Chestnuts Into Fire

Since last November, when Justice Bill Douglas' famed Los Angeles Lumber decision read the riot act to underwater stockholders, common shares in bankrupt railroads have not been worth much. Mobile & Ohio, Missouri Pacific, Milwaukee preferred and common stockholders have been purged by ICC reorganization plans, bondholders given the properties. Last week Pennroad Corp., which wrote its security holdings down by $87,959,517 in 1938, began to shovel some of its charred chestnuts into the fire, revealed that it had sold 152,119 of its original 402,119 shares of Seaboard Air Line (in receivership). The shares, which had cost an average of $11, had been marked down on the books to 62-c-, were sold for 25-c- each.

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