New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-01-29
finanrial
FINANCIAL FORECAST.

fsa h''"'' ,., movements What purpose have they
stn''" .,., discourage the security holders OF one
30 vie" =, does no, seem probable that they
Of ihe'' '' -, ,s ~ their own Pan Handle stock.
~ w have more than is necessary for whS' 'He'
H"' .,.ol" II they were trying 70 Sc" '""' eau"
ca" .,sls favor an advancing market IL is '~
Hs' ,A,. large corporation is trying 10 pro'e'' IL
SOY Nigh, otherwise pay too much Tor ia" f'"'o''
yss'crs WI ,s e 70 guard the public let us hope
gar Guardianship will also extend TO tha' po'"'"
ID" ..uo which already holds Pan Handle snS'eS'
!" ,., have not been anxious TO give the ,. (
Hse''' .,ootholsers dividends. II does seem as
,ssv Nigh, now allow them TO keep the" "''''
'''O' exclamation OF this discomhture OF the re'"''
''' ...~s,s is this They mortified 10 'eanNs '''
'''' .oul,y which overlooked by 'he'" III
U" 49,, se,-csson has escaped them ana mas "ee"
,.,o tho ownership Of a ciear-heaae' anu o''''
g." 40. Some years ago the holders OF 'he p'es'"
rS {, / shares intrusted their interests 70 'ne
,oee-s They trusted them with 'ne
Ph'""' 49,, ,acu,ation OF their property. Hav-
p7'N' ,,,s trust. It would seen as though rem
..nase-s should always speak wen OF '"e ''''
IN any even, eisnihed silence '' '"e' '''
-,nla not be unoeooH""s 10. ~,
.~css,sndns many depressing eHor'' '"' ''
,,.s ,s constantly establishing hse' at "'"'
H ~, "a The stock advancing? How are We ~
f'e' -ss,, Which announcements Will you Oct
rS''' = oec,s,s or the voceless tape7 IL mas
o. "' ,s g., ,hs country that important rail-
.,-.. from which the public might be oene
,.v, been previously denied and dehe' 's''"
- ass- public open your eyes vide INC
,r....-, divisions o. the Pennsylvania N'''"' NV
''' h. nv ~ other re than the simple ownership
.,.,v stock This IS dangerous Pos'''o" anu
-. ,,a integrity and harmony OF thar s's''"' -
- FALLEN 20 my lot 10 make So important VIE
now record. There has never oeen SUI" :"
10 tho annals Of American Railways Never
,.,,,-.s before this have the stockholders OF
' 49,. s,,ss,,v ufted into new wealth as my
-. .o-ssv will disclofe Tor the holders OF T. = =
ss l. Railway shares
- , certain individuals were the owners o.
49,. .su-oaas west q Pttsburg The Pennsylvania no.
managers OF that day proposed to those '''''
-, =. they would merge all their properties '"'o
,-.,o, and give the control Of the stock 70 ''e
-. pathway Compsny that Company would assume
o.,,ro.,o,s toward them as individual holders Of
,.o,. those Obligations were recorded II ar''''es
=, INCORPORATION making agreement pe'"ee" ''
,snis Railway Company and the indiVioua' S'''""V'1
~, r,,ss articles n incorporation were feco'ueO " Wv
..,.,, n. Ohio Indiana West Virginia and Fe'''s'
,r., ,,o,dsd that Pennsylvania should be me ho'' %
49, Do, Handle COMPANY with its head once al i'''
,. The obligations Of the Pennsylvania Railway tom
- $4,000 ~ TIA, agreement require them 10 proNioe
-, -, all improvements" by selling certain securi-
A.. ,As leaving all he ne, earnings fof the stock
holders TIA, aereenen, has been overlooked ana ignored
During recent years many millions o. dollars nave '''
.x,endea for Improvements. and the money was
,ron no, earnings and from the sale Of securities
ra violation Of this agreement has been complete me
pennsylvania Railway Company did not sell securities 10
provide those millions Now they Will be eompeeo 70 se
securities and pay those millions TO the stockholders II
rash The articles Of Incorporation did not give the
,c,ors fhs optlon 10 sell but such sale was mandatory
r. ,orss sed were as follows The directors shall cell
q, n-ov,d. fo- improvements Hereafter. II the Penn
,vivana Railway Company wishes 10 continue win I'M
movements il must sell bonds flock for cash at pai
FOR such purpose and pay all the ret earnings ''
The s,oc<hodery They sell stock for less thar
p.- because they had law passed IN Penn
svsna IN order prevent wildcat railroads that Dc
railway company oan sell stock except at par for cash
N. result Of all this will Be that the 2. C. C. 81 L.
.kbo,5.r. Will receive larger dividends than any one
,,n lire stockholders The rates OF dividend wil b
a. io7 II the Pennsylvania Railway Company doe'
n. sell bonds or sell stock par IT cannot make I'M
improvements In that even, this gigantic railway
srs,ern VIII 70 lame and magnificent Advancement
VII stop There Is modification possible Of these facs
The managers Of the Pennsylvania system are IN th'
dilemma they mus, the minority stockholders rch
or they viii block the advancement Of their system
Never before have railway stockholders held position Of
such strategic importance Such marvellous creation Of
new value would not have possible II this road hac
ssn located elsewhere than the central regions Of the
United States or the system had been any other thar
gigantic Pennsylvania. But the enbarra Of th'
Pennsylvania managers IS deeper and more feit
reaching They have broken this fundamental agreement
no, be possible the other parties 10 the con
keep broken? II the improbable should come
asou, ard the ? c c ST l. would be abl'
take heir property out 0: the Of the Pennsy
nrs Railway Company or threaten rupture OF tn
fsnnsyvana system. the few outstanding ran i1eHui
'hsres nigh; have value which the most couraseou'
Imagination csnno, measure beforehand
THIS information bewildering and the Dement'S u
ns minority nteres, amazing that would not rus
ny own mind were doing my thinking: but
an not alone Some Of the minds In the legal world
IL the railway world and the financial world are standing
" NY aide in counsel For example In iege
crcss alone eight different lawyers have invested II
ns" shares within my personal knowedse One o.
men Is the attorney OF very industrial corpora
''a another fr long time honored the judicial Sehch
sA''hsr is virtual control OF IN Important nil
Na' snt gives on, from his own brain the best ngses
WIG concsrnns railway values which come into ms
'sssson; another has accumulated large fortune b,
'''as Strategic railway values. another came from
tn''Hns city 10 ny residence Monday evening las
arranged put all his available cash into thu
s' In similar way ] have the intellectual ant
'61 Cooperation OF who be relied upon II
ga sac railway circles Before the Information