohio, the Delaware and Hudson and possibly the New Haven, In the Southeast the Atlantic Coast Jine and a ited roads inter ed In a unificd system. A second group would center around the South Railw while the Illinoi Cen d Air e and th al of Georgia would constitute another group Another group would center In the Southwest with the Missouri Pacific at the head. The Southern Paclfic also has been extending its holding The St. Louis-San 3 which only a few weeks ago acquired con- trol of the Rock Island, has catlon for consolidation bes commission now, CONFE AWAITED. New Merger Plans Expected to Be Formulated Tomorrow. CLEVELAND, Ohio, March 3 (&) Formulation of any new plans here for the proposed Nickel Plate rail- road merger today awaited ghe ar. rival from Washington of Col. W. A. Colston, chief counsel of the Van Swerlngen interests. Due to arrive tomorrow, Colston pected to go immediately into conference with O, P, and M. J. Van Sweringen, the merger common, Newton D. Baker, who assisted Colston at the hearings before the Interstate Commerce Commission. Analysls of the report then is expected Is your coal supply becom- ing exhausted? Wo can change vour heating plant from coal to oll in & few hours Oil Burner Demonstration ly and every night from 6 P.M. t Dally &18 LM (extont’ Sunday) i BALLARD OIL EQUIPMENT CO. 1745 Connecticut Ave. Investigate the SUPER HEATER PERPETUAL BUILDING ASSOCIATION PAYS 5% Compounded Semi-Annually Commencing January 1, 1926 Assets Over $11,000,000 Surplus, $1,000,000 Cor. 11th & E Sts. N.W. JAMES BERRY, President JOSHUA W. CARR, Sec'y “STOP ITCHING ECZEMA Penetrating, Will Help You s 1y Never mind how often you have tried and failed, you can stop burn- ing, itching Eczema quickly by ap plying Zemo. In a_short time usually every trace of FEczema, Tet- ter, Pimples, Rash, Blackheads and similar skin diseases will be removed. For clearing the skin and making it vigorously healthy, always use Zemo, the penetrating, antiseptic liquid. It is the one dependable treatment for { skin troubles of all kinds. Ask your, druggist for a small size 60c or large bottle, §1.00, Antiseptic Zemo ' HOT FIGHT IS WAGED ON INSURANCE CODE Fire Underwriters Say Pend- ing Measure Is “Unneces- sary and Unreasonable.” The proposed new insurance code for the District of Columbia was vig- orously opposed as an unnecessary and unreasonable bill by J. H. Doyle of the National Board of Fire Under- writers, at a hearing today before the Senate District committee. Although Mr. Doyle directed most of his testimony to the effect of the DIl on the fire fnsurance companies, he asserted that the measure has only one meritorious feature, namely, that relating to life insur: . ‘The witness emp! zed that the rate-making sectton would increase the cost to the companies of dotng business and might lead to an in- crease in rates as time goes on. He declared 1t would not reduce rates on fire insurance. At the opening of the hearing to- day, E. C. Brandenburg appeared on behalf of the title companes of the District, asking that they be exclud- ed from regulation under the insur- ance code. Title Companies Considered. Senator King of Utah expresse view that title companies in swasr Ington should bhe subject to some supervision and required to be bonded. Mr. Brandenburg then stated that if some regulation of the title companies is deemed desirable, it should brought about in legislation separ from an Insurance code be ttle companies ar insurance. Thor super intendent of Insuranee, agreed with Mr. Brandenburg that the title c panies should be taken care of by separate bill. Mr I)nfi]u took fssue with man the stateflents made vesterday by witnesses who indorsed the bill, agreeing particularly with w said by Mr. Duedsberger s New York insurance department. Answer. ing @ question from the committee, Mr. Doyle said restrictions on insur. 