Lancaster daily intelligencer. [volume] (Lancaster, Pa.) 1864-1928, 1880-05-22
THE +. 4 h. FAILURE.
A Sketch Of the Coal and Iron Conn.

:" oA0SCA VI SuC NOol ooU kIVu COmD0nV.
A meeting Of the board of managers of
the Philadelphia and Reading railroad COM
pahy, which is composed Of the same gen.
tlemen rs the managers of the p. and r.
coal and iron company, was held yesterday
afternoon. The Sc IS on continued for nearly
two hours, and then Mr.. Gowen appeared
and gave out the following:
'1'hc Philadelphia and Reading rail-
road company and Philadelphia and Read
ing coal and iron company have been COM
pcllcd 70 suspend payments. The
managers will take immediate measures
to protect intact the property of both COM
panics and continue their business. And
for this purpose the daily revenues will be
applied SO far rs is required to the pay of
wages and supplies.
by order of the board of managers.
F. Is. GOwEN, president
Philadelphia and Reading Coal and Iron
Company.
The Philadelphia and Reading coal and
iron company was organized il the year
1872, and the entire stock was subscribed
for by the Philadelphia and Reading rail-
road company. The object of tho coal
company was to give the railroad company
a certain control over the coal lands along
its lines. Different collieries were bought
until the company owned probably ma
jority and, by mining and shipping the
coal, was feeder to the p. & X. Il. II.
Co. The great competition in the coal trade
and the cutting of prices operated seriously
against the company, and, after many con-
ferenccS, a combination was entered into
by the leading coal and transportati, n
companies. and while the compact was III
in force the Philadelphia and Reading coal
and iron company Jared pretty well. When
this compact expired, about year and 4
half ago, efforts to renew it were unsuc-
cessful, and then each company carried on
its business in its own way For a time
the Philadelphia and Reading coal and iron
company prospered by the new order of
things, but the production got beyond the
demand, and then began trouble. Early
IN the present year, however, the leading
interests in the anthracite trade apparently
came to an understanding in regard to the
operations for the season. The Reading
company took the initiative in movement
to restrict production in order to maintain
prices. The primary object was to get back
some of the money lost in tho fierce fight
OF last year, when, it is stated, the aggre-
gate loss to the trade approximated $780,
900, 600, and the next consideration was to
get the trade upon a paying basis. In ac-
cord ance with this agreement general
suspension of mining was ordered for three
days in each week in March. On the first
of April operations were resumed in full,
but at the expiration of fortnight return
was ordered to halftime policy, and this
has been continued ever since.
The general balance sheet of the Phila-
delphia and Reading coal and iron COM
pany, Nov. 30, 1879, shows that the value
of the coal lands, timber lands, improve
ments, &C., is 1900, ,799.45. Against
this there are mortgages and capital stock
CsS, OOO, OOO amounting to 1909, ,S64.O4.
OF the mortgages, two amounting to $780,
737, 965.53 are held by the Philadelphia
and Reading railroad company.
The assets are placed at s3,S93, 171.27,
and the liabilities 81, ,G5G, ,O7O.O7.
The cash deficit of the coal and iron COM
pany last year was as stated in the report
Total interest charges. s, ,O54, 1856 30
Less payable in scrip. ............... III, ,l7O 90