"Nickel Plate" Merger

Merging railroad systems is easier discussed than accomplished. Last week the new "Nickel Plate" merger provided the main topic of conversation in Wall Street, as well as a large part of the speculative security trading occurring there.

O. P. and M. J. Van Sweringen spent a busy week. Between conferences with G. F. Baker over the acquisition of the Erie, and conferences with J. & W. Seligman & Co., bankers for the Pere Marquette Railway, with regard to taking over that system also, the Cleveland brothers had their hands completely full. Apparently the horse-trading" stage of the negotiations has been reached and passed. If the terms are right, the creation of a consolidated "Nickel Plate" system out of the original New York, Chicago & St. Louis, the Erie, the C. & O., and the Pere Marquette offers very distinct advantages to the latter three roads as well as to the first-named line. The U. S. is coming into a tremendous railway-merger period--is in fact already in it. Little roads are bound to be swallowed by someone who will not bite too hard. On the other hand, the trunk-line roads must look to their laurels, too. Nevertheless, railroad merging is a complicated business, full of legal and economic difficulties, easily stalled by the clash of personalities or the desire to hold out for better terms. Yet the present lenient attitude of the Administration and the current ease in the money market are too favorable to permit undue delay in needless negotiations. Evidently the railroads are earnestly desirous of finishing their mergers while the sun still shines.