New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-03-07
TILE FAILURE AT READING.
/ HARDSHIP FOR HUNDREDS OF WORKING
PEOPLE.
LOST INVESTMENTS IN THE TEXAS PACIFIC
RArnRoAD AND IN KANSAS LANDS
JUDGMENTS ENTERED BY TIE
nEApINe coMpANY.
ar rtLEaRArH 10 rIlR TnnuNE.

Reading Penn, Maroh s.-The effect Of the
failure Of the Reading Iron Works on the indus
tries OF this region Is more widespread than was
supposed Besides using its own output the
company consumed the product OF three or four
rolling mills. Its daily consumption OF coal kept
a small philadelphia and Reading colliery going
Il obtained some OF its iron orc from the mines
along the East Pennsylvania Railroad. Several
furnaces In the Schuyilsill Valley shipped large
quantities Of iron to It's mills IN this city 1t is
estimated that 10000 TO 10000 persons depended
for subsistence upon its $500 employees in the
mills in this city alone. The rolling mills at
Gibraltar and Naomi IN this county furnished
considerable Of their product to the Reading Iron
Works. Both of them were closed to-day for
want of orders Tho Keystone Rolling Mill OF
this city sold It's entire output to the iron works
This mill also stopped work this forenoon, because
it had no Anore orders These three mills en-
ployed between 600 and 700 hands In this city
the creditors ore numerous, and include business
men who furnished lumber, lime, bricks iron ore,
etc. The company purchased these materials on
four months credit All the company's paper held
by the banks here is we'll secured.
The immediate cause of the suspension is the
refusal OF the Reading Railroad Company TO give
the iron works any more credit for coal and
freights. A representative OF tho railroad com
pany stated here today that instead OF paying
of its obligations the iron works went on
increasing its debt by extending It's plant instead
Of esncelling It's obligations Several days ago
George F. Baer, Of this city, and George De B.
Keim Of Philadelphia, asked President Corbin, OF
the railroad company, in behalf Of the iron works,
for further loan OF 100000. This, President
Corbin refused, since the railroad company already
held 100000, preferred stock, and was judy
ment creditor to The amount Of $4,000. The
failure then took place The close business
relations Of the two corporations make 10 probable
that the iron works will pass into the hands
Of the railway company, and the other creditors
viii be paid partly in cash and partly in stocks
or bonds OF the concern.
The rolling mill turned ont annually 1000
tons; the plate MILL 10000 tons, ond the blast
furnaces, 10000 tons gentleman connected
with the iron works stated to-day that besides the
5000, 900 mortgage still on tho property the other
liabilities were nearly 81 100000, including the
preferred and common stock and payable accounts
As 20 the INSECTS he stated that tho value OF iron
works varied according TO duh or Dusy season
II the market Is dun, aS az present So iorcfT s
he thought wouid not bring S5OQ,0Ou, Hple IN
the hight OF their best season, the st9ckhpiners
would not have sold out for s., 0oO,oOO MIR
value Of the property Is s., Oeo, geo. ...as IN.
I.
falen or IL is leerned here that their orders Ior
pipes from the oil regions havo dwlnoled away
The same u the case with orders for ice macnlnes,
supae mills and cotton presses, wnlch Wete
formerly sent thron ghout the South.
After the War the corporation had large sums i
of money and the scheme OF building rnlhoau
from this city 10 Philadelphia was seriously CON
sIdcSed but that was abandoned and hrgs1 , lI-
vestment was made in the Texas Paenc; I'M, nv
vr,,s a loss Another ruinous investment was INC
purnhhse OF n large block of land III Kansas, WHICH
was afterwRrd sold OF heavy iosS
philadelphia. March 9 Special. I'm the Court
NJ Common Pleas this morning the Phtiadelphia
| and Readina Railroad Company entered two tudg.
| mef,ts against the Reading Iron WORKS, ono ioi
$4,000 and one for 81 100000. Both were on
transcripts from Besks County; Fne directors .,
| tha pc.siing Ifon Company hrld eoeret Tnoetins
| NJ 220 South Fiftlfst, this city, this aticrhoon
After tho meeting an officer Of the company sala
All newspaper statements % 20 sas Tier,
hos been nothing said by my one on Ihc suyleeo
hecanse the exact flgures are not known even here
Tho directors ere now looking into the aiialrs .
s ns %U viii be made. f is absolutely certnir
,hat mo intinntion rs 20 the condition OF nual'
| Will be given out before TINT time
| In Third Street and other railroad ana IRON CIR
clos this afternoon IL was reported that the pan
4 settlenent would be that tho creditors should
! fund their claims taking proportion IN secooc
| mortgage and the balance In prem Erred STOCK
Opposition Is expected from the banlts, when WI
| not care 10 tie up their money, but compfomis'
| is expected.
Mr.. pancoast, Of Panooast Rogers, Ne~-Yori
agents for the Reading Ion Works, has returned from
Reading lie reports thas The president and treasure
arc hard AZ work. AS the meeting of the creditors
ocears on Thursday statements OF the condition OF th
| compaDy's Affairs are being prepared. Among tn
| unsecured creditors the Reading Railroad Compan!
/ holds the largest claims against the company and
"a In their interest that tho business should continue
4 The railroad company also holds stock TO larg
| amount In the iron works and two OF the direction
| OF the railroad are also directors OF the iron works
Mr. pancoast also says that the action OF the creditor
| will undoubtedly DO harmonious and II Is cortal
that the company viii not be forced into Insolvency
but that they viii be permitted to continue business
| In his opinion II wonh be folly not 10 go on, a
the company now has large contracts for tho manu-
fncturo OF cotton presses pigTOn ard other articles
IS TIC debt OF tho American Lilo Insurance Company
Amounting 10 Seo0,0o0, is amply secured they are no
likely, Is said TO oppose the unsecured creditors
WORKING on THE PROPOSED coRN PABAol
Members OF tho Produce Exchang', especially III
committee appointed 10 receive subscriptions towar
making ereditable exhibit Of tho cereal products Q
the country at tho Paris Exposition, were in an "a
nltant frame OF mind yesterday on learning that tn
| management Of the Exposition had consented to gle
| space free OF charge for the American Corn Palac'