Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-01-10
SALE OF THE READING
MADE arvrnA4 +onrHs AGO,
BUT JUST 1naouncED.
No Change Expected ii ofacials-Ad-
vantage for the Wander
bilt System.

- -
The recent sale Of control of the Reading
company to the Baltimore and Ohio is re-
garied az one OF the most important rail-
road consultations. 30 far as the eastern
states are concerned. that has taken place
In years. Vice President Voorhees, OF the
Reading Railway Company expects no
changes in the working ARRANGEMENTS of
the road. He said:
THE sale was made several months ago.
although not announced untfl now. OF
course. It embraces the Jersey Central and
all the mining properties. No change IL
expected to be made In the executive or
operating STATS OF the Reading in conse-
quence OF the sale nor In the MANAGEMENT.
Matters will proceed as usual. AS tie
Reading and the Baltimore and Ohio have
practically been one system for years. SO
far as trafiic was concerned. there viii be
no changes In that respect"
Pennsylvania Not interested.
The Wall Street Journal says:
THE purchase was made by the Baiti-
more and Ohio. which then offered a half
interest to the Lake Shore. The Importance
of the transaction lies in the fact that 0he
Reading was an important trunk line Ter
minal property OF especial value to both
the Baltimore and Ohio and the Vanderbilt
reads. fnasmuch. as 1t furnished the for
mer with its connection to New York and
the latter with its connection to Phiiadel-
phia. The coal interests involved were en-
tirely secondary. and. as we stated at the
time. Pennsylvania has no interest in the
matter at all.
mo doubt the Gould plan In connection
with their entry into trunk-lIne territory
has good deal to do with bringing about
the change Of control OF the Reading 1t
was always possible that the ownership of
that property might fall into hands hostile
to the general trunk-iine interests Az early
as last June we were able to state In
this paper that Reading would take a pace
In the general trlnk-Hne situation similar
to that occupied by other roads jointly
owned by the vanderbiits and the Penn
sylvania railroad interests. In this case,
however. Pennsylvania owns no Reading
and there is no connection whatever be
tween the Reading purchase and the In
crease In the authorized capital stock Of the
Pennsylvania"
The Reading Property.
The total capitalization of the Reading is
$4,000 900. divided into 2.8OO80O shares,
each of the par value Of $50 IT'S common
is now selling around "a. 1t is believed
that it was bought around 30 for this DEAL
1t is understood that the sale by the Balti-
more and Ohio to the Vanderbilt interests
was at cost. Part Of the Baltimore and
Ohio's new issue OF $42sJO0 600 Of stock was
used to make the necessary payment for
the Reading stock. Now the money de-
rived from the sale of q portion of this
stock will be used to wipe out the loans
necessary to complete the transaction.
1t Is reported that no syndicate was form
ed to carry through the deal. but that ]. p.
Morgan & Co. loaned $25, 100000 to the
Lake Shore to carry through its plans.
The Reading company is actually COM
posed OF the Reading company proper. the
Philadelphia and Reading Railway Com
N and 10 MI a-f- 49,
Coal and Iron Company. The last; annual
report OF the joint operations of the three
companies showed gross earnings OF $6l.-
1888, operating expenses of e45. 155 $40.
net earnings of 1921 .844 and a surplus of
$2,ST8,S27. The railroad mileage embraced
in the deal aggregates about 400 the 4
Reading and controlled lines amounting to
1,457 miles The Baltimore and Ohio sys-
TEN consists OF 4. 400 miles.
President Lores'si Statement.
President Loree OF 1.-THE Baltimore and
Ohio in discussing the deaf stated that ever
since the completion OF the Baltimore and
Ohio line to Philadelphia it had had close
relations with the Philadelphia and Read
ing; that those relations had become closer
and more important as time went on and
the interchange of traffic developed. The
Baltimore and Ohio had its own freight
yards and terminals on Staten Island and
In New York, and its own railroad in New
Jersey to connection at Crawford with the
Jersey Central railroad. which Is controlled
by the Reading, and that, therefore, In the
handling Of its traffic to and from this
great commercial center the Reading was
such an essential part of its through line as
to make 1t most important that the business
relations should be secured in the most sub
stantial manner
Interest of the Vanderbilts.
Mr.. Loree said. further. that as the Van
derbilt interests through their Beech Creek
and other properties have important con-
nections and traffic relations with the
Reading railroad. over which line their
traffic reaches Philadelphia, that interest
purchase. which they had accepted, and
the transaction has been completed along
these lines.
AIR. Loree was asked II the Baltimore and
Ohio Railroad Company would assume
management Of the Reading railroad, and
whether the Baltimore and Ohio would be
represented On the board Of the Reading.
He replied that no changes whatever were
contemplated: that the autonomy Of the
Reading road would be preserved and the
road would continue to be managed as at
present. AS to representation on the board.
that was a matter for future eonsidera-
ton; the Reading shares were controlled
by voting trust, under the terms Of which
the stock would be controlled for some
time.
Gould Barred From New York.
New York dispatch says: TT 10 now
practically impossible for the Gould inter-
ests to gain New York entrance for the
Wabash system. Control Of Lehtgh Valley.
while still in doubt. appears to vest in those
interested in this new coup. The only
other lines available for the Goulds would
then be Erie and New York. Ontario and
Western. The latter reaches New York
over West Shore tracks, and that road Is
part OF the Vanderbilt system. Erie is
considered impossible. as Morgan & Co.
control that. and Morgan is identified with
the Pennsyivania-Vanderb alliance"
TESTS NOT CONCLUSIVE.