Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-05-19
VALUE OF READING
Preferred SHARES
Diversity of Opinion as to Their
Participation In Assets
Distribution

brokers' office yesterday over the
probability Of the Reading preferred
sharing In the distribution Of the as
sets.
This broker said IL has been general
" assumed that the two issues Of pre-
fferred stock are limited in the distribu.
tion OF the assets to the par value ($50)
OF the shares. His partner. however,
is OF different opinion and says such
an assumption is not assured by any
means. He said in support Of his posi-
non that in the application to list these
stocks on the New York stock Exchange
in the year 1904 we find the following
Reading Co. has the right at any
time to redeem either or both classes
OF its preferred stocks at par In cash
II such redemption shall then be al
lowed by law. The preferred and com
mon stocks have equal voting power and
In liquidation or dissolution of the cor
poration will share equally in distribu-
tion of assets
1t was pointed out to him. however.
that in the application for listing the
voting trust certificates for the three
classes of stocks on the New York Stock
Exchange on March "a. 1897. no ref
erence is made to the participation
rights of preferred stocks in the event
Of dissolution or liquidation. This ap-
pncation however. does mention the
company's right at any time to redeem
eitber or both classes of its preferred
| stock at par in cash il allowed by law.
In reply. he said that the reason
Why the statement of these rights ap-
pears in the listing application of 1904
was because Readings charter contains
nothing on the right Of the preferred
stockhold, RS to share equally with the
common stockholders in the event of dis :
solution or liquidation. but the point
was raised some time ago. and in the
opinion of counsel. they have such right
under the laws of Pennsylvania.
There are, he continued, several fine
questions involved in regard to the
status Of the preferred stockholders
which can only be settled by the courts
! In order to provide full detailed in
/ formation for those interested in the
| Reading Co. and it's subsidiaries the
| Philadelphia Stock Exchange has issued
most exhaustive eight page circular
on the subject which can be had on
I application to any member Of the Elk =
change.
There was considerable discussion
yesterday about the conflicting reports
we are getting from Europe about con :
ditions over there. Most of it turned
upon the apparent hiatus between the
statement of Samuel NJ. Vauclain.
president of the Baldwin Locomotive
Co., and the-one made by II. p. Davi-
son. Of J. p. Morgan & Co.. chairman
of the Board of Governors of the Red
Cross Society.
Both of these men have recently re-
turned from extended visits to various
countries of Europe where they had
opportunities to observe at first hand
Mr.. Vauclain says food in Europe Is
abundant and people are well clothed
Mr.. Dawson, on the other hand, appeals
to America for $500, 200, 900 to put
these wretched millions on their feet
and enable them to sustain life.
A banker remarked that it is strange
that two such extreme views on ar
important economic subject should b,
held by two of Americas leading citi
zens. after an apparent careful survey
of conditions.
I A. II. Leach & Co. have an arrange
ment with n group of French bankers
by which they receive by cable each
day important information of a general
| uS W hoN piV
crossing in that country.
The latest cable says in reference to
the crops:
SO good is the French crop outlook
| for this year that agricultural experts
believe the wheat harvest Will come near
to meeting the nations full require
ments for the following year. This i'm
provemcnt, as compared with last year,
is due in some degree to the increased
use of motor driven farm equipment.
According to the official figures,
more than 1850 900 acres have been
sown with wheat. The. department of
agriculture estimates that this should
produce 26.OO0.O00 bushels. leaving
Last year, the home crop was so small
that $4,000, 900 bushels had to be i'm
ported"
| Comment in the financial district yes
terday over the enormous decline in Lib
erty Bonds was to the effect that it was
on account of the condition of the trans
portationJ service. which has tied up
stupendous quantities of merchandise
and therefore created n strained credit
SITUATION, compelling merchants and
manufacturers to resort to this last
refuge to obtain capital. Some believe
the crisis will soon pass, while others
think that the situation will not clear
up till the Interstate Commerce Com
mission takes some definite action as to
valuations and freight rates.
A banker said that railroal employees
should recognize the handwriting on the
wall in the fact that prices are starting
downward. Every day, he said. we see
that the wave of price reduction. begun
so auspiciously in Philadelphia, is
spreading all over the country, and. he
said, in his opinion it will shortly reach
every commodity which is not Il luxury.
\ leading bond aud investment house
ends up one Of its recent letters TO its
sales force as below:
What's the matter with America
these days?
TOO many diamonds, not enough
alarm clocks.
TOO many silk shirts, not enough of
| blue flannel