Evening journal., 1910-01-10
MAKE OFFER FOR
RAILROAD STOCK
Committee Recommends Sale
Of Minority Holdings Of
Delaware Railroad Co.

Directors OF the Delaware Railroad
Company at a meeting in Philadelphia
today are considering the recommen-
dation of a committee Of the company
directors that the minority stockholders
OF the company be- given q stock diu-
dend Of 10 per cent. and "a cash divi-
dend Of 20 per cent for their holdings
OF S1.342750 Of the S2.9S7.225 capital Of
the company. Recommendation OF set
tlement on this basis Is made by Otho
Nowland, Of this city. Charles Fearon,
OF Philadelphia and Charles j. Craven,
of Philadelphia, a committee represent
ing the minority stockholders. II be-
ing understood that the minority stock
holders are satisfied with the recon-
mendation. Following the meeting Of
the company directors today, the out
come of which could not be learned
here early this afternoon stockholders
Of the company will meet at Dover
Immediately prior to the annual meet
ing OF the company there on Thursday
to consider the recommendation them
selves.
Concerning the activities Of the
stockholders committee the following
statement has been printed.
Downing 81. .644,i as Of the S2.9S7,225 capi-
tai stock Of the Delaware railroad. the
Philadelphia, Baltimore and Washington
railroad itself owned by the Pennsylvania
railroad, also holds and operates the
property under a thirty years lease. made
in 1897 Its latest report shows an ex-
traordlnary expenditure fund OF $685.
900 and a surplus OF 1851, 900 in profits and
loss
Last year the Delaware railroad earn
ed some $4,000 over and above all
charges and the s per cent dividend on
its stock. For some time minority stock
holders have been urgent for greater
return. asserting that in spite of the
various funds set up out Of earnings
at the instance Of the Pennsylvania man
agement the company could we'll afford
to do better by its shareholders
Finally this feeling among minority
stockholders crystalized into a demand
that the Delaware Railroad Company
should capitalize the large amount or
earnings. which. over a period Of years
have been put hack into the property.
by making a 100 per cent stock dividend.
The Pennsylvania railroad management
took the usual method Of referring the
proposition 10 a committee. and this COM
mittee promptly began to hibernate.
''This did not comport with the notions
Of some minority shareholders OF the
Delaware railroad, and with the annual
meeting or that company at hand they
began TO stir about. Last Wednesday a
conference was held at Broad Street Sta
ton. the shareholders being represented
by Charles Pearson as one. For the 9th.
or side there were present President Nc.
Crea and Second Vice-President Rea. Of
the Pennsylvania. and Captain John p
Green. president OF the Delaware railroad
THAT conference bore fruit It brought
forth a very favorable compromise prop
osition from the controlling interest. This
is that the Delaware Railroad Company
shall make special stock and cash divi
dends 20 its shareholders aggregating 9
per cent. OF which It is understood z
per cent. will be stock and 20 per cent
cash. Following this a new lease viii
be made 70 the Philadelphia, Baltimor,
and Washington Railroad Company or
the basis Of an s per cent. guarantee,
dividend on the enlarged capital stool
OF the Delaware Railroad Company
"rhis proposition was made subject 4
approval by the board OF directors o
the Delaware railroad, at a meeting to
at the annual meeting, which will be he'll
next Thursday. Doubtless the settlemen
will go through. OF course, the lion
share Of the special dividends and Of tn
subsequent guaranteed rental will turi
over to the Philadelphia Baltimore an
Washington railroad. as owner Of Sc pc
cent. OF the Delaware railroad stock. Blu
the minority shareholders come in 70
a. Al. NJ
Delaware Railroad stock was quotel
at from ss5 to $50 TODAY. a slight ad
'yanea