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Proportion of total stock held by 10 leading stockholders in principal railway systems, 1915-Continued.

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Mr. WARNE. This table shows the total amount of stock in these large railway systems that is held by the 10 leading stockholders, and I have here a list of the 10 leading stockholders in every important railway system in the United States, showing the par value of the stock they held, the number of votes each is entitled to in the board of directorates, and the per cent that these 10 hold to the total. I might hurriedly read some of these summarized percentages. The CHAIRMAN. Also give the name of the company.

Mr. WARNE. In the Pennsylvania Railroad the 10 leading stockholders own 5.40 per cent of the total stock.

In the Baltimore & Ohio the 10 leading stockholders own 21.78 per cent.

In the New York Central the 10 leading stockholders own 28.03 per cent.

In the New Haven Railroad, 13.61 per cent.
The Philadelphia & Reading, 100 per cent.
In the Erie, 21.22 per cent.

In the Delaware & Hudson, 8.57 per cent.

Senator KELLOGG. One moment about the Philadelphia & Reading. Its stock is held by a holding company, is it not?

Mr. WARNE. Yes.

Senator KELLOGG. But the stock of the Reading Co. is not in that condition.

Mr. WARNE. That is not reported by the Interstate Commerce Commission. You will find, too, Senator, that the larger owners of stock in these companies are usually other railroads.

In the Erie, 21.22 per cent of the total stock is owned by the 10 leading stockholders.

In the Delaware & Hudson, 8.57 per cent.

In the Delaware, Lackawanna & Western, 30.83 per cent.

In the Chesapeake & Ohio, 19.38 per cent.

In the Norfolk & Western, 49.24.

The Western Maryland, 63.39.
Wabash, 64.55.

Lehigh Valley, 16.39.
Southern Railway, 47.17.
Illinois Central, 35.30.
Atlantic Coast Line, 37.97.

Seaboard Air Line, 57.49.
Denver & Rio Grande, 54.11.
Missouri, Kansas & Texas, 38.59.
Missouri Pacific, 12.98.

Chicago, Milwaukee & St. Paul, 10.02.

Chicago, Rock Island & Pacific, 18.92.

St. Louis & San Francisco at the time this table was prepared was in the hands of a receiver, and I have no information on that.

Union Pacific, 15.60.

Northern Pacific, 12.52.

Grand Trunk Western, 100 per cent.

Chicago, Burlington & Quincy, 99.28 per cent.

Southern Pacific, 19.65 per cent.

Great Northern, 12.53 per cent.

Chicago & North Western, 15.99 per cent.

Atchison, Topeka & Santa Fe, 10.83 per cent.

Senator KELLOGG. As to that, of course, a great many of those it is perfectly evident, like the Denver & Rio Grande, which is owned by the Missouri Pacific.

Mr. WARNE. Yes.

Senator KELLOGG. And like the Reading, which is owned by the Reading Co.

Mr. WARNE. Yes.

Senator KELLOGG. And like the Illinois Central, in which the Union Pacific has about 29 per cent of the stock.

Mr. WARNE. Yes.

Senator KELLOGG. But it is a fact, also, that in some of these lines the stockholders, or the owners, are represented by trustees. For instance, at one time all the Dutch ownerships in this country were generally listed in the name of a bank or trust company or certain trustees. There is some of that also.

Mr. WARNE. That is true; yes, sir.

Senator KELLOGG. The real ownership being vested in a large number of people. Take the Pennsylvania Railroad. It has been stated that its actual ownership-I will not pretend to say exactly--but my recollection is that they have over 50.000 stockholders.

Mr. WARNE. Almost 100,000 stockholders to date. On that point, Senator, if the principle followed by the Pennsylvania Railroad were followed by the other railroads of the country, I doubt if you would have any railway problem. That is not saying that there are not criticisms of the Pennsylvania Railroad. There are. But as to the operating, financial, and corporate organization of the Pennsylvania Railroad, its organization is such, I believe, as regards its relation to the public interest, that if other roads were similarly organized you would not have this trouble.

The reason the Pennsylvania Railroad has such a large number of stockholders is simply this: When they purchased the stock of a sub

sidiary company they issued against it a bond which permits the holder of that bond to transfer it back for stock in the Pennsylvania Railroad. The New York Central and most companies when they buy the subsidiary issue a collateral bond, which can not be turned into stock of the parent company, and that explains why the Pennsylvania Railroad to-day has such a large number of separate and individual stockholders.

Senator KELLOGG. The New York Central has a very large number of stockholders.

Mr. WARNE. If you will permit me, I think the New York Central has 38,000; I am not sure. I have a list in my office, but I could not find it this morning.

Senator GORE. I wish you would attach that list to your statement. Mr. WARNE. I will, Senator, if I can find it.

(The statement referred to is here printed in full, as follows:)

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While this stock stands in name of Deutsche Bank, the certificates are indorsed to bearer and held by a large number of individuals.

Owned by the Union Pacific.

Maatschappij tot Beheer van het Administratiekantoor van Amerikaansche Fondsen; opgerigt door Broes & Gosman, Ten Have & Van Essen en Jarman & Zoonen to Amsterdam.

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1 Central Trust Co. of New York as trustee under mortgage of Reading Co. and the Philadelphia & Reading Coal & Iron Co. dated Jan. 5, 1897.

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3 Henry Graves. ir., and George C. Graves, trustees.

2 Cath. A. Taylor, P. R. Pyne, M. T. Pyne, and L. Turnure, trustees.

1 Morris Gray and Henry L. Stattuck, trustees under will of A. Hemenway.

4 Maatschappij tot Beheer van het Administratiekantoor van Amerikaansche Fondsen, opgirigt door Broes & Gosman, Ten Have & Van Essen en Jarman & Zoonen te Amsterdam.

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