MOP's Future

Last week in one of the upstairs dining rooms of the 75-year-old Down Town Association on Manhattan's narrow Pine Street occurred a unique powwow of some 50 persons interested in the future of a debt-ridden, six hundred million dollar railroad system.

One fifth of all U. S. railroad mileage is in the hands of the courts, and nearly one-third of that stricken mileage is accounted for by Missouri Pacific Railroad, biggest province in the Van Sweringen empire. Missouri Pacific is also RFC's largest creditor, owing that Government agency $23,000,000. RF Chairman Jesse Jones lately had Oris Paxton Van Sweringen, elder and wiser of Cleveland's bachelor brothers of railroading, on the carpet in his Washington office, trying to find out when their great Western carrier would be reorganized. Last week's meeting at the Down Town Association was called by MOP's trustees. Mr. Jones and Mr. Van Sweringen were the most important guests at the luncheon that led off the three-hour session.

Present for MOP's oldtime bankers was Partner George W. Bovenizer of Kuhn, Loeb & Co. For MOP's present bankers there was Partner S. Parker Gilbert of the House of Morgan. Earle Bailie spoke for J. & W. Seligman & Co., De Witt Millhauser for Speyer & Co. Jesse Jones brought his financial adviser, Adolph Augustus Berle Jr., and his chief railroad examiner, John W. Barriger 3rd. Both the Interstate Commerce Commission and Federal Transportation Coordinator Eastman sent representatives. The bondholders sent potent members of protective committees.

One bondholder tried to appear in person, only to be politely turned away at the door. Another uninvited guest appeared but he was allowed in. He was Arthur Curtiss James, largest individual owner of railroad stocks in the U. S. Chairman of Western Pacific, dapper, bearded Mr. James has long been trying to merge his carrier with MOP.

Jesse Jones buttonholed Mr. Van Sweringen in the lobby for a heart-to-heart. The trustees insisted that some reorganization plan be presented. The protective committees insisted that this was no time to reorganize. It was announced that further powwows would be held. After what he called "about the dullest affair" he had attended in a long time, Jesse Jones went back to Washington to complain: "No one had a plan."

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