The times., 1901-06-10


bull market The summer decline has
set in.
The right of the Southern Railway to
redeem it's preferred shares, says the
Evening Post" of which 100000 is
now outstanding. has been questioned.
The provisions OF the reorganlZa tloIl, lLe
charter granted by the State Of Virginia,
and Subsequent legislative acts bearing
on the question are subject 10 several IN
Expectations II Is practically admitted
that the compauys rights 70 call the stock
are open TO some doubt, if that action is
decided upon, and il is likely that the
courts viii be appealed TO in some form,
in order that competent decision on the
matter may be arrived at. and 10 clear
up the several points whether the pre-
ferred shares may be redeemed as char
ser right Of the company; and whether IL
can be enforced; whether such powers as
exist entitIe the directors 10 redeem the
shares, or merely to purchase them and
under what conditions the night can be
exercised"
In Summarizing the position Of the pre-
ferred shares, the Financial Chronicle
gives the following as an authoritative
statement; The original plan of reor-
ganization. dated December l. 1894, re-
served no right for redemption Of the
preferred stock. but the act Of February
~ Is94. Of the Virginia Legislature pro-
Vidcd that the new company should file
plan Of organization 70 be adopted by the
purchasers. and in section authorized
the increase or decrease of any class of
stock as should be provided for IN re0r-
ganizaticu, or with approval Of a majority
in amount of the stockholders given at
q meeting IN issuing certificates for pre-
ferred and common stock, nothing was
said in either class OF certificates respect
ing the right to redeem the preferred
"On October IS. 1891 the purchasing
committee and the voting trustees entered
into the agreement under which all Of
the present voting trust certificates were
issued and outstanding. Article Of this
agreement provides that the preferred
stock is subject TO the exercise at any
time by the Southern Railway Company
OF any charter right to redeem such
stock IN cash at par In December, 1884,,
the railway company filed In the office
Of the Secretary Of the Commonwealth OF
Virginia. at Richmond, the plan Of or
ganizauJn, which reserved any and all
right 70 redeem and purchase al par any
and N preferred stock OF any kind class
or grade thereof and this provision of
the certificate was especially recited and
recognized by the preamble Of the act of
the Legislature Of Virginia approved
January ., 1906"
The following table gives a comparative
statement Of bank holdings for two
weeks:
June 8 Changes.
loans .Sss7 5g9. 100 Inc. -.S2l 2sl 100
Specie -.....-.-...-- l5J,DZ9, 100 Dec. 2lG1. 300
Legal tenders.------. T7,34l so Dec. s2I 100
Deposits ---.-...... g72 so Inc. - 20 600
Circulation -......... S0,933,40o Dec. 100, 800
The following shows the relation be-
tween the total reserve and the total de-
posits:
June 6 Changes
Specie Sis, ,029, 100 Dec. s. lGO 800
Legal tencers-.....-. a .38l, 800 Dee. s2l, 100
Total cash $3.50 81, ,21o Dec. g., ,ssI, 400
Required against d.
posts .......-..-.. a4s,oas,7Oo Inc. 4.ssol5s
Reserve -.......... sIS.S4 500 Dec. s., ,giI $50
The increase in gross railway earnings
curing the past six months is shown in