New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1884-06-03
RECEIVERS OF THE READING
A LONG EXPECTED STEP TAKEN AT LAST.
ACTION OF THE UNITED STATES CIRCUIT COURT IN
PHILADELPHIA.

ACTION OF THE UNITED STATES CIRCUIT COURT IN
PHILADELPHIA.
pHrr,DFIPHIA. June 2.-The directors of the
PhiIadelphia and Reading Railroad and Coal and Iron
Companies to-day held short meeting, and we're har-
monous in voting for an application TO the United states
Circuit Court receivers appointed The appuea
ton was presented Judges McKenna ana Butter ABOUT
fifteen minutes before = D. m. The plainuH nameo
in the application was Henry c. Kelsey, of New-Jersey
Tie il the holder OF 81 600 OF the income bonds Of the
Reading Rairoad Company. In his petition he ayerred
that the interest on his bonds had not been PAID al
though the report OF the Board Of Managers OF the COM
pany for 1883 had announced a net balance OF 6IO-
1870 So which should have been applied TO the sinking
fund for the purpose Of paying the outstanding bonds
which were secured by mortgage. and that the company
was insovent. Richard L. Ashurst, the attorney who
appeared in behalf OF the bill OF complaint and tue at
tOrneys OF the company James f. Gowan ana Sainuel
Dickson, agreed in suggesting TO the Court Tor appoint
ment "a receivers the OF Edwin NJ Lewis George
de B. Kelm, stephen A. Caldwell. The Court acted
in accordance with this suggestion and in the decree
ordered that Injunction should issue against the de-
PENDANTS restrain them from interfering with the re-
cevers that should be appointed for auditing
the accounts Of the receivers, and that BOND OF
100000 should be required from the receivers This
bond was furnished at once.
President Kem issued the following official announce
ment from the company's main Office this afternoon
@To the Share BondhO1ers OF the Philadelphia and
Recalling Railroad Company mink IL que 10 az ID YER
prehensiOn should be felt in consequence or the appoint
nent OF receivers. the company having cheeIiutg nc
I'm the application for a receiyership, believing 1t
wise and prudent measure for the protection OF every
one owning either the stock or bonds or the company
Another matter, acted upon by the directors al tho
meeting this morning. was indicated in notice suDse-
queny put upon the door of the reasners oce 10 ne
effect that the coupons and interest due on June on nc
consolidated mortgage DoniS ,, dlIers ,yas formed
In the forenoon at lDrexe Co.'s and until half past one
there were only few persons who called for money
in the afternoon the receivers issued cIcular
making the formal announcement that the employees OF
the Oipanies would be retained Inc circular says
the certificates issued ny The railroad company
and the obligations tor supplies, materials ana LABOR
Issued N May by both companies will be redeemed 40
maturity by the receivers out Of the income OF the prop
ertieq All overdue wages OF both companies not yet
settled for by certificates VIII he pad III cs que
notice being given Of the times and places Of payment
THE DEFAULT NOT WHOLLY UNEXPECTED.
