The New York herald., 1921-10-07

the shares OF the coal company stock.
So far as the trustee under the gen.
eral consolidated mortgage is concerned,
the segregation makes no change in the
value of the property subject to the
mortgage lien.
Second-The stock OF Coke Bros.
e. Co. Inc. win remain as at present
until the maturity. in less than five years
february /. 1920 OF the collateral
trust agreement under which II Is
pledged, except that the voting power
In the meanwhile will be assigned TO
a trustee to be appointed by the United
States District Court. After that time
the stock Is to be sold. the proceeds to
go into the treasury of the Lehigh VAL
ley Railroad Company. =
Third-The stock OF the Delaware,
Susquehanna and Schuylkin Railroad
Company, owning a small branch line
in the coal regions. which is also pledged
under the collateral trust agreement,
is to be held until February 1, 1926, the
maturity date of the agreement, and in
the meanwhile application is to be made
to the Interstate Commerce Commits
sion for authority to consolidate this
line with the Lehigh Valley Railroad
Company under the provision Of the
interstate commerce act, which permits
the commission to allow consolidation
of railroads Notwithstanding the anti
trust laws. In the meanwhile, the vot-
Ing power Of this stock will be assigned
to trustee, as in the case of Coke Bros.
& Co., Inc.
Big Dividends Paid ON Coal.
At present $9,4s5.0 900 stock fs5o par
value) Of the Lehigh Valley Coal Com
pany is owned entirely by the Lehigh
valley Railroad and pledged under the
iatter's general consolidated mortgage
due May !. 2003. The coal company
produced 7.992,630 tons OF anthracite
coal In 1920 and paid the railroad com
pany dividends amounting to $12,720.-
0S9. substantial portion of which Ia
to have come out of surplus
earned in previous years.
The railroad company owns also all
the $2.9l0.i5 stock of Coke Bros & Co.,
Inc, and the $1,5o0.000 capital stock Of
the Delaware. Susquehanna and Schuyl-
kill Railroad. twenty-one mile line.
Coke Bros. & Co. produced 1884 Asa
tons Of coal in 1920 and paid the Lehigh
Valley $2.663.7ss in dividends. The
stock Of these two companies has been
pledged under the Lehigh Valley Rail-
roads collateral trust agreement.
In connection with the plan for segre-
cation e. e. Loomis, president of the
Lehigh Valley Railroad. said;
"On January 10, 1921, the boards of
directors and officers of the railroad
company and the two coal mining COM
panies were changed, eliminating all In
terlocking directors and officers. Each
company now has a separate and dis
tfnct set Of officers and board OF direc-
tors. In accordance with the require
ments Of the decision of the Supreme
Court.
In considering its stockholders the
management recognizes particular re-
sponsibility because of the fact that
they are 1922 in number. representing
an average holding of sixty-three
shares. OF its stockholders also 7o2s
are women and 6l5 are corporations OF
one character or another-banks. in.
surance companies. fiduciary concerns
charitable institutions. &C., with the
funds or interests OF thousands of per-
sons partly invested in it's stock. Also
1850 employees of the Lehigh Valley
have placed their savings IL the shares
of the company and are looking to the
management to protect them.
THE management. in seeking a solu-
ton OF this problem. has kept con-
stantly in mind the necessity of COM
plying fully with the letter and spirit
OF the decision of the Supreme Court
and at the same time protecting the
interests of its many small stockhold-