Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-04-29
READING DECREE
OF DISSOLUTION
Considerable Diversity Of Opjn-
ion When the Courts Order
Is Effective

When did the decree Of dissolution Of
the Reading Company take effect?
That is a question which was brought
up in the financial district by the sen =
ior member of a well known banking
aud brokerage concern. IL was argued
that IL it became effective the moment
it was announced by the Supreme Court,
IL raises a very interesting point. This
banker said that the preferred stock
provisions Of the original agreement
provide:
The Reading Company reserves the
right to redeem at any time either or
both classes of it's preferred stock AT
par in cash IL allowed by law. The
preferred and common stocks having
equal voting power ard Ii liquidation
or dissolution of the corporation will
share equally in pro rata distribution
Of the assets.
| IT, it was argued. the decree of dis
solution took effect Immediately and
not at some future period. it would be
evident that the Reading Company had
not heretofore during it's existence exer
cised its right to redeem either or both
classes of its preferred stocks in cash
that now the holders of these stock,
can step in and demand their pro rata
share of the company's assetsN
|
IL could not be said that optimism
was at premium in the financial dis
trict yesterday. There was nothing II
the trend of the stock market to create
| ,,,,,;t o,thar Thnrp EnpmpH n
be nothing new to talk about amonl
bankers or brokers, so that converse
ton drifted as rule to rehash o
what has been in the air for several day
past.
There were some brokers who believed
there might be some trouble in th
ranks of labor on Saturday, May !, bu
majority were inclined to think tha
recent strikes. which have proved abor
tive from labor's standpoint. hav
cooled the ardor of the radical clemen
and strengthened the hold Of the con
servatives, and for that reason the!
don't anticipate any trouble.
In the meantime, they concede tn
possibility of trouble will make for
declining market till the danger is past
There are almost as many opinion
as to how the segregation of the Read
ing and affiliated properties will b
brought about, and about asmany con
slider it n simple matter as those VIII
maintain it is exceedingly complicated
One of the latter said that such de
yelopment has been looked for for man
years past and it would be very strapg
il the men composing the boards of di
rectors had not anticipated what is t
be done and laid their lines accordingly
He said, in his opinion, any statement
by outsiders as to what is, and what
not going to be done is pure guesswork
and until the plans are announced at
tempts to unravel the riddle is vast
of time.
Speaking of other roads whose COZ
properties are likely to be segregate
following the Supreme Court decision
notably the Pittsburgh and West Nir
ginia, he said as far as he could see I'll
cases were not at all parallel to ii
Reading and that that company wouI
not be called upon to segregate unle'
! it would be done voluntarily.
Bond houses have been complainir
recently of a general dullness. Hous'
interested in two new issues Ofert
Yesterday said that they had a numb'
| ~
/ Of sales and several inquiries about the
during the forenoon.
The bond situation may be summt
up by saying that, outside demar
during the past few days for railroa
bonds which are being sold on a 8 p'
cent basis, the market is dull. Lift
activity is expected till about the midd
of May in many quarters.
The manager of large bond and II
vestment house said that there are sti
many undigcsted remnants of isSu
hanging over. lie believed that Il
prominence being given to the Rcadir
dissolution will have favorable cf'r
/ on railroad bonds in general by callil
attention to that class of securities.
A partner Of an old established hOu'
remarked that it is nearly time thu
something should be done for man
public service corporations, especial
fractions. He meant remedial legiS
lation, as he maintains some of the
are in a bad condition and need {
much sympathy and assistance as II
railrods. a