Daily Republican., 1880-05-22
SECOND EDITION.
THE GREAT FAILURE.

THE GREAT FAILURE.
Ruspension of the Philadelphia
and Reading IroR Company
what Caused it-The Prospective
Results.
Yesterday q brief local in the late
edition Of the REPUBLICAN announced
the failure of the Philadelphia and
Reading Coal and Iron Company which
carried with 1t the Philadelphia and
Reading Railroad Company. The Phil
adelphia and Reading Railroad stock
was on decline at the stock board all
morning, and it seon ran down from %
to 20. Then about one o'clock came q
semi-oficial announcement that the
Philaaelphia and Reading Coal and
Iron Company had suspended payment,
and then there was more excitement
and . further decline in the price Of
the railroad stock until within a hall
hour the price had got down to l7s.
The excitement at the stock board
continued and Reading stock fell first
TO l64, then recovered one-fourth, and
then went down to 153. The sales at
the Board amounted 10 rs, l25 shares
"A two hours meeting Of the Board Of
Managers of the Philadelphia & Read
ing Railroad Company, being identical
with the mansgers of the Philadelphia
& Reading Coal and Iron Company, was
held yesterday afternoon. MIR. Gowen
appeared and made the following
statement:
The Philadelphia and Reading Railroad
Company aSd Philadelphia and Reading
Coal and Iron Company have been compelled
40 suspend payments. The managers will
take Immediate measures to protect intact
the property Of both companies and continue
their bu, iness. And ior this purpose the
daily revenues will be applied SO far as is re-
Quired, to pay the wages and supplies.
BY order of the Board of Managers.
F. b. GowEN, President.
The Philadelphia " Ledger" of this
morning states that much excitement
was created yesterday by the announce
ment that the Beading Railroad Com
pany and the Reading Coal and Iron
company had suspended payments. The
news was on the street about one o'clock
and its effect was at once noticed at the
Board of Brokers. Reading was sell
ing at the opening at 22E %, and
when the Board adjourned it was down
to l55 bid, while later on the street it
is said to have been quoted as low as
125. The President and Directors Of tie
two companies were in session until late
in the afternoon, the result of their de.
liberations being announced to the pub
Lie in circular, stating that the two
companies had suspended, and that
"the managers will take immediate
measures to protect intact tho proper
ties Of both companies and continue
their business, and for this purpose the
daily revenues will be applied, so far as
required, to the payment of wages and
for supplies" Coal operators express
the opinion thar there will be no de-
CREASED production Of coal on account
of the suspension.
d The Philadelphia Coal and Iron Com
pany, whose suspension had reacted
upon the Railroad Company, was or.
ganized in 1872, and the entire stock
taken by the Reading Company. The
object of the former was to give the lat
ter certain control over the coal lands
along its line. Different csllieries
were bought until the Coal Company |
owned probably a majority, and by
mining ana skipping the coal ittecame
an extensive feeder to the R. R. Com
pany. The competition in the snthra.
cite trade and tie cutting Of prices op-
Grated seriously against the company.
until finally combination was entered |
into by the leading coal and trapsporta-
tion companies to keep down production
and maintain prices.
When this compact expired, about a
year and half ago, efforts to renew it
were unsuccessful, and then each car
ried on its business in its own way.
Recently, however, the leading interest
in the anthracite trade apparently came
to an understanding for the present
season. In accordance with this agres-
msnt, a general suspension of mining
was ordered for three days in each week
in March. On the first of April opera
lions were resumed in full, but. after
two weeks, return was ordered to the
present half-time policy.