New-York tribune., 1903-01-09

1T Is Jointly Held an Pennsylvania
and Vanderbilt Interest.
THE ANTHRACITE SITUATION.

Baltimore Ian s-President Loree Of the BaIti-
more and Ohio Railroad Company officially con-
Grrned the published report OF the purchase for bis
company Of stock in the Philadelphia and Reading
Railroad. and the later reported sale OF a part or
that stock through the Pennsylvania company 10
the Vanderbilt interests. He said that the control
OF the Reading was acquired by the Pennsylvania
road, on behalf OF the Baltimore and ONO road
through Kuhn Loeb Co OF total OF 2soooo
shares this firm secured between 10000 and so
90 shares in the interest Of the Pennsylvania This
was largely preferred stock. Then the Nanderbilts
and the Baltimore and Ohio were invited to take
these purchases between them This 70 bring
the Reading into the community OF ownership
scheme originated by the Pennsylvania Railroad
and the New-York Central without conflicting with
the laws Of the State Of Pennsylvania. which pro-
hibit the Pennsylvania Railroad from owning con-
troll of competing line The Vanderbilts nonli-
mated the Lake Shore and Michigan Southern Rail-
road to take up their share of the purchase, and
the transaction involved the raising Of about Us
o00.O00- The Pennsylvania selected the Baltimore
and Ohio. and this company financed the require
nents by part OF the money derived from the
cent sale of $3.50 900 Of stock
President LOree added that the deal substantially
doubled the mileage operated under the Baltimore
and Ohio influence, as follows:
Present Baltimore and OHIO system --......--.
Mileage affected by deal Observation-Disclosures 4io5
Total $500
The management Of the Reading. President Lores
said, would continue at present
The fact OF the purchase OF control Of the Read
ing by the Pennsylvania Railroad and Vanderbilt
interests. which reported several weeks ago.
was confirmed yesterday from authoritative sources
in this city. the details Of the transaction being
practically stated by President Loree in the
foregoing dispatch That the Baltimore and Ohio
would become the dominant influence in the Read
ing was reported as long ago at the time the
former company decided upon it's latest issue oS
stock s4250o00; and part Of this issue, II said
then, would be used in acquiring interest in the
Reading.
The Reading compauy's shares are half stock.
par value $50 There 100000 shares Of the COM
mon stock. $4,000 shares Of first preferred and
$4,000 shares Of the second preferred II Is under
stood that about SIS per OF preferred stock
and between Is and 20 cent OF the common stock
have been secured: which, the classes OF the
preferred aggregate 14o,G00 shares, the amount OF
stock outstanding gives control TO the new
interests All three classes Of the stock are held IN
a voting trust composed OF J. Pisrpont Morgan. F
P OIcott and C. s w. Packard; SO that the change
Of ownership of a majority Of the total stock does
not necessarily carry the power OF changing the
management policy Of the company The trus-
tees may, however in their discretion surrender the
stock at any time aIthOug the trust normally IS 70
run until per cent dividend snail have been paid
on the first preferred stock for two consecutive
years. The first preferred paid per cent IN 1852
The Lake Shore. It IS learned, has taken over its
cent note, the opera ton involving the raising
through a syndicate Of about S25UQt,1te.
The acquisition OF the Reading carries WITH =
the control Of the Central Railroad or NeW-SersSy
the control of those two important properties IN
being lodged Jointly with the Pennsylvania and
New-York Central interests. which have been work
ing in complete accord since the perectl1s CT tue
notable community OF interest agreement N tne
summer OF 1895 The PenCsylvanla dominates tae
bturnnous coal situation in the East through is
stock holdings the Baltimore and Ohic. TIE
Chesapeake and Ohio and The Norf9lk ana ana West re
ern; and. in conjunction with the Eew-IorA zen
traI It seems likely soon 10 oe lAe con1ro.IIHS
factor also in the anthracite situation
Z has for little time been reported tpat Tue
PENNSYLVANIA was planning 10 take over the Ls~
high Valley and it has long been believed that the
Delaware and Hudson would IN good time pass %
+hz New-York Contra. The Vanderbilr-Norgan n
terests are also influential IN the LackaWanna, as
well as dominant in the Erie , ,
PhiIadeIphia Jan. s-Offcials OF the Psnnsy!-
varia Railroad Company to-day denied the truth
of the statement that the company had purchased
a large block Of Reading Railroad Company stock;
ana Subsequently sold IL to the New-fOr central
RafIroad Il was said by the Pennsylvania ot1claIs
mat the Pennsylvania Railroad Company mas 10
interest in the Reading. either directly or ma
VeCLly.