COMMENT N THIS CrrY-RELATIoNs or THE
READING AND THE JERSEY CENTRAL
The default of the Reading Company was
not wholly unexpected because many persons have been
cure that this would be the natural result OF ts TOO con-
ddent management. BY few or its opponents has u Deeh
supposed that recevershp again at hand although
bankruptcy practically admittedb the recentattempt
to pay Of its workmen in scrip The present
MANAGEMENT succeeded q heavy inheritance, Dut 10
sank under the burden little than general opn-
ion expected the breaking down. The default FOUR years
ago caused great excitement in the stock market Inc
nrices Of all stocks fell rapidly because the effect
Of the failure was not fairly estimated. The
second default had little influence on the
course of prices although the coal shares opened weak
and materially lower The Philadelphia stock market
opened an hour before the New-York Market ana per
haps this hour gave time for reflection to this MARKET
Tina stock opened here at D. although IL had sold In
Philadelphia at 1s in the previous hour and
its first price the lowest Ter the
dav Tie other coal shares naturally affected
and Jersey Central particularly declined to oZ2 L4cAa
wanna opened IO1 against lO3 on saturday Night ot
delaware and Hudson opened L higher at 3D. Inc cary
declines were generally recovered quickly Reading
closed over per cent lower than on SATURDAY
but Jersey Central was unchanged Lackawanna recoY-
cred an advance of per cent and Delaware and Hudson
rose 10 90 and closed at 97l The whole market was
strong however, in sharp with the general con-
/ dition when the Reading made its first deTaut
The interesting questions in Wall street yesterday were
not about the prices OF the coal stocks but whether
the bankruptcy OF the Reading road would ds-
turb the relations Of the coal companies ana emu
the lease the Jersey Central Railroad These inquiries
were not satisfactorily answered without dlcuiy' Inc
control Of the Jersey Central has been in the hands OF inc
Reading scarcely than year Indeed the TWO COM
NAMES were released by the almost simultaneously
and possibly for the accomplishment OF the lease
Borh companies have that the arrangement was
hlghv beneficial The Reading has reported cOn5tthg
profit from the operating OF the Jersey CeAtIa' V 80
officers OF that company boosted u inc Ihcre5seu
Z which tL had done. bb tuc vase Inv ieNoI
ny Con,n-rv az once controlled than one
half OF the anthracite coal production OF the
nv stopping work at the at certain times has Den
Aimed partly least, at the salvnH0n OF tle h5Puh
Company In addition 10 this argument OF seu-protso
/ ton there has been the fresh incentive Saat
/ William r. Vanderbilt largely Interested IN b0tl
| roads Within a few weeks it has been announced
| on the best authority tnat Mr. vanderbilt hao
Jersey Central stock which the Reading CouPtny n
on margin. generally with the banks and trust
IN Philadelphia. Il i understood that the recent tr1ns
rers OF Government bonds by Mr. V4nderD " MS son.
/ William X, made for the express Pur-
/ Gentral road Mr. Little president OF the
Centra Railroad of New-Jersey was not n the company
ont FOR the cOnpanys Interests under the lease vice
President John KeRn said IN reply TO the inquiries on
TRBt NE reporter How can Ut rb ee e Comn0nv
/ has paid tse rent under the lease ani
am inclined think that it will continue TO pay u even
in preference 70 the interest on us ms D.
The lease has benent 10 the Reading au II
Will not be surrendered until everything else mas oee
/ flow can we long az the rental Is
pa,dl We can do nothing even If we wanted To break
It, Mr. Little will be here tomorrow ,, .h. =, wa
Officers OF the leading coal companies said that H Wa
absurd suppose that the relations OF the conpaus
been changed by the bankruptcy or the Eeadlhg. a. u
Office of the Delaware and Hudson Canal Company vas
said the companies would Do strehgtheu.u i,
the Reading would not be forced now 10 geV do uucH
/ money as possible from its product. . -.
/ The Reading is a magnificent property" one OF Ihe
officers said and under good business MANAGEMENT
il woud do well. President Kelm had neaYy loau 10
carry, and unfortunately the eonduoos Oh Tue lHiL
! ket were against him. II 1t. had been a
boom year he would have carried the keading EIou5"
without trouble Mr. GOwen has looked TOO iaf alelI
The coal trade will take care OF ITSELF tIesce1V
Sloan, OF the Delaware LackaSana ana western sauu,
d" whether the Reading goes down or not ne p ooJ
NJ restriction has been carried far tnat cannot
he abandoned lightly. The season Is wen aoNaucSn ~"
and the curtang OF production thoroughly established
The failure OF the Reading wiz nave no eHe0' y" ~ P'
| lev adopted by the companies lilo. ., ,ho
The Philadelphia aud Reading owes no Sv ampIe