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EVENED UBETO Q2EDaEItHIirAI)EfiiHIA TUESDAY, fttti ' ST, 32?
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READ NG OPERATION
NOT IT BY RULING
Business of All Companies Af
. feotodto Continue Unchanged,
Secretary Hare Deolares
STOCK VALUES UNAFFECTED
Jay V. Flnre. secretary of the Thiln
tlelphla nml Rending ltnilwny. today
wild thnt thp ruling of the Supreme
Court, ordering the redistribution of
the stocks nml bonds of the Heading Co.
nnd its affiliated companies, would not
affect the business operation of nny of
the companies ns Individual"".
Sir. Hare does not believe that the
separation of the companies will affect
the value or have any noticeable effect
upon stocks.
"Of course, the decUion of the t'nited
States Supremo Court is final, " Mr.
Horo said. "The plan of action of the
company In complying with this ruling
cannot bo determined until the lawyers
of tho companies and the government
iret together and go over the opinion in
detail. They will then decide upon u
method of compliance that w 111 bo satis
factory to the Supreme Court
"The Individual companies will go on
as usual. Stocks will be placed upon
ino open mniKci and bought up by in
dividual financiers. I don't believe the
ruling will have any particular effect
upon securities. You can't account for
the activity In stocks. They go up and
down for reasons of their own.
"I do not seo why the ruling should
affect rates. Other companies nho have
the same affiliated iuterests. like the
Lehigh, will bo affected the same as the
Reading by this decision. Whatever the
situation is, it will bo tho same for one
as It Is for the. other. So far as creat
ing new lines running into the legions
affected, this would be n very expen
sive undertaking, and hardly likely."
Prosecutions Not Feared
Mr. Hare said there was small pos
ilblllty of prosecutions that might fol
low on charges of violations of the anti
trust laws.
Agnew T. Dice, president of the
Reading, does not believe the officers of
the companies will be prosecuted.
"If there are rumors afloat in Wash
ington that the officers of the Philadel
phia and Reading Railway and underly
ing companies nre to be prosecuted
criminally I do not believe them," said
Mr. Dice.
"I have heard nothing from Washing
ton, and do not know what is being
dono or being contemplated, but I can't
see where the officers are criminally
liable."
Little surprise was expressed in
flnaucial circles at he rie in Read
ing stocks from 12 to V.i points on
the exchange following the announce
ment of the dissolution decision
A tentative view was expressed in
some quarters that the decision does
not in itself mean that other railroads
holding coal property wiM have to dis
plse of them.
It was pointed out that the court ap
parently rests its decision upon the
monopoly cburacter of the Reading's
hold upon the nnthraclto Industry. Its
holdings, together with those of com
panies It Indirectly controls, are esti
mated to contain from Co to CO per
cent of tho unmined anthracite in Penn
sylvania. Thep resent decision refers
so pointedly to the anti-trust law and
the violutlon thcrcofe that it was as
sumed thnt tho commodities clause, of
the interstate, commerce net had not
entered into tho decision in an impor
tant way, if nt all.
Much depends, lawyers said, upon tho
decree of dissolution which the District
Court is directed to issue. It will bo
for tho District Court to interpret the
decision of the higher court in terms
of practical ntinllcatlon. If tho prece
dent of other cases si followed, the
lower court will direct the attorneys
in the case to agree upon terms of n
dissolution which embodies (he sub
stance nnd spirit of the Supreme Court's
decision and submit it to the trial court
for approval. If either the attorney
general or counsel for the companies is
dissatisfied witli the terms of the disso
lution decree as approved by the trial
court, his or their exceptions thereto
might be carried up to the Supreme
Court.
Doubt was expressed ns to whether
the District Court would allow stock
holders of Reading Co. to recelxe stock
of the constituent companies. The
precedent established by the dissolution
of Standard Oil. however, argues that
promt shareholders will receive pro
rata holdings in tho constituent com
panies. Few of the stockholders of the old
Philadelphia and Reading Railwaj . who
stood in the ramshackle freight shed in
February, 1S'.HI. and saw their prop- i
crtj sold under the auctioneer's hammer
to the reorganization committee, ever
dreamed It would deelop Into Mich a
valuable propcrtj.
McLcoi liesponslble
To retain their equity in the company '
which was materially reduced b the
drastic reorganization plan, they were
forced to pu a penalty of 510 a share
Many of those patient holders had passed
through two previous receiverships, as
a result of what was then regarded as
the follies and wild dreams of Franklin.
It. Gowen nnd Austin Corbln. in sinking'
the company's funds in the purchase of
the anthracite coal lands.
The company's financial plight was at
that the duo to tho ambitions of A. A.
McLcod, who was president of tho old
Philadelphia and Rending Railway from
1800 to 1803, to establish a monopoly
of tho nuthraclte trado in tho Now
England gateway.
