Word: sweringen
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Across her block passed control of the $3,000,000,000 Van Sweringen rail and real estate empire, put up for sale by J. P. Morgan & Co. and a group of banks that held as collateral for some $50,000,000 of past-due notes practically all the securities the two Cleveland bachelors ever owned...
Much as Wall Street enjoyed speculating about possible buyers, the final answer probably lay in a simple statement that emanated from Cleveland's Terminal Tower. It read: "Messrs. O. P. and M. J. Van Sweringen and their associates have completed arrangements to bid for the collateral at the sale and have also arranged for new capital to carry on the enterprises...
...Their "personal basket," Vaness Co., is still supposed to yield them $250,000 annually. (Alleghany is their "public basket.") During the past few years they have staved off disaster through a series of heroic financial efforts, most important of which were voluntary adjustments in publicly-owned issues of Van Sweringen Corp. and Alleghany that were about to default. The Morgan loan was obtained five years ago largely to pay off nearly $20,000,000 owing to the brokerage firm of Paine, Webber & Co. and to purchase Government securities to bolster the shrinking collateral behind Alleghany debentures...
Despite the staggering declines in Van Sweringen securities, the two bachelors of railroading have kept their old friends. Names of the "associates" who will furnish them funds remained a profound secret but one thing was certain: J. P. Morgan is not financing the Van Sweringen comeback...
...Missouri Pacific reorganization Morgan had to defend the interests of bondholders while it was directly interested in the common stock through the Alleghany shares reposing in its vaults?an embarrassing position for which it has been bitterly criticized. To plunge deeper into the Van Sweringen rehabilitation would merely multiply the sources of embarrassment. Thus the Brothers Van Sweringen turn back to the Midwest for their bankers & backers...