16 in the United o too eat, that insurance is not regarded either as trade or commerce and there- fore not entitled to protection under the Constitution and that the 48 States of the Union all have different rules and regulations relating to insuranc The witnesses in support of the hill | ¢ resterd contended the new to reveal several loophol which may carry the merg over the Interstate Com mission’s rejection. Bec: commission, it is expected that it be some time before the problem ironed out and a plan of action forth coming. Through an smept the stockholders who have depo their shares with the Van Swerin committee, the merger group is em powered to substitute any plan that does not materially change the rights of the stockholders. The merger committee ed out, Is the ol or not the modified plan w stock rights. It nec y to drop “any roads to obtain an affirmative ¢ by the Interstate Commerce C sion, the stock in the line will be turn d back to the deposi it was point of wk ill alter the it “bec of th Closed Thursday! The Hecht Co. Bargain Annex, 613 will be closed all day Thursday to prepare for Friday’s Hoover Zook Sale. 2 Co. use of the lengthy report of the | m Through —at 1343 G Street NW. I’ve sold out to The Hecht The entire stock of my store, formerly 1343 G St., has been purchased and will be on sale Friday morning, 9:15, in the Bargain Annex, 613 E St. NW. Look for the final announcement with full details in Thurs- day’s Star, Times and News. Hoover Zook 613 ) The Hecht Co. . BARGAlN ANNE College Man Takes Mayor’s Office to Teach Public Duty By the Associated Press. WATERVILLE, Me., March 3.— A college professor who sought and won public office in order to fmpress upon his students the necessity of taking an interest in thelr Government will be sworn in as mayor of this city Monday. He Is Prof. Herbert C. Libby of the Colby College. “I have been trying to impress upon my students for 16 years the fmperative necessity of their taking an active interest in the affalrs of their Government,” Prof. Libby explained that T must COUNTESS MAY G0 TO1SLAND TONIGHT Officials, However, Uncertain on Point—May Remain at Hotel. By the Assoclated Press. NEW YORK, March 3.—The 10 days’ shore leave granted the Count- ess of Cathcart, in her fight to enter the United’ States, despite an order barring her for “moral turpitude,” is | up at 11 o'clock tonight. would not fincrease fire insurance! There was much doubt today, how- rates, but Mr. Doyle sought to show | ever, as to whether the night would that it would increase the cost of do- | findgthe countess on Eills Island ing business as time goes on and|again or in her suite at the Hotel might force the companies to go to [ Ambassador. the courts for higher rates. In the $500 personal bond which Senator Sackett asked the witness|she signed on her release from the if there was any other way in which |island it is declared that she must rates could be regulated than as pro- | surrender to Commissioner of Immi- posed in the pending bill. Mr. Doyle | gration Curran at the expiration of replied that it s better to let normal! her leave, “as required.” No order economic conditions control, but added | directing her to return has been fs- that if Congress feels there must be | sued as yet. Such an order, Ellis ome control it would be better to|Island officlals say, must come from regulato the companies’ profits. Washington. Senator Capper, chairman, and Sen-| Hearing on the countess’ writ of ator King both requested that Mr.