| Show fINAN FINANCE f PHASE I. I C. C C. C Rejection of Nickel Nick- Nick u gel el l Plate Consolidation Based on Stock Rights T J March 3 AP APh AP- AP h the the proposed Nickel Plate rail rall- r I a a. a merger rejected by the inter- inter commission on today was concerned with the ti teet et the decision might ha have e on t Other ther ler proposed voluntary mergers and the administrations administration's plan to en- en urage railroad consolidation f rough tough legislation opinion was that the Van en interests which spon- spon the Nickel Plate project take ad advantage vantage of ot the loop- loop olIn the decision permitting them the case and that mean- mean d other consolidation plans td ld await the commissions commission's slon's veron veron veron ver- ver on that appeal What effect th decision will have on pending consolidation agitation in congress RJ er er than to focus attention upon U 5 F. F to be seen COVERED TEN STATES u The 11 commissions commission's ruling which found seven members opposed to le merger one for it and three not approved generally of ot the transportation phase of ot the proposal proposal pro pro- but objected to the financial phases of ot it The merger would have linked up the New York Chicago Chicago Chi Chi- cago St St. Louis Railroad company or new Nickel Plate with the C Chesapeake Ohio Hocking ValleY Valley Valley Val Val- ley Erie Erle and Pere Marquette railroads railroads railroads rail rail- roads It would have Joined more than miles of ot track in ten I Ivalue states and Canada with a property value exceeding The decision held that phases of ot the proposed leases of ot the various roads dealing with the rights of non non stockholders of ot the lines other than the old Nickel NickelPlate NickelPlate NickelPlate Plate appeared to be designed to coerce all the stockholders Into ex exchanging exchanging exchanging ex- ex changing their stock for that of ot the new company upon the terms proposed pro pro- posed It contended that the op options options options op- op given these stockholders are largely illusory BURDEN PLACED The commission declined to take responsibility for establishing a ajust ajust 3 just and reasonable ratio of ot stock exchange to enable completion of ot the consolidation declaring that burden rested upon the applicants We e should not be expected the decision continued to arbitrate to the fraction of ot a share Just what each stockholder should receive and it pointed out that the law would probably become unworkable If It the commission sought to render such decisions In this and subsequent subsequent subsequent quent quent cases The commission declared It could not escape the conclusion that the plan was waa arranged with the Intention intention tion of ot keeping control In the hands of Its proponents even though their interest is a minority one in fact tact Such an arrangement is not In accord accord accord ac ac- ac- ac cord with sound railroad practice LEWIS DISSENTS Commissioner Lewis Lewla In a dissentIng dissenting dissent dissent- Ing opinion held that the commission commis- commis slon sion was competent to establish fc t I. tjust Just and reasonable settlement settlement nt be between between between be- be tween the stockholders and he urged the commissioners to indicate how the merger project should be revised so as to receive approval A A. A A. A Colston vice president and general counsel of the Nickel Plate expressed disappointment at the de decision decision decision de- de while Henry M. M Anderson chief counsel for tor the contesting i minority stockholders was Jubilant Of course we win hands down he said and If they ever start this over again we will be there to meet them |
