PRR stock holdings of N&W

[NW Mailing List]

Mark - 

It’s not necessary to hold 50+ percent of a corporation’s stock to control.  PRR’s holdings of N&W actually amounted to a little over 39 percent.  PRR had this control from about 1901 until 1964 but didn’t mess with N&W’s day-to-day business; they were content to let N&W go its way and receive over $400 million dollars in dividends over that period of time (I went through N&W’s annual reports for the period, available through the Society. and added them up).  Those were the two best business decisions PRR ever made – 1 – buy control of N&W – 2 – let N&W alone and just enjoy the dividends.  

EdKing

From: NW Mailing List 
Sent: Tuesday, May 20, 2014 11:48 PM
To: NW Mailing List 
Subject: Re: PRR stock holdings of N&W

I researched this a few years back. The largest percentage I could find for PRR holdings at any given time was about 33%. This is insufficient to control a corporation, but it is sufficient to influence a corporation.


Of course if someone can show me PRR holding more than 50% of N&W stock, I will happily be corrected.


Mark Peele



================================
N&W in N scale
On Monday, May 19, 2014 11:33 AM, NW Mailing List <nw-mailing-list at nwhs.org> wrote:




On Mon, May 19, 2014 at 7:30 AM, Ed wrote:

> Most of the shares were sold as a condition of N&W’s 1964 merger and PRR’s
> upcoming merger with NYC.  There was a drawdown of the remaining shares and
> divestiture was not complete until 1972.
>
> I don’t know any web references.  My information came from the N&W Annual
> Reports, available from the Society.

Wasn't there an article in Trains a few years ago about Stuart
Saunders, the rapid steam-to-diesel conversion, and stock prices for
both the N&W and PRR? I seem to remember it was written by one of the
decent authors, William Middleton or H. Roger Grant, and was well
researched to support the conjecture.

Bruce in Blacksburg 

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