The Centre reporter. [volume] (Centre Hall, Pa.) 1871-1940, 1878-04-04

The Penn'a RR. had another stormy
time Tuesday, 26, at their stockholders
meeting and election.
The stockholders manifested deeper
interest in the subject of the funding
scheme than they did in the election for
directors, but as regards the latter there
was quite an active contest carried on,
and much scratching was done. The
polls opened at 10 n. m. and closed at 9
p. N. The ticket nominated by the
stockholders committee was as follows
Thomas A. Scott, Josiah Bac N, Wistar
Morris, John NJ. Kennedy, Samuel NJ.
FELTON,, Alexander Biddle, n. Parker
Shortridge, and Henry d. Welsh. This
ticket, termed "the regular, was success
ful. The highest one on the ticket had
voted for him 479,276 shares, and the
lowest 420,049 shares. Thomas Potter
who submitted the minority report on
the funding scheme, received votes rep
resenting $3.50 shares, and a. j. Der
byshIre, who was n director last year
and whose name was taken of the ticket
by the stockholders committee was
complimented with votes representing
56,sI4 shares.
The funding plan was approved, the
vote standing thus: For the adoption OF
the resolution on the creation Of trust,
recommended in the majority report Of
the committee, 375,299 shares; for the
adoption Of the resolution on the crea-
ton Of the trust, as recommended in the
minority report Of the committee, l05,.
SS5 shares. The largest number OF
shares ever voted at any previous cleo
ton Of the company was $4,000. Last
year only los, 1000 shares were voted.
Now since Tom Scott has had it his
own way, if be will see TO it that his
company completes the Pennsvalley
road, our people will call him blessed.
/: not then there may be some expires.
sions in the opposite direction.
The majority report embodied the fol-
lowing resolution:
Resolved, That the creation Of trust
having for its object the purchase from
time TO time of the bonds and shares OF
other companies which are guaranteed
by the Pennsylvania Railroad Company
and also of the bonded debt Of the
Pennsylvania Company, be, and it is
hereby approved; AID that the incom-
ing Board of Directors be, and they are
hereby instructed and authorized TO take
such action, under the advice Of counsel
as rlay, in their judgment, be lawful,
ne Jessary, and best adapted 10 create
v .ch trust, and TO accomplish the objects
.Or which it is designed.
The trust plan, says the Post, proposes
setting aside two per cent. per annum on
the capital stock for the purchase Of the
bonds and lshares OF other companies
which are guaranteed by the Pennsyl-
vania Railroad. This will amount an
nually to 81 ,377, ,404. To put the trust
plan" in another form, the shareholders
agree to loan the Company one dollar
per share of their dividends annually,
at four per cent. interest, for the purpose
of purchasing through trust the !iablii-
ties ofthe Company. Ifthese securities
can be purchased at fifteen per cent. be-
low par, the fund. supposing the securi-
ties to yield it tseyen per cent, will be
increased $s4, 100000 in period of thirN
ty years, at cost, to the shareholders Of
$36,0O0,000 for which they would hold
scrip, bearing four per cent. interest,
payable out of the trust fund. The cap
ital represented by the guarantees OF
the railroad company amounts, accord
ing to the last annual report to $50, ,5l6,-
1914.
These are the attractive figures of the
of "the plan," but on the
other hand its opponents, held it en-
bodied the germ of mammoth stock
speculations for the benefit OfA favored
few and without profit to the sharebold-
ers. Be this as it may the plan is to be-
tried.