New-York tribune., 1902-08-28
RAILROAD INTERESTS.
READING AND VOTING TRUST.
DIRECTORS DECLARE sEMI-ANNUA1 DlNl-
pEND OF ! PER CENT. WHICH CON
r111-Es PRESENT MANAGEMENT.

DEND OF PER IE1INi' "EiASl 49,
TIMES PRESENT MANAGEMENT
PHILADELPHIA Aug. 27.-The directors OF the Read
ing Railway met at o'clock this afternoon ana
announced that they had declared seTni-annual
dfvtden6 Of per cent on the first preferred stock
- the cornpany payable October L This cuts the
dividend In halves and has the effect Of prolonging
the voting trust controlling the anairs OF the
coropanv for a period of two years HAD the divl-
dend been at the rate per cent the voting trust
would have been at end, under the provision
that the property shall the control of its
shareholders when dividends at the rate OF ! per
cent per annur: shall have been paid for two sue
we're eac per cent and to-day's would have com
pleted the necessary period hsd the directors de-
cIded upon per cent dividend
When the news that the Reading voting trust
had been continued reached Wall Street yesterday
there was a slight drop IN Reading stock. indi-
eating that there had been expectation Of per
cent dividend and abolition Of the trust Trading
in Reading stock has been heavy for weeks. and
Yesterday sales at the Stock Exchange amount
ed to more 100000 shares Of the common and
about $1,000 shares of the preferred. Early in the
dav Reading common stock was sold up to 70is but
it closed at 63la after going down to 6ai Reading
first preferred stock closed at S69s, after having
been as high as IS and as low as 6s1z
The opinion in Wall Street seemed to be that the
management Of the Reading company did not dare
to have the voting trust dissolved. the recent
changes in ownership Of stock might
change of control Of the company. 1t has been be-
ueved tI.at much of the recent buying of Reading
stock has been the intention Of securing con-
troll. either for the Pennsylvania interests or for
the Vanderbilts- BY continuing the voting trust
the Reading management keeps in control The
coal strike furnishes excuse for declaring a
serni-annual dividend of per cent. instead Of 2
per cent.
The voting trustees OF the Reading company are
]. Pierpont Morgan, c. S. W. Packard ami Fred
eric P. Olcott The voting trust for the company
established in 1887. when the reorganization Of
the old Philadelphia and Reading Railroad Com
he old Phila6elUhia Ar
and Iron Company was effected 1t provided that
the voting trustees should hold control stock
deposited under the reorganization plan for ive
annually should be paid on the first preferred stock
for consecutive years. If the seni-annual divi-
dend declared yesterday had been per cent the
voting trust would have expire cd automatically
The action of the directors therefore in the opin-
ion Of many Wall Street people. implies that Mr..
Morgan and the interests he represents do con-
stcer wise to surrender the control of the
ing properties. which they now possess The inter
vention of the courts may possibly be invoked to
determine the equity of the action of the Reading
directors It is pointed out. however that the
voting trust is not. OF necessity, indefinitely pro-
longed. for the trust agreement permits the voting
trustees to surrender their their discretion