Those who had paid the $10 penalty
saw their stock in tho following year
fall to $7.C0, or what was then said
$2.00 under nothing. Those who had
the temerity to purchaso tho stock dur
ing this gloomy period were finally re
warded for their faith. That wear was
the turning poiut in the company's his
tory. There were three mcu who had
great faith in the Reading property, and
foresaw immense profits should business-like
methods be applied. These
men were J. Pierpont Morgan, George
V. linker nnd Goorirc F. llacr.
The strength of their forethought was
confirmed when the stocK, wnicn m leui
had sold $2.50 under the reorganization
nsspssment of S10. sold un to 170Vi on
the New York Stock Exchange on the
percentum basis, or half shares, equal to
SllV's on tnc tun snares, in me mean
time, from n deficit to meet the fixed
charges in ISO", the company baa ac
cumulated a surplus of approximately
$41,000,000. .
In 1005 dividend!) at the rate of 4
per cent, or $2 n year, were begun in
tho first and second preferred stock. In
100." dlxideuds of 30 per cent, or $1.75,
were commenced on the $70,000,000
common stock. In 1000 this was raised
to 4 per cent; in 1010 to 0 per cent,
nnd in 1013 to 8 per cent.
In tho earlier part of the present
ccntnry in following out tho so-called
community of interest idea, heavy pur
chases of the Rending Company, the
holding company, nnd successor to tho
old Philadelphia & Reading Railroad
Co., were bought by the Pennsylvania
Railroad and New York Central Rall
road interests. Tho holdings of the
Pennsylvania Railroad were cnrrled by
the B. and O. Railroad, of which road
the Pennsylvania had Bccurcd control
ling interest. They amount to $0,005,
000 first preferred stock: $14,205,000
second preferred stock, md $10,002,009
common stock. Similar amount is held
b ytho New York Central Railroad,
making a total holding of $30,182,500,
out of the total capital stock of the
Reading Company of $140,000,000.
Supplemented Dy Stockholders
These were supplemented by large
holdings by Georgo F. Bacr, II. O.
Frlck and P. A. II. Wldencr, which, it
is understood are still held intact by
their estates. In other words, it has
been, figured by recognized experts that
from 60 to 75 per cent of tho Reading
capital stock is securely locked up in
pwin Balmer i
1&LXJ
Personality
EVERYmin itutinctivdy
aims to mate hu poj
lesiioni expressive of his own
personality.
Out of a variety otShtlttn
Lttms Automobile Uphols
tery Fabrics there is one
which exactly expresses your
taste and gratifies your special
desires. It is awaiting your
selection.
TOT. SEAL OF DIST1MTTION
Sidney Blumbnthal W Co. Inc.
39 j Fourth Avenue, New York
strong boxes. This would seemingly in
dlcato that comparatively few of the
original shareholders of tho Rcadfng
Company, who weathered tho threo re
ceiverships, prior to 1800, held on to
tneir BtocK, ana nro nuio to reap uio
benefits that are about to accrue from
the segregation ordered by tho Supreme
Court decision.
No plan haa yet been formulated ror
tho segregation, but it is certain there
is a big melon cutting awaiting tho
shareholders. Somo interesting ques
tions have already cropped up. Ono tho
position of tho preferred stockholders is
a distribution! of assets. Tho other tho
position of tho general mortgngo bond
holders. Tho indenturo of this mort
gngo covers tho entire Reading property,
including the Opting property. It is
reasonable to assume, according to tho
agreement of tho mortgage, these bonds
must bo retired at par and interest, al
though they do not'maturo until 10D7
Rut thcro can be no segregation until
this mortgngo is lifted.
i
Weigh this !
In a Ferro suit you see the fit before ;
you order.
Fine clothes at much less than you'd
pay a fine tailor.
. Ferro & Co..
Clothiers & Outfitters
Agents for
Rogers Peel Clothes
ChcstnutSlreelfJunip
Gov. Calvin Coolidge
Says:
WVtfE need a broader, firmer, deeper
" faith in the people, a faith that
men desire to do right, that the
Commonwealth is founded upon a
righteousness which will endure, a
reconstructed faith that the final
approval' of the people-is given not
to demagogues, slavishly pandering
to their selfishness, merchandising
with the clamor of the hour, but to
statesmen, ministering to their wel
fare, representing their deep, silent
abiding convictions."
The fourth large printing of Governor
Coolidge's book, ,
"Hav $ Faith in Massachusetts"
is ready. There is no second-hand thinking
inthis book. Read it: every speech has
a vital message for this day and hour.
At all beoi-itarn; $r tint ptt
paUfrtl.S0hthpMUkns
Houghton Mifflin Company, Boston
sitfbfllLLLLLLLLLLLLLLLLI
!
r r F i
Best White Enamel
Nursery Furniture
Aseptic
"Kiddie Koops"
Cribs
Every little time and labor-sav- DtB,u'"lu
ing devico that you can introduce Dressers
into your nursery makes for the Wardrobes
greater comfort of baby and the
conservation of jour strength. Scales
Como, ace these pretty, practical Dainty Blankets
fhcnbcsTW0 ar headquartCrS fr and Comforts
Dougherty's Faultless Bedding
Hair 3Iattresscs Box Springs Bedsteads
1632 Chestnut Street
fl
BONWIT TELLER & CO.
