Evening star. [volume] (Washington, D.C.) 1854-1972, 1902-09-05
CONTROL OF READING
MORGAN AND THE PENNSYLVA-
MIA R.R. HAVE SECURED 1T.
Gould Had Been Trying to Obtain an
Interest to Add the Road to
His System.

From the New York Tribune Of Today.
The furious trading in Reading common
and the remarkable advance I'm the price Of
the stock ceased yesterday and II became
known in Wall street that powerful inter
ests had obtained all the shares needed fer
control. These interests are the Pennsyl-
vania Railroad Company, the First Ma
tional Bank and ]. P. Morgan & Co. Con-
troll was made certain by the expenditure
of about s40,OO0,O00 on stock that pays no
dividends and is not expected to pay divl-
dends in the near future. The stock was
advanced several points beyond what many
brokers believe is the real market value.
| This expensive fight for control. well-In-
formed financiers said yesterday, was fore
ed by George ]. Gould, who was trying to
obtain an interest in the Reading properties
large enough to enable him to add the rail-
road to his railway system.
1t is no secret in Wall street that Mr.
Gould and the PENNSYLVANIA interests are
opposing each other constantly. Their con-
tests have been brought into the courts at
times and have caused sudden changes in
the price of stocks. The Pennsylvania IN
terests have been opposing vigorously MIR.
Gould's efforts to extend his railway sys-
TEN to Atlantic ports. The Western Union
service on the Pennsylvania lines was
taken away recently and the contract with
a rival telegraph company was regarded as
an additional blow at Mr.. Gould.
Gould Buying Reading Stock.
Months ago Mr.. Gould was understood TO
be buying Reading stock, with the plan of
getting control of the property and using
the railroad as connecting link in his
railway system. which includes the Mis-
souri, Pacific, the Denver and Rio Grande
and the Wabash. Reading was in the
hands of voting trust that could not be
dissolved until 4 per cent dividends on the
nrSt preferred stock had hepp fpr -uO
successive years
Mr.. Morgan was at the head of the trust
The competitive buying of Reading stock
months ago forced the stock up consider
ably, but the Pennsylvania interests the
First National Bank and Mr. Morgan were
believed to hold safe control of the prop
erty. Recently Mr.. Gould's purchases were
believed to have ceased. and for time
Reading stock was not particularly acti,-e
on the market.
The continuance of the coal strike was
calculated to depress the price of Reading
stock, and it furnished an excuse for the
action of the Reading directors last week
IN declaring semi-anuual dividend of only
L per cent on the first preferred stock If
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 4-per-cent dividend was
declared last year. The action of the dirtc-
tors indicated that they were afraid the
hands of the present management if the
property got out of the hands of the voting
trust This fear, it was ascertained yester-
day, was increased a few DAYS ago by the
discovery that Mr.. Gould had been taking
advantage of the depressing effect of the
coal strike and had been buying more Read
ing stock.
Scramble by Opposite Sides.
The scramble for Reading stock on Tues
a1n
lion shares were sold a the stock exchange.
was said to be the result of orders given to
brokers by the opponents Of Mr. Gould to
gather in the stock at the best possible fig
ures, but to get it anyhow. MIR. Gould was
suspected of having more than one design
IN MS accumulation of Reading stock Not
only could his railway system be extended
10 tldeWater by control of the Reading but
control of the anthracite situation would
De IN his hands mighty club over the
heads of Mr. Morgan and the Pennsylvania
people. 1t was recalled that Russell Sage
Mr.. Gould's friend and adviser. had said
that II the coal strike continued much
longer the stock of the coal roads would
decline in price until it could be bought by
people who were willing to end strikes Mr.
Sage said he might take a hand I'm the buy
ing. Mr. Sages remarks it was declared
yesterday produced profound impression
IN certain banking offices in Wall street
ana helped to increase the scramble for
Reading stock
Reading common stock, which sold above
'S on Wednesday. declined yesterday to T3
ana closed at a. About $4,000 shares
changed hands, and much of the stock was
sold at about the closing figure Brokers
said that most of the trading in the stock
yesterday was for profit taking. and was
NOT continuation of the competitive buy
ing of Tuesday and Wednesday
PENNSYLVANIA railroad stock had another
ecord-breaking jump yesterday, going TO
1'o before there was reaction. The sales
n oh
closed at 167.