New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1880-05-22
TIE NEWS IN THIS CITY.

CHANGE, BUT NO PANIC-NoNE oR THE NEW
YORK BANKS BELIEVED TO Bis sERIoUsLY Az
FECTED BY THE SUSPENSION
News of the Reading suspensions was received In
this city about yesterday through private dis
patches from Philadelphia. The earliest tidings
concerned only the Coal and Iron company, whose
checks had been thrown out by prominent Phia-
delphia banks. 1t was said at tho same
time that President Gowen had promised to
have tho matter arranged later in the day. When
it was announced upon the authority Of the presi-
dent, that the company had suspended payment, 1t
was believed generally that the railroad company
must share the fate, and this belief was con-
trmed late In the afternoon by the Official an
nouucement Of its suspension also.
Although 1t las been known for a long timo that
tho Reading Company was in severe financial
straits the failure at this date was unexpected.
1t was the absorbing topic of conversation in Wall
Street and in brokers' offices and bank
parOrs tho influence of the failure the stock
market was discussed at length. In the Stock
Exchange Reading stock rapidly declined from 4Gl4
after having opened at 46. to 90l4 and 31Si. The
effect of this decline felt by other coal stocks,
and the whole market was carried down In sym
pathy with the coal stocks While the dealings in
the Exchange were attended with considerable ex-
element there was no approach to q panic, and be-
lore inc Close Oh DuSlueb5 u pulO VI lnO iOSh
was recovered. Particulars of the failure wero
sought with great eagerness, but only the most
meagre details were received before the closing of
the Exchange. The total business at the board was
large, and nearly one-third was in coal stocks In
some offices the transactions so numerous that
the brokers were unable to make yesterday the
usual comparisons.
The losses caused by the failure will not fall
heavily it is believed, upon the New-YOrk banks.
The Reading Company has been for several years
largo borrower and has recently applied for loans in
this city. but these requests have been refused in
great part. President Gowen while here on We'd
nesday sought to secure new loans but it Is not be-
leved that he was successful. The City Bank, which
formerly did part Of the Readings business,
is said now to hold none Of its paper. The Man
haitian Company has over 100000, but President
Harberger said yesterday that the bank was amply
secured The Bank Of Commerce was said to have
O large amount of the company's obligations, but
President Vail refused ptorly to furnish any
information about the matter. 1t was said-nOt
by Mr. Vail-that a few months ago tho
bank had nearly $1,000,000 OF tho paper
but that tho amount had been greatly reduced
probably. Other banks have refused for n long
time to make loans Reading securities, except at
very low prices, and its paper they have refused TO
accept at any rate. An officer Of prominent bank
said yesterday that when he was IN search Of Phil
adephia funds he had observed suspicious rcadi-
ness on the part Of the conpanys agents to supply
the bank with the exact amount wanted
At the Offices of tho leading coal companies 1t was
said that the failure OF the Reading Company would
be favorable rather than otherwise to their
interests. 1t would remove from tho market
needy seller, which had been obliged to marketits
coal at any prco almost in order to meet
it's pecuniary Obligations. Officers Of some COM
panles, however, claimed that generally President
Gowen had stood manfully by the schedule prices.
One object of his recent visit to this city had been
to arrange for further suspension of mining in
June
Among the brokers and railroad mon at the
Windsor Hotel last evening, the failure was the
chef subject of conversation. Opinions as to tho
result on stocks varied with the position in the
ket of the speaker. One broker said :" We have
seen the worst of it now. If Mr.. Gowen is made re-
cever he will keep up the present condition Of af
fairs as to mining and selling coal and continue the
arrang cement with the other companies. And even
If someone else becomes receiver he Is not likely tc
change the policy of the company"
Another broker said 1t lOoksas If in the pres
ent depressed state of the market this would send
everything further down. Much depends upon what
the receiver does. He may find some relief to the
company from the necessity of continually raising
great sums of money that affairs may be tided along
If he concludes to sell the stock OF coal OIL hand
that will break the market and ruin the existing
combination"