New-York tribune., 1902-09-05
R0UT GOULD IN READING
MORGAN AND Z. II. Z. BUY con-
TROL or ROAD.
FORTY MILLION DOLLARS SPENT FOR
STOCK THAT PAYS 40 DIVIDEND
TIE PRICE DECLINES.


The furious trading in Reading common
ana the remarka BILE advance in the price of tho
stock ceased Yesterday. and it became known in
wall Street that powerful interests had oh
tained all the shares needed for control These
interests are the Pennsylvania Railroad Com
Pany the First National Bank and J. T. Nor
gan q Co. Control was made certain by the
expenditure Of about S4oOO0Vl0 on stock that
pays no dividends and Is not expected to pay
"Eldends i'm the near future. The stock was
"n>ah'@d several points beyond Nhai many
brokers believe Is the real market value. tbs
expensive fight for control. We'll Informed hnau-
'lerS said yesterday. was forced by George y.
Gould. who Was trying 10 obtain an interest i'm
the Reading properties large enough to enable
hln 10 add the railroad to his railway system.
II Is no secret i'm Wall Street that MT. 'T"uid
and the PENNSYLVANIA interests are opposing
ea'h other constantly Their contests have
been brought into the courts at times and have
caused sudden changes in the price OF stocks
The PENNSYLVANIA interests have been opposing
vigorously Mr Gould's efforts to extend his
railway system to- Atlantic ports The Western
Union service on the PENNSYLVANIA lines was
taken away recently and the contract with
tlNdl Telegraph company was regarded as an
additional blow at Mr Gould
Months ago MIR. Could was understood to he
buying Reading stock with the plan Of get
ting control Of the property and using the rail
road as connecting link in his railway sys-
TEN. which Includes the Missouri Pacific, the
Denver and Rio Grande and the Wabash
Reading was in the hands Of p voting trust
that could not he dissolved until per cent
dividends on the first preferred stock had been
paid for two successive years Mr.. Morgan was
at the head OF the trust The competitive buy
STE 1G
stock up considerably. but the Pennsylvania
interests. the First National Bank and Mr..
Morgan were believed TO hold safe control OF the
property. Recently Mr. Gould's purchases were
believed to have ceased. and for a time Reading
stock was not particularly active on the market
The continuance of the coal strike was cal
Culated 10 depress the price Of Reading stock,
and it furnished an excuse for the action Of the
Reading directors last week i'm declaring
semi-aunual dividend of only I per cent on the
first preferred stock. II "a dividend of per
cent had been declared the voting trust would
have been dissolved. because the first semi
annual dividend was per cent and per
cent dividend was declared last wear. The aC-
ton of the directors indicated that they were
afraid the control of the road would pass from
the hands or the present management II the
property got ont of tho hands of the voting
trust. This fear. It was aseertained yester-
day. was increased a few days ago ny the as
covery that Mr.. Gould had heen taking ad-
vantage Of the depressing effect Of the coal
strike and had been buying more Reading
stock
The scramble FOR Reading stock on Tuesday
and Wednesday. when over half million
shares were sold m the stock Exchange, was
said 70 be the result Of orders given To brokers
10y the opponents OF Mr Gould 10 gather In
tho stock al the best possible figures, but 10
get IL anyhow. Mr.. Gould was suspected Of
having more than one design i'm his aCcumuia-
fion Of Reading stock. Not only could his
railway system bo extended TO tideWater by
control of the Reading but control OF the an
thracite situation would be in his hands
mighty club over the heads Of Mr.. Morgan ana
the Pennsylvania people. II was recalled that
Russell Sage Mr. Gould's friend and adviser.
had said that if the coal strike continued much
longer the stock of the coal roads would de-
cline i'm price until It could be bought by people
who were willing 10 end strikes. MI. sage sdld
he might take a hand In the buying MI.
SaEe's remarks, il declared yesterday
produced a profound impression i'm certain bank
ing offices in Wall-st, and helped 10 IN
crease the scramble for Reading stock
Reading common stock, which sold a9oVe -
on Wednesday, declined yesterday to - ana
closed at a. About ninety thousand shares
changed hands and mu n of the stock was So'd
at a bout the closing figure. Brokers stld that
most of the trading in the stock yesterday
was for profit taking, and was not cohllhud-
tion Of the competitive buying OF Iuesaay ana
Wednesday. ,
PENNSYLVANIA Railroad stock haG aho'itgL ,-o re-
ord breaking jump yesterday, going 10 10 pc
fore there was a reaction. The sales amounIed
10 81 500 shares and the stock closed dl lp''