Evening star., 1933-07-06
Pennroad Paid $17O a Share
for Pittsburgh and West
Virginia Block.
KUHN, LOEB INQUIRY
WILL WIND UP TODAY
Senator'S Hear Frank E. Taplin of
Cleveland Give Details of
1929 Transaction.
By the Associated Press.


Frank E. Taplin, Cleveland capitalist,
told Senate investigators today much CT
the stock he sold to Pennroad Corpora
ton in 1929 for $170 a share cost $3.50
several years earlier.
The stock in question was 222 800
shares CT Pittsburgh & West Virginia
he sold to the Pennroad Corporation,
Pennsylvania Railroad holding company,
and had been accumulated over period
of years. Kuhn. Loeb & Co. advised
the corporation on its financing.
The Pennroad Corporation paid $685.
100000 for the stock, at the rate of $l70,
when the market price was between
sl10 and s140.
About half Of the stock, or more than
$1,000 shares, Taplin testified, was
owned by members of his family or him
self.
The entire block represented 73 per
cent of the outstanding stock Of the
Pittsburgh g. West Virginia and Taplin
said most of it was accumulated through
a syndicate he formed in 1928.
Under examination by Ferdinand
Pecora, committee counsel, the wealthy
Ohioan submitted complete list Of
owners of the shares he sold to the
Pennroad Corporation.
Some of the larger owners were:
w. L. Haelinlen (Fearon g. Co.,
10,370; r. S. McVeigh, 2l,085; North
American Coal Corporation, 3o,72o; w.
c. Atwater, 1860; A. B. Uhrig, $4,000.
Hearing Winds Up Today.
The hearing today was to wind up
the investigation of Kuhn, Loeb &, Co.,
and private banking in general until
Fall
Previous testimony said the Penn
read Corporation, holding company,
which stockholders had no voice in con-
when it was selling in the market at
from S110 to S141.
Others summoned today were H. H.
Lee, president of the Pennroad Corpora
ton, and A. j. County, vice president Of
the Pennsylvania Railroad.
Taplin paid of the loan October 16 Of
that year.
Taplin said he first discussed the
proposed sale in 1925 separately with
w. w. Atterbury, president, and Vice
President County OF the Pennsylvania
Railroad
He did not recall who initiated the
discussions, but he said he was "in-
clined to think" he did
At that time, he said, he had con-
troll of about 100000 shares under an
original syndicate agreement with the
stockholders he named previously.
1928. and was closed with the sale of
the stock.
Sold Stock to Pennroad.
Turning to the stock transaction,
Pecora asked Taplin if he sold the
stock to the Pennroad Corporation. and
the witness replied in the affirmative.
Was it your stock?"
"It was under my control. 1t was
partly mine
How much was yours?"
About one-half, meaning members
of my family and the company con-
trolled."
When did the negotiations COM
mence?"
There had been discussions for two
or three years"
Taplin organized the syndicate to get
control OF the railroad. He was pre-
Uously in the coal mining business.
The only railroad official on the list
OF stockholders, he said, was Frank
CHM, director and attorney for some of
the Van Sweringen roads.
But he is personal friend" Tap
lin explained, and it had nothing to do
with his other railroad connections"
He said he could not say offhand
what the stock cost, but offered the
syndicate books to show.
Life of the syndicate expired in July,
CONTINUED on Page 5, Column q