Lancaster daily intelligencer. [volume] (Lancaster, Pa.) 1864-1928, 1885-03-19
0be fanfaster 3ntellige,,fer
LANCASTER. MARCH 10. 1855.
stockholders on the warpath.

holders of the Central Transportation COM
pany at Philadelphia yesterday. 1t was
quite an eye-opener to the gentlemen
managing corporations, who are used to
fixing up their plans in private to suit
themselves and then presenting them to
their stockholders in meeting assembled for
their ratification. They are accustomed
to have their little arrangements go
through with ease and have learned to
despise the puny efforts of chronic objec-
tors to give them trouble. Mr.. Lock
wood, who figures as one of these
annually in the Pennsylvania rail-
road meetings, was on hand in the
Central Transport alton circus, and for the
first time in his life, as his friend Walters
sympathizingly said to him, he found him
self the mover of motion unanimously
adopted.
The difference between the stockholders
meeting and the ordinary affair was that
this one was funeral and was unfeelingly
advertised as such by the imprudent officers
of the company, who had yet to learn that
while stockholders will stand any amount
of shenanagan," when they are accorded
a decent dividend, they are inclined to kick
very hard when they are not; and when
it was calmly proposed to the Central
Transportation company stockholders by
their officers, who were to be well cared
for themselves under the scheme, that they
should lease their cars and privileges TO the
Pullman car company for IA three per cent.
dividend instead of the twelve per cent.
they are now enjoying, the stockholders
kicked, and kicked hard they kicked
with all the liveliness and vigor of three
year-old mule and the officers of their
company were bruised all over; and the
Pullman car people got hurt, and the Penn.
sylvania railroad folks are found to-day
feeling their muscles to see whether they
are not sore. .... ..Hf v.'... 01
You see this Central Transportation
company is Pennsylvania railroad legacy
to the dear people. Years ago it was
started as Pennsylvania side show to give
its three officials nice chance TO make q
pretty penny off of the sleeping car service
of the Pennsylvania railroad. The
Central was started at a capital OF
81 200 900 and afterwards another
million of water was added so that ths
capital stands now at 2,2OO,OOO in "A ,OOt
shares of $50 each. The assets of the com
pany are 1l9 sleeping and drawing room
cars, worth say, $4,000 each, or at forced
sale perhaps only half Of it, while they rep
resent in the stock value of $4,000 each
The company has in the treasury in United
States bonds $3.50, eco, being the accumula.
tion of four per cent. of the twelve per cent
rentals, reserved to stand for the deprecia.
ton in the stock. .. .... ..
In its early days the Central stock
doomed. Many of the several thousand
shares held in Lancaster county were
bought above par, some as high as sixty
five. 1t is needless 10 say that when the
stock fioated to these figures the insiders
got out. They took the cream and left the
blue skim milk to the innocent people who
thought that twelve per cent. divi.
dend would last but who are dis
gusted to-day to find it collapse to three
with no apparent cause. a..
The company has all the substance it ever
had. Its car depreciation is offset by the
s65O,O0O in the treasury; which, by the
way, the Pullman people calmly propose to
take in exchange for their promise Of a
three per cent. dividend without guarantee.
The real value of the Central is in its con.
nection with the Pennsylvania railroad
system. If it can maintain that, it can
maintain its stock at par. If it is thrown
out its assets are worth probably $50 per
share. .. ....
1t seems, however, to have the whiphand
of the situation. The Pennsylvania rail-
road, for many reasons, is likely to handle
it gingerly and touch it with care. The
fighting outbreak Of its stockholders is
worth much to Their. stock, and if they
carry Oh the war courageously it will see
par quickly.