Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1889-03-07

The RcndinE trom works Unable
90 Meet Obiigations-The Creditors
40 Meet.

Tho RcndfnE tron works Unable
90 Meet Obiigations-Fhe Creditors
40 Meet.
RnAp1Sa, PA, March 6.--Announce-
meat was made here yesterday afternoon
OF the failure OF the Beading iron works,
which operates in this city, blast fur
nacss, rolling, sheet, tube, and pipe mills
FORCES, and machine shops employing in
all over 2 500 hands. The firm has given
notice Of tine suspension of its payments
and called meeting of it's creditors TO
be held at the Philadelphia office Of the
company tomorrow afternoon.
II is one of the largest establishments
Of ITS kind in America and dispensss in
wages In this city every year over
S1.000,0O0. The first Judgment entered
hgainst the company wes by the Reading
Railroad Company for $140, 1000. The
cause Of the failure Ia generally sttrib.
uted to the stringent condition Of the
iron trade.
A director of the company said yester.
day that ut the meeting to be held to-
morrow shareholders will be asked 20
take stock or bonds in exchange for their
claims. He added that unless this was
done the company would be forced to
liquidate, and the creditors would then
get very little. The company has issued
$25n,000 first mortgages and $3.50, 600
second mortgage honds. In addition to
this, there is $500,000 Of preferred stock
and $500, GOO of common. The floating
debt is said to be heavy.
It was stated by Philadelphia bank
president that the company has sold q
large amount of paper within the last six
months, and that some Of the Philadel-
| mia banks are heavy creditors.
=. rhe works were originally owned by
| Seyfert, McManus & 90. The firm failed
| some years ago and the creditors then
organized and decided to continue the
business under the title of the heading
| lion Works. John Penn Brock was
elected president and Edward W. Colt
general manager. Mr.. Brock died about
eight years ego, aud was succeeded by
Mr.. Colt, who has since been the exeou-
tive head of the company. Shortly after
the organization of the company there
was some trouble, cauaed by buainess de-.
preston, and an extension was asked for
and granted. A portion OF the indebted
ness wss paid in cash and a portion in
preferred stock.
Dividends ON the stock have not been
paid for some time past. The company
continued to do business after the settle
ment wss made, and under Mr.. Colts
management enjoyed period of pres
perity, but dninesB In the trade and
shrinkage Of prices finally overwhelmed
1t.
A stockholder of the company said
yesterday II think that the plant is
worth 81, 800, 600. l do not know just
what our liabilities are. On January Is
the company had $500 600 of mortgage
bonds outstanding. A new mortgage for
$500, 0D0 was made, and bonds were
issued. or these $500,0 900 were issued
to retire the old bonds, and 800, COO to
acquire additional property. The com.
pany owns about 10 acres in this city and
valuable property in Philadelphia.
The liabilities are said to be about
81, 600, 900. or this 5000, 900 consists Of
) funded debt aud the balance, $500, 900, Il
due to various parties, mostly for ma
teriai purchased at various times.
:, The general belief here Ia that ihi
; Reading Railroad Company will ASSUME
control of the entire works as the prin
J cipal Judgment creditor; that 1t will issu
! stock or bonds TO the other creditors, EN-
: that it will then be run as q sort of join
stock concern. There are several rollin
. mills in this vicinity whose product
: controlled by the Reading iron works
: and these, it Is believed, viii smut 1d0W
o to-day.
n The nominal assets OF .h, company a,
,. reported to he about SO SOC, 900, OF whic
Is 81 500, 600 is in real estate and plant.