New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1880-05-23
THE FAILURES IN PHILADELPHIA.

| lBY TELEGRAPH TO THE TRIBUNE1
PHILADELPHIA. May 22-The excitement caused
by the suspension of the Reading Railroad
and the Reading Coal aud Iron Companies
continued to-day, although It was not so
| great as had been expected. Third Street
devoted itself to settling contracts and
closing up accounts. The cearings Of Reading
Railroad stock alone amounted to 100000 shares
| and tho balances to about 900 shares, while the
| cash balances paid were over 100000, sum
larger than the market Value of the liQuidating
shares at the close of business.
The opening price of Reading proved to be the
lowest of the day, the quotation not falling below
10. The sales at 10 were quickly followed by an
advance, caused by purchases to cover short con-
tracts, to 11l2. After the few orders were filed
however, the stock was left without support and
down it sank to 1034 at the Exchange. Subsequent
dealings in the street marked the price down to 10
again. The recorded sales were far below those Of
the previous day in amount.
The attendtiOn of the public was quickly drawn
from Reading Railroad to Lehigh Navigation when
1t became known that the house of James B Young
~ Go. was III trouble and the price Of
the latter stock declined from % to
20l2, with but one intervening sale. Lehigh
Valley opened at 4G, for 1000 shares, clear loss
of per cent as compared with the closing prices Of
the preceding day. but under active transac-
tiOns the price was rapidly advanced to
494. The opening price of Northern Pacific
common was the lowest Of the day, the
first sale being 1912 and the last at20sa with trans
actions intervening at21. The preferred sold at
4104112 the latter for a small lot. Northern
Central sold at 3O2l031. Philadelphia and Erie
at ~; United Companies Of New-Jersey, 100. The
mining shares were represented by O single sale Of
Iowa Guloh at 20 cents.
The failures were but three in number, and the
only one involving considerable amount was that
of James B. Young g. Co., who were heavily inter
ested In Lehigh Navigation and Reading Rail-
road. The other houses unable to meet their con-
tracts were Charles Ii. Jordan & Co., and Rutter,
Newhall & Co.
President Gowen was in his Office from early
morning till late tonight preparing statement for
the public. The Reading directors were in session
over two hours, during which numerous books
and documents were examined. James f. Gowen,
brother of the president and counsel for the COM
pany. was present as legal adviser Just what was
done is not fully known.
There was good deal Of talk to-day sbout Preei-
dent Gowen's expected statement. When questioned
on the subject tonight he said At present things
are in nchoate condition. As yet am unable to |
make any promises. We must have time TO |
,traighten matters ont. Until this Is DONE any talk
by us in public print would do no good" Mr.
Gowen added that the suspension had been in ex-
pectance.
In the general drift of the talk among
bankers, brokers aud railroad men to-
lay regarding the prospects of the
Reading Railroad and Coal and Iron Companies
here a very hopeful feeling, and the rapid ap-
OF the Central Railroad of New-Jersey
md the LehiRh and Wilkesbarre Coal Company,
which have been in the hands Of receivers for the
IL IL |
night be expected of the Reading Com
,anies in case receiver Is appointed.
rhe Lehigh and Wilkesbarre Coal Company
led about the same relation to the Central Railway
Company that the Reading Coal and Iron Company
loes to the Reading Railroad Company, and as IN the
Of the Reading it the losses the operations
f the Coal Company, owing to the depressed mar
et, that swampod the Railroad Company. |
10th companies were practically bankrupt,
nd were put into the hands Of re-
civers After three years of judicous
with the enlarged powers which q Z
cOnfers, both companies are said !
be Oh sound financial basis, while the interests
( all parties concerned have been protected.
A thorough canvass of tho coal operators here to
ay shows that the failure of Reading companies has
nly had q small effect on the coal market The
sntiment Is altogether one OF sympathy for {
resident Gowen and the suspended corporations. \
o very heavy money advances have been made | a
,cently, as President Governs friends have been :
Ipecting the shock sooner or later, and
ade loans against tolls only. Two or three n
lippers who advanced heavily on sales on large
,mmssiOns are caught in On amount aggregating q
200 OO0 but these being in tho nature of loans Y
is thought they will be secured. o.
The coal market Is still firm, and President ~
owen gave assurance to-day that tho rea- -
Dns of his company with other producers will |
matt unchanged for several weeks. 1t Is be-
wed that he will bo appointed receiver of both Of
e companies.
lGESERAL PRESS DIsPATCHl m
May 22.-President GOwen still a,
clines to talk about the matter, will he any
the managers mako any statement regard OF
z the condition of the affairs of the T
mpany. Although there is no confirmation In off, 2
Al circles of tue report that the directors at their
Getting to-day named Messrs. Henry. Lewis aud %
,wen q committee to assume the temporary man. 10
cement of the affairs of the company pending any IL
yal steps that might be taken, 1t Is generally
lieved that such action was taken by the Board.
lere Is hopeful feeling on the street that some
IN will be adopted looking TO the protection
the stockholders, and the saving OF the property
the company. hi
READING, Penn. May 22.-The Reading Eagle Of We
morrow will announce that the Reading Iron
orks, OF which J. TenBrook Is president, ,.I
) suspended payment owing 10 complication rs'
IN the Philadelphia and Reading Railroad
) companies being under mutual obligations. Al,
10 iron works run several furnaces, large Ju
ling mil, tube wOIksI aeil works
about SO, 900 month. The works. however, Il.
1 oon in nnaratinn | hs