The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1880-05-24
ESPECIAL to the Baltimore American,

ed, that the Reading Railroad and Coal and
Iron Company had suspended. The great.
est excitement at once pr, vailed, both on
Third and Walnut streets, the coai-men be.
ing as much alarmed at the COLLAPSE
as those directly interested In Reading
stock. At O'Clock the announcement was
made that the Philadelphia and Reading
Coal aud Iron Company had suspended pay.
ments, being unable to meet its obligations.
IL was first said that some OF the notes of the
company bad gone to protest; but finally,
as far ~ any authentic information could
be obtained, u was generally reported that
the checks OF the Reading Coal and Iron
Company on one OF the city banks had been
returned dishonored. The entire street
was In ferment, and ont of the door OF the
Stock Board clerks and brokers and outside
spectators were constantly bursting and
rushing TO their offices In the execution OF
bargains. When the rumor was once lisped
IT did not need willing lips to help 1t on its
mission, and before half an hour ii took a
dozen different shapes and assumed mag.
nitude which, IL IL were accepted as q fact,
portended the complete bankruptcy OF the
Reading railroad Itself. And such, indeed,
proved to be the fact, for shortly after 2
O'Clock President Gowen made the follow
ing official announcement:
The Philadelphia and Reading Railroad
Company and Philadelphia and Reading
Coal and Iron Company have been com.
PEELED to suspend payments. The man
ayers will take immediate measures TO pro-
test intact tue property OF both companies
and continue the business for this purpose.
The daily revenue will be applied, so far as
required, TO the payment OF wages and sup
~ no NJ
(Signedl FRANKLIN Il. G0wHN,
President.
President Gowen was at once sought at
the Offices OF the Reading Company, and
was found calmly applying himself to the
intricate and difficult problems which the
sudden crash had brought before him, and
would be interrupted by none except men,
bers OF the Board OF Directors; and this
body had met at O'Clock and authorized
the above statement, and in regard to which
they further explained that measures would
be taken to protect intact the property OF
both companies, and that they would con-
tinue their business. For the latter pur-
pose the daily revenue will be applied, so
FAR as required, to the payment Of wages
aud for supplies. IL is understood that it
was also agreed to ask for the appointment
OF receiver. One director said that
the whole trouble grew out Of the floating
Indebtedness, that the obligations came in
too fast to he met. This debt is nearly
S6,000,000. 1t was S7.500,000, and but re-
Gently large sum was wiped out. The in
terest on the debenture bonds is about
coming due. The company had an extern
sion OF five years on these bonds. Besides
these, the interest on the consolidation
hsAya d. p.a ff. nt It,., Ia
and measures were being taken to provide
therefor. President knight, OF the Bound
Brook road, states that the failure will not
affect in any way either the North Penn or
the road he represents. Ever since the
about IL per cent, while it only paid out 6
per cent as rentals.
The excitement had hardly reached its
height when the regular meeting OF the
Stock Board closed, and after that the curb
stone brokers got together and hammered
Reading down to 124. This figure will pro-
badly be taken as the opening price at the
regular Board; at least this is the impression
prevailing. The excitement for time on
Third street was intense, but towards the
latter part OF the afternoon it gradually
subsidized.
The Philadelphia and Reading Coal and
Iron Company dates back 10 the year 1872,
" her the Philadelphia and Reading Rail-
road Company procured the passage OF an
act by the Legislature of this State authoriz-
ing the Coal and Iron Company to own
and work coal mines and coal lands In
Pennsylvania. The peculiar name OF the
new corporation was merely another style
for the Philadelphia and Reading Railroad
Company, TO which all its stock has be-
longed from the first, and which resorted to
this device to get the opportunity to en-
gage in the business OF mining and sell.
ing as well as OF transporting coal. The
company that year expended 100000
600, and secured a dominant interest
over collerles producing 100000 tons
yearly. The company soon after proposed
TO the proprietors OF the remaining col.
lieries. which were then producing in the
aggregate 3, 242, 900 tons, that they should
combine with them and receive a certain
sum per tox for their coal. This PROPOSE
ton was at first resisted, but was ultimately
acquiesced in before the end Of the year,
and it was authoritatively announced that
thereafter there would he monthly meetings
OF all the coal-producers Of Pennsylvania,
both corporate and private, at which the
price OF coal was TO be fixed to suit their
interests, and a board OF control was to SUI
pervise the business Of the trade, aud allot
the amounts to be sold by each COM
pany. All went we'll for a time, but in
1875-'76 some Of the companies began to
cut prices and sell more than the quota
allotted to them, and In August, 1876, the
combination was dissolved, and more or
less persstently since that time the con-
fiict between the companies has continued.
Last year the fierce fight is said to have
cost the trade in actual loss $50, 000,-
600. To check this cut-throat business an
agreement was made last winter, and since
March production has been restricted TO
half time In order TO keep the prices up.
The average price since that time has been
81, which is conceded to be remunerative
to producers aud carriers. But the trade
has been unsettled, and the demand very
light. This is one OF the chief causes OF the
present difficulty. 1t is understood that
the company was obliged to pay New York
parties for borrowed money to the amount
OF $500, 900, and this swamped the concern.
THE LAST STATEMENT.
The general balance-sheet Of the Phila-
delphia and Reading Coal and Iron Com
psDy, November 80, 1879, shows that the
value OF the coal lands, timber lands, iGl-
ETC., is s59.699,7 99.45. Against
this there are mortgages and capital stock
(SS, 600, 0@O} amounting to s63,O62, S64.04.
OF the mortgages, two amounting TO S39.-
737, IS are held by the Philadelphia and
Reading Railroad Company.
The assets are placed at s3,s93, 171.2',
and the liabilities $685., 070.07.
The cash deficit OF the Coal and Iron
Company last year was, as stated in the
report:
:. - -. - A. aEA ooS 90