The Richmond Virginian. (Richmond, Va.) 1910-1920, 1912-01-16

R0Ck lsHlMD IS
Bis BOND SELLER
oEry SoAssAsee IN CASH To MAKE
IxrROyEMESrs TO THx
ROAD
TO SEGREGATE READING
PROFESSIONAL TRADERS ARE DIS
CusxING THE POSSIBILITIES
OF PLAN IN THIS
CONNECTION.
TO SEGREGAIE READING
nv THOMAS C, sHoTwEIl.


NEW YORK. Jan. i5.-Stocks
were heavy IN the early part OK to-
days session, but strong In the after
noon. 80 that more net gains than
losses were reported. Reading ana
I4ehish Valley were the leaders. Union
Pacitit and Steel were the heavy tea-
lures. but even the heavy stocks had
their own most OF the day. The
mysterious selling of Union Pacific
continued
Most important Of the news devel-
oprnee,ts of the day was the an
nouncemens that the Rock Island
Railway Company had sold s20,ooo.-
eoa bonds. and that the New York
Central had placed an order Tor rails
one depressing influence was re-
port tina. William Rockefeller was
standing out for the fun per cent
dividend rate on St Paul. and would
insist upon II being declared. al
though the other directors want a
reduction This Rockefeller report
caused ST Paul to sell within a frac-
ton IF it's low record price, hut Il
recovered and showed a net gain on
the days transactions. The market
In general acted as though II would
decline, but for some powerful in
nuence that is holding II up contrary
to the desires OF the professional
tradefs. This influence seems to be-
exerted through Lehigh Valley and
Reading
I,citgb "Rtghts' Cause Trouble.
Lehigh Valley touched new high
price for the movement. The Coal
Sales Company. stock. which Is to be
distributed by the Lehigh Valley.
was weak on the curb. An absurd
attempt Is being made by the COM
pany to prevent trading in rights"
for the new stock. The company has
issued two distinct forms of rights"
One consists OF the right to q 10
per cent. cash dividend. The other
consists OF the right to subscribe 10
stock OF the new Coal Sales Com
pany at par 10 the extent OF 10 per
cent. of ones holdings of Lehigh VAL
ley. Stockholders OF Lehigh Valley
7 have a legal right to sell these
rights" either together or separate
ly. and the directors cannot prevent
It, The New York Stock Exchange
VIII no doubt make arrangements
for such transactions in a few DAYS.
II the company does not do So
Professional traders are discussing
the possibility OF a segregation plan
IN connection with Reading Read
inEs ownership of the Jersey Central
IN Illegal and this, OF course. mus,
be segregated. But as the Reading
Railroad Company does not own the
Reading Coal and Iron Company. both
OF these being owned by the Reading
Company. which 10 purely invest
ment concern. thare is a shadow OF
legality In continued ownership by tn,
Reading Company of everything Il
nov owns except the Jersey Central
The case WAS different In the Lehisf
Valley. where the railroad compan,
owned the coal COMPANY att.
different in the Lackawanna. wher,
coal properties were owned In fe,
simple by the railroad company. TIL,
fact that Reading has mortgage.
based on its underlying properties will
make no difference for all that il own.
IN the equity In these properties any.
how. and the bondhilder does not car,
who owns the equity so long as hii
security remains the same
Ownership H1 Lost Scare.
Postmaster General Hitchcock's pro
position to have the government pur
chase the Telegraph companies had NJ
influence ON the price or Western
Union or the Mackay Company
stocks. The report of governmen
purchase has been used so many time
IN the stock market that it has los
Its force. Time WAS when "A sale I,
the government was worth as mu,.
-HA-teu pututS-111-tt-.I att, STREET..
More tobacco stocks appeared al
the curb today and with tho Issue.
that have been listed On The e.xchang,
there are all told "a issues OF stock
and bonds to be traded in by broker
in place Of the six issues commor.i,
traded In before the Supreme Cour
decision. Trust busting is goinx I.
i help the brokers If nobody else Tn,
Steel Trust will produce no fewel
Than l1y STOCKS and tndieNk hnnl iS