The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-12-04
SELLS CHESAPEAKE AND OHIO
PENNSYLVANIA RAILROAD DIS
POSES or I56, 800 SHARES,

All Il Had-soId In September 4OO.OOO
n. 4 O. and 100000 Norfolk and
western. but Retains Interest I'm Conn
panIes-kuhn Loeb a. 90. Take the Lot.
The Pennsylvania Railroad announce
yesterday the sale OF its entire holdings OF
Chesapeake and Ohio stock. The pur-
chasers are Kuhn, Loeb h Co., who we're
also purchasers of the 400, 900 shares OF
Baltimore and Ohio and 100, 900 shares OF
Norfolk and Western sold by the Pennsyl-
vania early in September. In the official
announcement of the Chesapeake and Ohio
sale it is said that the sale of thiss stock il in
line with the policy adopted by the company
when it disposed of the Norfolk and Western
and Baltimore and Ohio stock.
The Pennsylvania Railroad Company held
1O1 800 shares of Chesapeake n Ohio
directly, and through the Pennsylvania
company 1000 shares and $1,000 shares
through another subsidiary. The aggre-
gate of 156 800 shares has a par value OF
SIS, $50, 900 and a market value, on an APP
praisal of 90. at which it sold yesterday, OF
50, 1878, 900. The Pennsylvania bought the
stock in 1899 let een "a and II. Assuming
that the average was 81, the transaction
olAO VIZ +" va III W. ROA ~N.hf -
elusive of interest on the investment and
dividends on the stock.
At the time that the Pennsylvania bought
its Chesapeake and Ohio about the same
amount was purchased by the Lake Shore.
The purchases were made in accordance
with the then prevalent community of in
terest policy. Since the purchase the
Chesapeake and OHIO toard has be an DOM
- l.. A.. No.. N-.i, XN,Y,- - md Damn
s~ylvania jointly.
On account, probably, Of New York Cen
trails interest in the comp any il was re-
ported Yesterday that the purchase by
Kuhn, Loeb * Co. was for account OF the
New York Central. This was denied en-
phatically by W. II. Newman, president OF
the New York Central.
According to another report the ReadlnR
will come ultimately into possession OF
the stock. This report lacks verincation;
Quite as probable, in the opinion OF well
informed railroad men, is that the stock
will he sold at the market.
|. The sale of Chesapeake and Ohio stock
differs from that of Baltimore and ONO
and Norfolk and Western, since in this case
the Pennsylvania disposes of its entire
holdings, while il has r. tlincd a 20 per oent.
interest IN the stock OF the other two COM
panies. ChesapCakc and Ohio il a COM
petitor with the Pennsylvania for but a
very small percentage of traffic.
In tho statement Of September ! the Penn
s~ylv1nia said the stocks of n two roads
then sold were acquired in an effort to do
away with secret rebates and preferences,
and this result having been accomplished
the necessity for retaining them no loncer
exitSed. In addition, sale of them diSrcsled
the charge that the company was seek
ing to control the tidCwnter b!tuminous
coal traffic and constituted a proper con-
cession to public opinion.
Attention was also called To the heavy
expenditures for improvements. especially
in connection with the Ncw York terminals.
This expenditure, which will be spread
over 1907 and 1893, was estimated ~ Sl0,-
! 600 ,O0OO. From the sale OF the Baltimore
and Ohio stock alone the Pennsylvania is
| believed 10 have realized more than this
amount, so that tho receipts from the Chesa-
peake and Ohio sale may be used for other
purpose. Since the sale of the Baltimore
and Ohio and Norfolk and Western stock
the PENNSYLVANIA has increased its dividend
rate from o 10 ! per cent.