The Washington herald., 1909-04-24
PURCHASE EXCITES COMMENT
PennsyIvania VIII Vow Control Nor
folk and Western.

Pennsylvania VIII Now Control Nor
folk and Western.
New York. April 23-The Journal OF
Commerce and Commercial Bulletin has
This to say on the Pennsylvania absorp-
ION OF the Norfolk and Western Rail
way:
The Pennsylvania Railroad Company, II
AS learned yesterday, has repurchased &
1atrolling interest in the Norfolk and
q -estern Railway Company through the
asorption OF the sl9,0oo000 stock owned
the banking house Of Kuhn. Loeb &
D. which. It viii be remembered. bought
IS block from the Pennsylvania in Sep
zmbe-. 1906. when feeling ran high
yainst the Pennsylvania and-other pow
,-fuI corporations for various alleged
uses.
The Pennsylvania then undertook q
g. 'orough Investigation into the conduct OF
5 various departments. and officers were
e-dered 10 dispose OF whatever interests
sey held in companies served by the
nd The company itself not only sold
Norfolk and Western holdings. 5ut
~V Gil cAlliAioA rAi 4GA l4ll0-4Aa- "a AAlEccA-
axe and Ohio stock Later II also part
q with its baltimore. and Ohio holdings.
Expects NO Interference.
Al Of these stocks had been acquired
hen every important railroad system
IS anxious TO otain influence IN the
5uncHs Of small roads that could be used
feeders Under the Roosevelt regime
f-e absorption OF competing lines was
richly forbidden. but since President
aft came into Office the bars have been
2psrently let down. for during the last
ew months various deals have been
,sade involving the passing Of control
rom weak 20 strong interests
It may be added that other similar
ransactons are understood 10 be pend
1g- The Canadian Pacific, the Hill sys-
IN. the Hartman system. and the
iawley system has each been in
lie market for new roads with
1aore OF less success, so that the Penn
ylvania's action merely emphasizes the
-rend Of events under the Taft admins
ration
When Pennsylvania sold It's Norfgk
and Western holdings the shares were
selling IN the open market around 95. ana
curiOusly enough the quotation yesterday
vas within a faction OF this figure. In
The interval the low price Of 55 was
0ecorded during the panic. Neither in
1906 nor yesterday was the private price
disclosed
The newly acquired stock. added 10 the
51S.00o.. .oG Norfolk and Western already
the Pennsylvania almost % per cent. OF
Norfolk and Westerns stock. enough TO
insure absolute control. Il Is understood
that the Pennsylvania intends at some
future date TO issue bonds against its
new holdings. but no immediate financing.
il IS understood. viii be undertaken.
To Interchange Traffic.
President McCrea yesterday confirmed
the statement that the Pennsylvania had
purchased additional shares OF stock Of
the Norfolk and Western, thus bringing
the company's entire holdings I'd 10 about
81 Per cent Of the whole capital stock.
The Pennsylvania. says q Philadelphia
dispatch, having some time ago parted
with its entire interest in the Chesapeake
and Ohio and large part OF its holdings
IN the Baltimore and sOhio. and appre> |
-iating the natural advantages for the
Of traffic between the two 4
systems at Columbus, Cincinnati, and Cir, I
,iesville. 10 the West, and HaEerstoWn 4
and Norfolk. in the East. and that 4
arge proportion OF the traffic OF the Nor /
folk and Western is exchanged directly 4
With the Pennsylvania system, as Il has
continuously been for a long period. il 4
70 the Pennsylvania directorate
udiCious and expedient 10 increase its /
holdings OF the stock OF the Norfolk and 4
Western Railway Company