Lancaster daily intelligencer. [volume] (Lancaster, Pa.) 1864-1928, 1881-01-11
READINGS REVIVAL.
the McCailnOnts Make u New Move Again

the McCaiInonts Make u New Move Against
GOwen.
McCaimont Brothers have prepared,
through their counsel, a petition which was
filed yesterday in the United States circuit
court asking Judge McKennan to revoke
the order sanctiOning the issue Of deferred
bonds by the Philadelphia & Reading rail-
road aud enjOining all further proceedings
under it. In the petition the London firm
show that they hold Ia, ,9o4 shares valued
at So, 199, 200, and bonds exceeding &c.
600. 900, and have held such stocks for
over thirty years. They then refer to the
petition granted last November in favor
of the $3.50, 900 OF deferred income bonds
and to the prospectus in which those bonds
were advertised for sale. They continue
as follows
Your petitioners are informed and be-
lieve that similar prospectus was issued
in London. They have applied to the re-
ceivers to ascertain whether the SEQ, ,O5S,-
900 which was to he deposited as guaran-
tee, had been deposited with them. Tie
receivers have not informed them OF any
such payment Or deposit. No such deposit
was made before the prospectus was issued
and the petitioners do not believe it has
yet been made. although it WAS
on condition that it should
be made in Philadelphia and
subject to their control, that the receivers
consented to the presentation of the petit
tion. 1t is not believed that the scheme
will be advantageous. On the 9th of De-
ccmber the company 5 liabilities amount
ed to $l11.042, I93 &c. but besides this
there are other liabilities consisting OF
guarantees Of the bonds of the leased
lines. Thus, on the Suoquehanna canal
there was !, rental Of $lS3. 1854, while
the receipts being only $S,O12.lS, there
was Il net loss Of 81 -, :ISl .l6 and there are
many such liabilities involving millions q:
dollars.
'Y"ur petitioners. believing that the
said order is un just to the ri Its -; v'ur
petitioners and the other Stockholders
that it is unwise and inexpedient in view
of the necessity for an adjustment of the
company's affairs, and that the further
attempt on the part of Mr. Gowen to carry
through the scheme will be attended with
miscilievOus result to all parties concerned
and that the proposed issue Is illegal and
invalid. respectfully pray:
s. Tirst-'rhat an order be 1T once made
revokiIg the decree made 10y the court
and have set out that in the meantime Mr.
Gowen and all other persons connected
with the said railroad company, rs well as
the receivers, in these actions be ordered
and enjoEed to abstain from any further
action in the negotiation or contamination
of the said scheme for the issuing of the
S,4, 600. 900 Of deferred bonds.
'Second, That if the court shall he of
opinion that the scheme should either in
whole or in part be carried out, then the
officers Of the company and the receivers
shall bc directed to refrain from the issue
of any such instruments until the form of
the same shall be settled by this court
upon notice to your petitioners and
others interested, and also until the de-
posit to the credit of the receivers has
been made of the $50, 05S, OG0 provided to
be deposited rs guarantee that the
scheme shall be carried into effect and con-
summated."
1t is said that an important cableg,,m
was received at the Reading railroad Office
yesterday, but the officials refused to give
it out. One of them stated that rs far as
he heard from it was believed that the dc
ferre,l bond scheme was an assured s,ic-
cess.