Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-12-04
PENNsY SELLS C. AND o.
Kuhn, Loeb & Co. Take 156, 800
Shares Held By It.

NEW YORK, December At was an
nounced yesterday that the Pennsylvania
| railroad had sold to Kuhn, Loeb & Co.
10000 shares Of the Chesapeake and Ohio
common stock, which comprised the entire
, holdings of this stock by the Pennsylvania
and affiliated lines. The Pennsylvania rail-
| road held 101 800 shares Of Chesapeake and
Ohio and the Pennsylvania Company 10000
shares. the par value of these holdings be-
ing $14. 10000. Total holdings of the Penn
sylvania Railroad Company and it's affil-
lated lines had a par value of SIS, $780, 900,
| the Northern Central owning 5000 shares.
In the official statement made by the
company it is pointed out that the sale of
the Chesapeake and Ohio stock is in line
with the policy adopted by the Pennsylva-
MIA when it disposed of its holdings of Nor
folk and Western and Baltimore and Ohio
several months ago. At that time it was
generally accepted as q fact that the Penn
sylvania had taken the step with two ends
In view. One was to avoid any federal suit
that might be instituted owing to the own
ership by the system of parallel and COM
petlng lines, and the other was that by the
sale of majority control of such lines the
Pennsylvania was enabled to raise funds
greatly needed for financing it's require
| ments.
The Chesapeake and Ohio enters the
category of parallel and competing lines
| with the Pennsylvania system, as do the
Baltimore and Ohio and Norfolk and West
ern All are carriers of coal from prac-
tlcdlly the same coal neldS.
Jointly with the Vanderbilt lines the
pennsylvania owned a majority of the stock
| OF the three roads. These stocks were orig
inally acquired under the community of in
terest plan, which was adopted to end the
rate-cutting and competition, which were
| reaching dangerous stage.
An impression appeared to prevail in
Wall street today that the Pennsylvania
holdings of Chesapeake and Ohio would III
| tlmately be sold to the Big Four, giving
the latter road complete control of the
property, and that the two lines would
, practically become merged.
In well-informed quarters it was denied
that any such plan was being thought of.
Attention was called to the fact that the
Pennsylvania would not venture to place
absolute control of the Chesapeake and
Ohio in the hands of its powerful rival
Inc Vanderbilt interests are already to the
north of the Pennsylvania system and, with
| the possession of the Chesapeake and Ohio,
they would occupy commanding position
to the south of the system. While absolute
harmony now exists between the Wander
bits and Pennsylvania interests, should
there be a severance of the good relations
at any time the invasion of it's field by the
Vanderbilts would be a decided handicap to
the Pennsylvania.
Moreover, it is pointed out that the Bal
| timore and Ohio and Norfolk and Western
stocks of the Pennsylvania were not sold
to the Vanderbilt interests.
With the sale of its Chesapeake and Ohio
holdings the Pennsylvania has been ena-
bed In the last few months to dispose of
stocks with par value of ST. $50 600 The
prices paid for these securities have never
been divulged. 1t is regarded as quite in
the line of proba bility that a new financial
plan will soon be brought out for the Ches-
apeake and Ohio, which has exhausted its
present power to issue additional bonds. ex-
cept for doube-track.ng purposes, so that
new authorization of bonds will be required.