The Current Situation

The attention of the business community was shifted, last week, to the vast mergers and changes of ownership now occurring in the business field.

In the railroad domain, the Van Sweringens advanced nearer the reali- zation of the Greater Nickel Plate System (TIME, July 7, Aug. 11, 18. Apr. 6) by securing assent to their leasing terms for the Chesapeake & Ohio by a majority of the latter's stockholders. Wilson & Co. (TIME, Sept. 8) and the St. Paul Railroad (TIME, Mar. 23, 30) are being cut down and revamped, preparatory to setting them up in business again on their own feet.

The sensational purchase of the Dodge Brothers Automobile Co. by leading investment bankers has stimulated interest in motor shares and af- fairs both, while the acquisition of Pan American Petroleum by Standard of Indiana has had a similar result in the oil business.

Periods of cheap money are usually accompanied by mergers and changes in corporate ownership. The basic reason for this is the readiness of the public to purchase securities at such times, plus the relatively high prices reached by securities when interest rates are low. The U. S. is apparently moving into another such merger period as 1900-06, except that today enthusiasm is more tempered with wisdom of ex- perience. But the figures are larger, except for the mammoth Steel Corporation merger of 1901. There are still few other billion-dollar corporations, yet in the last few years a large number have crept up to within striking distance of the billion-dollar class.