New-York tribune., 1902-02-16
PHILADELPHIA AFFAIRS.
READING RAILWAY SITUATION - AS
PHALT REORGANIZATION IN
TEREST IN MUNICIPAL ELECTIONS.

Philadelphia Feb. Il (SpeciaD.-Affairs of the
Reading Railway Company have attracted the
greatest attention OF men Of finance In this city
this week. which has been another one with a
Reading record. Although il may be possible
that. under the OF the issuance of the second
preferred stock that class OF securities cannot
be converted and retired before June. lSS II is
firmly believed that IL Is the intention of those in
control 10 convert the stock and dissolve the vOt-
ing trust. During the first hour of trading on
Thursday s0O0 of the common shares and 1000 or
the preferred changed hands the principal buyers
Of the preferred being Drexel * Co. thus con-
irming the Street belief IN the retirement at as
early a date possible of that class Of stock.
Before the anticipated retirement of this stock.
four semi-annuaI dividends Of per cent each
must have been deca ed on the first preferred
stock. The third of these has just been declared
ANY changes stock issue must first be recon-
mended by the directors and then approved by
the stockholders Therefore the board Of directors
will be unable 10 make that recommendation until
after September of this year
Although there will be meeting Of the stock
holders in October. it is asserted that under the
rules governing such meetings, no business can be
transacted then, except to receive the annual re-
port for the fiscal year ending June 81. 1902. and
that the approval of directors action in recon-
mendng the change of issue of stock cannot be
acted upon until the call for new business at the
regular annual meeting. in June following. In an
swer to an inquiry this point. high official of
the Reading company said to-day that the di-
rectors could not convert the stock without the
sanction Of the stockholders in regular meeting.
but that If nothing should interfere seriously with
the present prosperity of the company il wasalto-
gether likely that the directors would declare the
fourth dividend in September.
Like this week. the second week in February
twenty years ago a record week for Reading,
it's stock having been carried up on the Saturday
of that week to S',. the highest point which 1t had
reached subsequent to the suspension of the com
tIa Of fha aV In
control At the last board that day there was
sudden inquiry for Reading which carried the stock
mp sales Of over six thousand shares. Ii was
made the strongest stock of the week. without any
apparent reason for IT. but, Of the financial
writer's of that time put it. the ways of Reading
mysterious and few can fathom them.
But the Reading OF to-day. the creation of J.
Pierpont Morgan. is not the Reading of 1851. Its
fallings and it's risings have been without parallel
in railroad history. In war times its price fuctua-
ton from 14. In 1860 TO 5sl4 in 1856 a par OF
so In 1870 it 46s In 1871, 5ss; in 1872. 1157s.
indicating straits most dire In ISL the Company
had compromised with its creditors. conditioned on
one-half in cash and one-half in scrip, and pay
scrip until July /. 1850 Prior 10 that day il was
seen that cash payments could not be made. The
pointed. and they acted until 1883. when the road
G ns SO nS and m nne m G sh debt II
being s2S.OCoO0o. receivers were again appointed
Another reorganization plan adopted in IsSs
was created with first, second and third preference
bonds of 500 O00.N00 A. A. Mcleod became presi-
dent, and he then planned many of the great
things which have been carried in these later
days He effected the leases of Lehigh Valley and
Jersey Central, and later. that of the Boston and
Maine. to form through route 10 New-England
President Mcleod and his hackers differed as to
the feasibility of his schemes. Litigation followed
and and in 1893 receivers were again appointed These
valuable property appears to be in hands capable
of steering the craft In the steady of pros
perty
Union Traction stock took another jump this
week buying by insiders. and there seems to be
further doubt of consolidation all street rail-
way franchise interests A member of the Mack
granted franchises for elevated. underground and
surface railways, Is authority for the statement
from Sxty-thirG and Market SITS. to the Delaware
River ferries. The same man said that the prop
accepted by the Traction directors at their meet
ing Monday, and that the opposition or certain
stockhoideTs mad neen removed by amendment OF
the original proposition by which assessment on
the Traction stock will be avoided There will be
much delay IN starting the work of construction
owing 10 the uHlCu!ty or procuring material and IL
is not expected thai work which will show on the
street will be begun before late in the summer
The demand OF the receivers OF the National and
American Asphalt companies last Thursday fo:.
the designations of the officers of those companss
and of the sXty-nine operative concerns UaS Sor,oa
what In the nature OF surprise to most of those
OF the best informed that the action was tslxsn in
preparation Tor reorganization of the COMPANIES
the operation of the asphalt consoIidation i'm 1eS1
aIter an examination of the books by the Audit
were not so large 5 had been supposed and t6s
condition OF the National Asphalt COMPANY which
took over the holdings of the AsphaIt EonSnanX -
America, during the last wear will he \ srsat 5i9
appointment to the investors Final reDort viii nor
De mSde before the middle of March. but il is
ciently familiar with the affairs of the asphait
lion nv 70 ns prepsred to suggest reorganiza