The Carbon advocate. [volume] (Lehighton, Pa.) 1872-1924, 1880-05-29

N d. D.
street, like Third stared for d moment in
blank surprise Mr.. c. +. Schooner said
that the feeling in the trade was one Of sym.
pathy. Those who q year Ggp might have
hail2d the disaster With rejoicing had been.
harmonizsd by tbs combination. The trade,
would not; be affected. though some Of thg
banks holding the paper might be tempo7
rarily embarrassed. This last suggestion was.
contradicted by the statement that none Of
the banks had enough Of the epnpanys pa
per to cause suspension. Mr., T. 8, Roth
ermel and Mr.. Graeif agreed in saying that
the trade would not be affected, but another.
gentleman. an ex operator, who would not
give his name for publication, expressed diff
fereni views declaring that without Gowen
and the Reading Coal and Iron Company
the old cutthroat policy viii, be rc1inaugu-.
rated, and will be kept up uptil the survi-,
val of the fttest shows who ought tQremain,
in the trade. AS to the causes which have,
led to the ,cpmpany's embarrassment, uere
was no difference of opinion expressed in
any quarter, all agreeing that il was the un-.
proftableness of the Coal and Iron Com
papy. D ......,,...y. ..,t 81.
The brokers are much agitated o7er the
event, as it has caused some Of them tseri-.
ous losses. After the break in the price Of
Reading two weeks ago, and its settling at
23 and q a very large number of outside.
spectators, among them sopo leading poll.
ticians, went in ana ,bSigf: extensively,
thinking there, would be sharp recovery,
soon. The usual margin on Reading,isS5
per share. The break to-day was so sudden,
that this was swept away in a few minutes
and before there was time to call for moro
margin, tie brokers, in, anxiety TO saye
themselves, forthwith sold out their custom;
ers, and thus aided the break. Many could.
not do SO without suffering serious loss
themselves, ipr sellers were plenty and buy.
ers scarce, They will therefore be compel
led to hold on to the stock they hsd, al
though there is no hope for the customer,
Just where the brokers stand Will not be
definitely known until tomorrow. Just
where the losses viii fall is not known, but,
it Il thought they are distributed, u is the
general opinion that the Reading is mere.
ly shoaring the lambs, as it were, in other.
words, having come to the end of its rope ID
las concluded TO wipe out the old debts and,
begin anew. The property owned by the.
company is very valuable. 1t has been so
overburdened with debt that the load has
been too heavy for it. Probably 100000
Of PAPER is floating about the city which will
be protested in a day or two. The road will
no doubt be placed in the hands of receiv-,
er, that receiver being President Gowen, and
then the road, relieved, of its debts, Win be-
| gin anew and make money. ,...,.h
The suspended cpfnpqAy is one of the old
est railIoad corporations in the United.
States. It was chartered with the name it
still bears BY the. Legislature OF Pennsyl-
vanin in 1888. IT'S original line from Phila-,
delphia TO Readng was opened for travel in
1898. The system has gradually been in
creased, both by construction and leases,
until the company controlled and operated
over nine hundred miles of road, which
reach in many branches over the coal,
fields of Pennsylvania. 1t is also the lessee
of the Sehuylkill Canal, Iee pii!es IaiH3g, and
the susquchGnua Canal, IS miles long,
The principal business of the railroad COM,
pany is the transportation focal from what
are known as the first and second anthracite
coal folf1 Of Pennsylvania to Port Rich
mond, near Philadelphia. Its 20 wharves,
laid with So miles of track, at that point af-.
ford the most ample facilities of the kind in
the world, The road is stocked with 4lo,
+ ergiaes, 334 passenger coaches, $3.50 freight
cars. and l4,753 coal and iron cars. The
Philadelphia Coal and Iron Company,which
is an oGshoot Of the railroad company, and
practically consolidated. with it, was organ
lied under its auspices in 1871. as sthe Laurel
Run Improvement Company, The title
was changed to the present name late in tho
same year. That company was formed for
the purpose of puyfhesipg and operating
the coal properties with which the railroad
was connected. twas the purchase Of these
propertic1 ~ the high valuation Of ten years
ago that has Handicapped the Reading COM
pany and ultimately caused its suspension.
The railroad company p capitalized at
$34,27S,l75, Of which sh,55l 500, is pre-
ierred stock. Its funded debt is S75,S 800, ,797,
and its floating debt Nov. 30, 1873, was $5,7
2sI,l73 which, with other items make tho
total liabilities 1920, ,s7s 100, Among its as
sets the company estimates its railroad
property at S39,SdsS3l,. and real estate at
S7,Gss,S43. Il hclAs the stock, bonds, aud
other securities. end property of tho Coal
and Iron CoirIany to the amount Of $4T,-
1886. The two companies have, employ
ed in the lasl two years an average #
nearly y, 1000 persons, and have mined and
transported about one-fourh Of the anthra-
cite coal produced in Pennsylvania, Last
year the operations of the Coal and Iron
Company showed adeGcieDcy Of S750,000 in
round numbers. The policy OF the railroad
company in organizing the Coal and Iron
Company was to absorb the mining lands
aud control the production in the districts
reached by its roads. This policy was
initiated by other large coal carrying rail-
roads, possibly with the idea of monopoliz-
ing the business. To the Reading tho
attempt has proved disastrous. Ever sincs
Mr.. Gowen was elected TO the position Of
President he. has worked Increasingly 10
keep the company from bankruptcy, and in
opinion of his associates in the business,
speculators and coal dealers, only his
presence and financial ability have kept
off the evil day thus long. Three years ags
Mr.. Gowen visited Europe for the purpose
Of raising money for aud extending tie
credit OF his company. He was successful.
, Opinions differ as to what the effect Of the
suspension will be on the coal trade aud tho
r coal stocks. Should the companies eoutlalti5 :
to be operated by the present managers. as
Mr.Gowen suggests in his announcement If
tie supension, The coal men aRd stock bTok-
ers are Of opinion that the present system Of
cooperative euriailmeni Of production will
be kept up by tho Reauing aud the other
D ..s.a