Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-09-17
GOSSIP OF
THE STREET

There has been n whole lot Of wild
and irresponsible talk concerning the
Reading segregation. Officials OF the
Reading Go. are the authority for the
statement there is no segregation plan,
nor is there likely to be one considered
until some policy is outlined by the
United States District Circuit Court.
The mandate Of the United States Su.
prcme Court, as n matter of fact. did
not reach the District Circuit Court, of
which Judge Burlington is the pre-
siding member until last week. His
honor is absent from town on his W.
cation and the summer recess of the
court does not terminate until the end
of this month.
According to the usual procedure,
after the court has made Il careful cx-
animation of the plandatr of the Su-
premc Court, the attorneys of the gov
ernment and Of the Reading Go. and
other corporations affected by the de :
cision, will be summoned. The court
will then suggest. or outline. pro-
cedure by which the mandate of the
higher court will be carried out. These
suggestions will furnish a nucelus for
the provisions by which the divorcing OF
the railroad and coal properties will
be accomplished. All the recent talk.
therefore. concerning the much discuss
cd segregation plan was simply con-
lecture and wholly without founda =
ton.
Under the circumstances. It is hardly
likely that any defnits infornEtion
concerning the segregation Of the
Reading properties will be obtainahlt
much before the latter part of o.
tnha
in the slightest degree. the intrinsic
value of the Reading Co. stock issues,
which are the only securities of the
Reading properties traded in on the
various stock exchanges.
The book value of the Reading Co.
$40. .NO, 900 common stock has been
figured at anywhere from 1925 to S25O
n share. The extremely valuable char
acter of the assets are widely known.
and the recent pronounced strength ol
the stock may be accepted rs dis
counting the distribution of these as
sets in some form or another.
United Railways Investment Shares
The United Railways Investment Co.
of San Francisco. shares bid fair tC
some into the limclight again. Since
, the influential New York banking in
|
affairs of the company there has been 6
distinct change in the complexion of the
entire situation. The stock, aud thos'
of the affiliated corporation. has had 1
lurid market career and probably served
to smash as many spectators in thu
market as any other stock on the list
The past history was far from whole
some, but that is all forgotten ant
wiped off the slate. The affairs of tn,
company have been thoroughly fumi
gated the last five years and it is nov
apparently standing on solid bottom
The recent revival Of speculative in
tcrest in the stock is said to be largel!
due to buying from San Francisco
This. from all accounts was inspire'
in the belief Of the ratification by tn
Public Service Commission of Calitorni
of the reorganization plan of the Unite
Railroads of San Francisco. which sys
TEN is owned by the United Railway
Investment Co. It is furthermore cx
pccted that at the November election tn
city will vote in the affirmative on tn
question of acquiring the property.
The United Railways Investment &c
has been for some years charging o
large sums annually against income &c
count for depreciation in vaNlP of II
securities in the Frisco properties. Las
year the charge was about $500. 900 o,
of it's income Of 81 $50 200. There shou
now be no longer excuse for SUE
charges. and the way should be clear'
for a compromise between the pre-
ferred and common stock of tnit'
Railways Investment Co. of the AREA
of the preferred dividend. The Ihi!i
delphia Co. stock, securing the NIT
Railways Investment Co. bonds. it
figured, has n market value many tim
in excess of the market value of Il
bonds it secures.