Evening star., 1921-02-15
READINGS PLANS
ARE DISAPPOINTING
Stock Breaks Sharply on An
nouncement-0ther Shares
Steady-SterIing Higher.
By STUART p. WEST.

NEW YORK. February 15.-A cheer
full tone characterized the financial
markets again today although in the
stock list there was great deal OF
irregularity and plenty of evidence
Of speculative profit taking.
The advance in the foreign ex-
changes continued and this. with the
long-waited Reading segregation
plans. contributed the two main fea-
atures of interest in the business OF
the day.
The advance in sterling to the high
est levels since last spring rests on a
much more solid foundation than the
movement of year ago. The rise
last year depended wholly upon gold
transfers which. in the aggregate
pretty close to Seo,ooo.ooo. 1t was
temporary stimulus. which quickly
disappeared as soon as the shipments
were over. This years recovery has
much more promise because it is
based upon a fundamental change in the
international trade conditions the lat
est proof Of which was afforded by the
British statistics for January showing
exports of any month since the war.
Readings All Lower.
All the Reading stocks broke sharp
ly when the meaning of the plan to
separate the coal and railway prop
critics was better understood.
Instead of the handsome stock divi-
dend, which the speculative communi-
ty had been recently picturing, own
ers of the present Reading are offered
the privilege of paying 81 on each of
their shares for the stock of the coal
company. the value of which is ex-
tremely hard to determine 3 1t may
II - 49,
up on it today by disappointed spec
ulators but there was no question
about the genuineness of the chagrin
felt over the two provisions. one the
requirement that the coal companies
shall pay over $25,000,000 bonds and
$10.000,000 cash to the Reading COM
pany and the other that the latter
must fix the bondholders by paying
over to them practically all Of the
100000 cash received.
The extreme weakness in Reading
stocks had no unsettling effect. how
ever. upon the rest Of the list. The
industrials continued their advance
in the early part of the day. subse-
Quently yielding to realizing sales
which had nothing to do with the
Reading move. 2.
Reading Coal ON Curb.
The curb dealings in the subscrip-
tion rights to the new Reading Coal
Company shares fluctuated over a
wide range from 16 to 20. and then
back again well below the starting
point.
The uncertainty which these varia-
tions reflected had mainly to do with
the question Of what the Reading coal
properties would really be worth after
the coal company had paid over to tn e
Reading Company $25.O00, ,0O0 in bonds
and $10,O0O,0OO in cash
A distinctly unfavorable feature
from the standpoint of the stockhold-
ers and something which had not been
counted upon at all was the PROPOSE.
tion to pay 10 per cent premium to
holders Of the general mortgage As
in return for their releasing the coal
company from its share Of liability
under the existing. mortgage lien.
This would absorb practically all the
$10,O00.000 cash payment to be made
by the coal company to the Reading
Company for 10 per cent on the Read
ing 4s outstanding amounts to practi-
cally $9,600,000. Naturally, Reading
bonds WENT up sharply this morning,