The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1889-03-06

The Reading Iron-Works Company Suspends
Payment-2,5OO Men Deprived of Work.

Ine Reading lrOn-W Orks COMPANY Suspends
Payment-a.5OO Men Deprived of Work.
READING, Pa, March 5.-The announce
ment is made here this afternoon of the
failure of the Reading iron-works, which
operates in this city blast furnaces. rolling.
sheet, tube and pipe mills, FORCES and ma
chine shops, employing in all over $500
hands. The firm has given notice of the
suspension of payments, and called a meet
ing OF it's creditors, to be held at the Phila-
delphia Office of the company next Thurs
day afternoon. 1t is one of the largest
establishments of its kind in America, and
%dispenses in wages in this city every year
over 81, O00,0 00. The first judgment entered
against. the company was by the Reading
Railroad Company for $4,000. The cause
to the stringent condition of the
iron trade. President Colt, of the
Reading lron-works Company. when
seen at the Office of the company. in
this city, admitted that the company had
suspended payment, but declined to make
any statement of assets and liabilities. 1t
was said that a list of the creditors is now
being prepared. Many of the stockholders
OF the company are Philadelphians.
NEW YORK, March 5.-The Reading iron
works, which failed to-day, had a paid-up
capital of 81, 05O, 900, and was rated by Brad
streets at over a million dollars. Pancoast
& Rogers are the New York agents, but
they knOw nothing about the failure, ex-
cept what is contained In the following
printed circular, which has been freely dis
tributed among the trade:
PHILADELPHIA. March 4, 1889.
You are hereby notified that the Reading iron.
works this day suspended further payments and
that a meeting of the creditors of said company
will be held at the Office of the company, Nos.
220 and 222 South First street, on Thursday.
March 2, at p. NJ, for the purpose OF ticking
such action as may be deemed advisable. BY or
der of the board. SAMUEL ID. HOPKINS.
A director of the company said this after
noon that, at the meeting to be held ON
Thursday, shareholders will be asked to
take stock or bonds In exchange for their
Claims claim s.. He added t that III unless f6rs.d thus 9n ,;U %as
date, and the creditors would then get very
little. The company has issued S25O.OOOfirst
mortgage and $4,000 second mortgage
bonds. In addition TO this there is s5OO,W0
of preferred stock and $4,000 of. common.
The floating debt is said to be heavy. 1t
was stated this afternoon by a bank presi-
dent that the company has sold a large
amount of paper within the last SIX months,
and that some of the Philadelphia banks
are heavy creditors. There are three roli-
ling mills. a steam forge, a large machine
shop and foundry, a rail-works, and one or
the largest pipe and fiue millsin the country.
The works were originally owned by sey-
fort, McManus d Co. The firm failed some
years ago. and the creditors then organized
and decided to continue the business under
the title of the Reading Iron-works. John
Penn Brock was elected president and I'd
ward w. Colt general manager. Mr.. Brock
died about eight years ago, and was
succeeded by Mr.. Colt, who has
since been the executive head OF the
company. Shortly after the organiza-
ton of the company. there was
some trouble caused by business depression,
and an extension was asked for and grant
ed. A portion of the indebtedness was paid
in cash and a portion in preferred stock:
Dividends on the stock have not been paid
for some time past. The company contin-
ned to do business after settlement was
made. and, under Mr.. Colts management,
enjoyed a period of prosperity, but dull1ess
in the trade and shrinkage in prices finally
overwhelmed il. A~stockholder OF the COM
pany said this afternoon: Il think the
plant is worth S1,5O0.0O0. L do not know
just what our liabilities are. On Jan. l the
company had $4,000 of bonds outstanding.
N $1,000 o additional were issued. OF
these, $780, 600 were issued TO retire the old
bonds and 100000 to acquire additional
property. The company owns about seven
ty acres i'm Reading. and valuable property
in Philadelphia. We did a large business.
and two wears ago were in very good con-
dition. We put our money into the bust
ness as fast as we made il. A large bust
ness was formerly done in piping natural
gas wells, aud this has fallen on considera-
bly, during the past year"
The liabilities are said to be about ST.
100000. OF this. 100000 consists OF funded
debt and the balance, 100000, rs due to
various parties, mostly for material pur-
chased at various times.