|habeas corpus has been postponed Doyle file a brief setting forth his ob- | until Friday. Unless she returns to Jections in detail. Mr. Deutsberger, |the island meanwhile, Federal Attor- Who came to the hearing to support |ney Buckner doesn’t see how appli- the local insurance officlals, asked |cation for such & writ can be argued. permission to reply to any such brief | Arthur Garfleld Hays, the countess’ that may be filed. attorney, says he is desirous that MOVIE EXTRAS TO SUE . “decision ‘o preve PRODUCER FOR $1,000,000 technical decision to prevent argu- Ope Hundred Allege Serious Dam- ment on the moral turpitude issue. OFFICIALS STUDY CASE. age From Unprotected Lights in New York Studio. od Press. Labor Department May Decide Status of Countess Today. the Asso W YORK d to have ing of & men and v total their | cart, Einglishwoman, who was barred from the United States two weeks ago and later admitted on bond, came again before the Labor Department today. ~The 10-day admlssion order is- sued by Solicitor Risley comes to an end tonight and Mr. Risley and As sistant Secretary R. C. White were in conference this afternoon on the case. Mr. White said before the confer. ence he did not know what action the department would take, or whether an dr burn: ed during n pleture scene ymen will file suit compensation of counsel announced been re: 160 aski charge that while dependent producer required to work ‘orty-fourth street lights that we s the law ; y allege rst degree burns, acute and Each will aid the ret 1005 Pa. Ave. 9th for Lease With Basement Term of cing eeiling, walls, Wi years ch 1. Glass floor and muko altera 15 Best husiness hloek city. * Inquire Hotel GOR Ot st. com. in inn, SAVINGS DEPOSITS MORRIS PLAN BANK Undtr Supervision U. S. Treasury 1408 H ST. N. W, Big 5-Tube Radio cessories) to Walt Spring Hats Mauorys—Robin E St. NW, | The case of the Countess of Cath-gf D. J. KAUFMAN, . ) extension of the admission order would be granted. In the meantime attorneys for the Countess in New York are preparing a_case to come before the courts to decide whether the Countess in admitting “moral tur- pitude” admitted commission of a crime within the meaning of the United States immigration laws. The National Women's Party, which bombarded Secretary Davis with charges of “double standards” and “‘discrimination” whiie the Earl of Craven was In this country, has taken no further part in the Cathcart case. ——— W. F. ANDREWS EXPIRES AFTER LONG ILLNESS Resident of Washington Since 1886 Had Conducted Painting and Decorating Business. W. Frank Andrews, 67 years oid, who conducted a painting and decorat ing business at 1804 Fourteenth street died at his home, 3216 Nineteenth street last night, after a long illness. Born in Baltimore, Mr. Andrews was educated in that city and came to Washington in 18%6. He was @ member of the Washington Board of Trade, the Master Painiers’ Assocta tion, Sacred Heart Catholic Church and the Holy Name Soclety. He is surviv by his widow, Mrs Inez M. Andrews; two sons, Charles F. and Frank de Sales Andrews; two daughters, Miss Inez M. Andrews and Miss Agnes Andrews; a grandson. Charles F. Andrews, jr.; five sisters— Mrs. J. E. Hayes, Miss Elizabeth An drews and Miss Agnes Andrews of Baltimore, Md ter M. Gracla of the Assumption hool nvent, South Bend, Ind Sister M. Ger- trudis of St. Mary hool Convent, Austin, Tex., and o brother, Robert A. Andrews of Baltimore. Funeral servic 1 be conducted at the reside: ng at 8:30 o'clock and thence at the Shrine of the Sacred Heart Catholic Church, where mass will be solem nized at 9 o Interment will be in_Mount Olivet Cemetery © "X USED CAR rrox ‘Joseph McReynolds 14th M‘REBT AT R INC 1724 Pa. Ave. Home of the Two-Pants Suit RADIO KEY HOLDERS—NOTICE No one having called with the LUCKY KEY——we have donated the Set (with all ac- er Reed H $%:1 M)fi, Are Selling! hoods—Stetsons $3.50—$5—$6—$7—$8 Snap Brims—Curl Brims—Plain and Fancy Bands Selling Like “Sixty’ Twenty-Five Dollar L) p, Silk-Trimmed Spring TOPC MR ANTRN ARG S KHERE’S A BUY— Money.s Worth 613 E S *§ 1005P%. Ave. . 300 Pairs Five Dollar \Moc}la and Buck Gloves. . —_—— —— D. J. KAUFMAN. OATS \\;\}\\\f\n AR T XY \ New Boxy Models—Smart Spring Shades Final Reductions! 35 Overcoats, 35 2-Pants Suits, ‘'23*° 45 2-Pants Suits, *327 $55&*602-PantsSuits,*41- No Alteration Charge Deposit Accepted 319:75 $3.15 or Money Back INC 1724 Pa. Ave.