Hoivell Howls

Robert Beecher Howell, Senator from Nebraska, is one of the Progressives still within the Republican ranks in the Senate. He ranks next to Senator Norris in that respect. Last week, Senator Norris succeeded in having the Senate pass a resolution for an investigation by the Federal Trade Commission of the General Electric Co. (See Page 22.)

But Mr. Howell was on hand with another proposal: that a committee of Congress be authorized to investigate the proposed merger by the Van Sweringens of the Nickel Plate, Erie, Chesapeake & Ohio, Pere Marquette and Hocking Valley Railways, as well as the control of the Gulf Coast lines acquired by the Missouri Pacific.

The General Electric investigation, conducted by the Federal Trade Commission, will probably proceed quietly enough to certain business conclusions. But Mr. Howell's proposal has a much more political asspect; for it means hearings by a committee of the Senate, researches into the careers of two men, said to have had the most rapid rise in railroad management since W. A. Harriman, and charges of "Wall Street" machinations.

The Van Sweringens--Oris P. and Mantis J.--are just two young Ohio brothers, now in their middle 40's, who, a few years ago, settled in Cleveland. O. P., the elder by two years of these two quiet, clear-eyed, clear-headed young men, took an option on some pasture land three miles out beyond the farthest car line and began to subdivide it into building lots. They began to develop it and, after a time, found that they had to have transit lines, that they would have to furnish transit themselves. So they opened negotiations with the Nickel Plate Railroad, which had a right of way that they wanted, and in somewhat fabulous fashion concluded the negotiations by purchasing the whole railway. They subsequently acquired control of the Toledo, St. Louis & Western (Clover Leaf), Lake Erie & Western and a number of smaller lines, which they consolidated with the Nickel Plate.

They were able to do this, although they began with no financial backing, because of their unusual success in operating the Nickel Plate, because of which they were able to make connections with J. P. Morgan & Co. and the First National Bank of New York.

Just recently, these two boyish looking bachelors emerged with another plan. They had acquired a majority control in the stock of the Chesapeake & Ohio, Hocking Valley, Erie and Pere Marquette, which they proposed to merge with the Nickel Plate. One by one, the various boards of directors have given their consent and the only major obstacle now to be overcome is the Interstate Commerce Commission, which must also consent.

The present railroad law invites mergers for the sake of efficiency, provided that they do not destroy a reasonable competition, and the Interstate Commerce Commission will consider the proposed merger in this light.

Senator Howell, however, proposes a different procedure--that the Senate go over the head of the Commission, conduct its own investigation, find out the machinations of the "Morgan --First National Bank crowd" in this billion and a half dollar, 14,000 track-mile merger. He maintains that the Interstate Commerce Commission has shown itself "unwilling or unable to protect the public interest." So he wants the Senate to do its own delving for facts, scandalous or otherwise.