The Carbon advocate. [volume] (Lehighton, Pa.) 1872-1924, 1880-05-29
LIABILITIES s1sO,OOO,O 900.
PHILADELPHIA AND READING, RAIL
ROAD SUSPENDING PAYMENTS.

hOAD DOOl E4ND DlNO IA J NJ EN- 10
THE CoAL Gvp IEov CoMpANY ALSO sUs-
UNNECESSARILY succUMBING AFTER
STRUGGLING FOR YEARS UNDER THE
BURDEN OF GREAT DEBT-THE
FEELING IN N. Y, AND PHrLA-
DELPHIA.
PHtLADEtPHIA, May 2l.--Rumors were
current in the street this morning that some
thing was the matter with Beading, and the
stock began to tumble. It soon got out that
at the Clearing House yesterday afternoon
checks aggregating nearly 5000, ,OOOremained
uncancelled at 6 O'Clock this morning, which
is the usual hour for settling. At noon there
was no cash forthcoming, and, as is the case
ordinarily, the checks were placed IN the
hands of a notary who demanded paymcnt,
There was no payment, and the checks
were protested. This surprise for the street
was only aggravated when tho official an
nouncement was made that the Philadel-
phla and Reading Coal and Iron Company
had suspended payment. Immediately
the office was besieged.
"What are the reasons for the suspension?'
inquired a reporter.
81 haye nothing to say" responded TIC
Secretary, and in response to an inquiry
about an official statement came the answer
"Mr. Gowen has no statement for the public
at present"
1t was not long before the widest excite
ment prevailed in Third street. The stock
which had opened at 23l, went down to 20!
under the rumor7. The report became de
finite at f2l, and then the stock was rattle,
down, with brief periods of revivals, unit
at twenty minutes Of 3 II reached l5l, will
a generally demoralized market,
frter the rumors about the Coal and Iron
Company had been settled, it got abroac
that the Reading Railroad had also suspend
ed. The entire street was in ierment, an,
from the door of the Stock Board clerks ant
brokers and outside spectators were con
stantly running to their Offices in the exc
cution OF bargains. The outside pressur
became so great that President Gowen wa
at length obliged to say something. Iii
Secretary appeared from his private oflic
with this announcement:
The Philadelphia and Reading Railroad
Company and the Philadelphia and Read
ing Coal end Iron Company have boel
compelled TO suspend payment. The mana
gers will take immediate measures to pro
tect intact the property Of both comPenie
and continue their business. For this busi
ness the daily revenues will be applied, S
far as required, to the payment ofwages am
supplies. By order OF the Board of Mana
gers. .,. FRANEIIN B. GowEN, Prest.
This action Of the Board Of Mans gers wa
Immediately telegraphed to the yariou
points along the line of the railroad. Th
worst wqs noY known, and all the fear
had been verified. Al this afternoon every
thing was in a state Of excitement at th
Reading offices. Clerks were kept on tn
Continual go With books and papers for th
directors. The Board OF Managers held
smeeting in President Covers room. Tn
, session was prolonged and some Of the larg
est stockholders were allowed to enter. !
/ stout doorkeeper kopt everybody else q
arms at length. Mr.. Gowen had the sam
answer IOr all callers; II am too busy {
see you" The eompanys officers are eX
tremely retieent, and refer all inquirers
Mr.. Goweny who kept his mouth tight
closed, and started of for New York to
night. Mr.. Bradford, the Treasurer, in ans
wer to a question, said: 81 have nothing
say, and Mr.. Gowen is the only man VIII
can furnish information" None of ther
would say a word. They merely points
to the official announcement Of the suspeu
sion as the only answer they or the Pres
dent would make. In addition TO th
managers there were present at the meetin
of the Board James r. CoUen, Esq, Pres
dent Lewis Of the Farmers and Mechanic
Bank, depository of the company; ThoHu
Hart, Jr., and several OF the Coal and Iro
Company'a officers. Il is understood that
was agreed to ask for the appointment of
receiver.
, A director who preferred that his nam
should not be given, said tonight that th
whole trouble grew out Of the floating in
debtednessi that the obligations came !
} too fast to DO met. This debt is betwee
five and six millions. 1t wac S7,5OO,OOl
J but recently large sum was wiped ou
The interest on the debenture bonds is abou
coming due. The company had au extensio
of five years on these bonds. Besides thes'
the interest on the consolidation bona
(S23, 3,OOO,OOO) was 70 bo met on the LIST ,
June, and measures were being taken
provide therefor.
President knight of the Bound Broo
road says that the failure will not affect i
any way either the North Pennsylvania d
the road he represents. Ever since the leas
these roads have netted the Reading abor
eleven per cent, while it only paid out 81
per cent. as rentals.
: After the regular meeting of the Stoc
: Board, the eurbstoue brokers got togeth,
? and hammered Reading down 10 l2l tn
figure viii probably be taken as the opeuin
J price at the regular board at least this
the impression prevailing. The excitemer
Cor a time was intenfo on Third street, b,