Turnabout II

In St. Louis last week, the Missouri Pacific Railroad moved a step closer to reorganization and Bob Young a step closer to owning a sizable chunk of MoPac's new common stock. Since MoPac went bankrupt in 1933, its common, 49% held by Young's Alleghany Corp., has usually been considered worthless. Four times the Interstate Commerce Commission tried to reorganize MoPac, but because each plan included bond or preferred stockholders and excluded common shares, Young blocked the moves in the courts. Finally, Young and MoPac's trustee compromised, agreed Young would have 10% (biggest single block) of the new common stock after reorganization (TIME, May 24). Last week a federal judge in St. Louis approved the compromise, directed bondholders, preferred and common stockholders to vote on it. But even after the tally is completed and MoPac is reorganized, Young still cannot vote his new shares. They must go into trusteeship, since ICC regulations bar him from voting stock in a competing railroad.

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