AeJpedafti Jhop of Originations
CHESTNUT AT 13th STREET
Have Arranged for Wednesday
A SALE OF
WOMEN'S SUITS, CAPES &
WRAP-COATS
Comprising 448 Pieces at Very Special Prices
The most fashionable Silhouettes of the Season featuring the most successful types
reproductions of the Paris Couturieres, as well as exclusive Bonwit Teller & Co.
Originations.
Heretofore Sold at from 65.00 to 250.00
WILL BE CLOSED OUT AT
50.00 and 75.00
SUITS
(18) Gabardine and Tricotine Suits.
Closing-out Price 50.00
(14) Braid-bound Suits.
Closing-out Price 50.00
(20) Navy Serge and Tricotine Suits
Closing-out Price 50.00
(12) Bolero and Eton Suits. Navy
and Black.
Closing-out Price 50.00
(2) Copies of Imports.
Closing-out Price 75.00
(7) Treco Cloth Suits.
Closing-out Price 75.00
(15) Imported Tricotine Suits. Navy
and Black.
Closing-out Price 75.00
(20) Dressy Tatlleur Suits, Navy and
Black. Closing-out Price 75.00
COATS "BSTOKWP
(12) Bolivia Wrap Coats.
Closing-out Price 50.00
( 14) Camel's-Hdir Polo Coats
(Samples).
Closing-out Price 50.00
(38) Capes of Serge, Poiret Twill and
Tricotine in two-tier ac
cordion plaited and
other models.
Closing-out Price 50.00
(10) Handsome Evening Wraps.
Closing-out Price 75.00
( 1 ) Beaded Black Taffeta
Wrap. Closing-out Price 75.00
(40) Peachbloom Capes and
Wrap Coats.
Closing-out Price 75.00
(30) Worumbo "Pure"
Camel'8-Hair Coats and
Capes. (Slightly soiled.)
Closing-out Price 75.00
SUITS
150 Sports and Semi-dress
Suits in a. variety of Stun
ning Models Cut on
Swagger English lines
Showing newest detail in
pockets, belts and collars.
All sizea are included in
this lot Now
35.00
COATS AND WRAPS
An accumulation of 45
odd styles and sizes in
leather coats that were
69.50 to 110.00. Evening
Wraps that were 65.00 to
125.00 and dark silk coats
that were 69.50 to 135.00.
Now
35.00
Note While the range of sizes is complete from 34 to 46, we would suggest early
shopping, as in most cases there are only single sizes of a style.
i Ambtva
Amberg Spent Seven Years Discoverinf
The Law of Correspondseaacc
The Amberg Plan Has Saved
Hundreds of Years in Business
A I HE cost would be great enough, if only a
I 1a.lp'c 4imn ma nroctorl Ynr 1f!r TPrnrH5. Pi
file
. . . . A 1 1 Ll. -.4kJM ...
ciertc S' ume were vvasieu oy toat. retuiua, wm
JL plicated indexes, unnecessary coding and arbitrary
record handling routine. But everybody's time
is wasted by files which won't find.
The Amberg Plan is so personally individualized to you
and so closely parallels your organization plan, that it
enables any employee knowing the A. B. C's to find any
filed record in your file clerk's absence. And the use of
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Office managers say that while the Amberg Plan creates
no disturbance of routine, it gives them the greatest pos
sible freedom in perfecting office organization.
Why the Amberg Plan
is the Simplest Plan
Two simple factors govern distributing your records so
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is the fundamental law of name occurrence proved 99V6
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How the Law of Correspondence
Tells Who Will Write to You
There is a practically infallible law of the occurrence of
commercial names. Amberg discovered this law and
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in any period, in any business, of any size, can be, esti
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in your business is kept accurately distributed when the
Amberg Plan has provided for both your special and
your normal volume of records.
How to Analyze
the Amberg Plan
Put the solution of your filing problem up to Amberg.
If Amberg cannot prove to your satisfaction that the Am
berg Plan will solve your problems you lose nothing. But
if you are convinced the Amberg Plan will solve your
problems and that you are losing by present methods you
will gain by a conference.
It costs much less to adopt the Amberg Plan than to keep
on with obsolete or makeshift methods which won't work.
Amberg manufactures wood and steel vertical cabinets
and all indexing and filing materials required for any kind
of business. Amberg only sells filing equipment as a means
of applying the basic laws of filing. As many concerns are
using the Amberg Plan in the modern, vertical cabinets
they already had as in Amberg cabinets.
Chicago
Boston
Cleveland
Amberg File c& Index Company
Widener Building, Philadelphia
Walnut 4674
Pittsburgh
Detroit
New York
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