New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-03-06
READING IRON WORKS FAIL
BELIEF THAT THEBTG PLANT WILL BE RUN
BY THE RAILWAY COMPANY
pnBD HAHAssrNe srRIKEs AND DUrh TRADE
CONTRIBUTED TO THE ooMPANY's DOWNS
TML-MoRr THAN 1000 MEN, PROB

CONTRIBUTED TO THE coMPANY's DOWN.
RAIL-SsoRr THAN 1000 MEN. PROB
ABLY oUT OF EMRLoYMENT.s
Isr rEIEeaAPH TO THE TRnusn.l
! keaifna. March 5..-A sensation was created in
financial circles to-day when the announcement
was made Of the faffze Of the Reading Iron Works,
one Of the largest iron establishments IN America.
The first intimation which the creditors had of
tne 1ailare was the reception OF notice from the
corporation. reading as follows;
Yen Are hereby notified that the Reading Iron works
this day suspended further payments, and that meeting
OF the crs Of said company win be held at the ehee OF
the eompiay Nos 23o and 22 South Beurthst Phila
dspha Pehn on Thursday the TN Of March, at D. M
for ne purpose of tang such action mag DO deemed
| advisable
This was followed by the news that judg-
nent had been entered in the Prothonotarys Office
here against Gfe corporation by the Reading
Railroad fer $4,000 The $4,000 is In two
judgments, one for 500, 600 and the other for
$4,000. and both are on notes dated March i.
1851 payable one day after date. The repre-
sentatiyes of Che Judgment creditors came to this
city last evening IN great haste. The Prothono-
tarys ohlee was already closed, but they hunted
| up Deputy Prothon0tary Burkey and called him
out Of bed. and they went to tho Office and had
| the judgments entered. The Judgment IS as far
reaching ss a bianlrst mortgage as IT covers every
thing and in ths opinion Of weH-informed men, the
present sop win result in the closing OF the
Haading Iron Works and transferring the big
plant to the hands of the railway company The
American Life Insurance Company Of
Pmladelphia held an indebtedness Of
| H,ooo,ooo against the iron works up
70 January 1, when the old mortgage was can
ceIhd. 100000 having been paid of and a new
l ncFfpnOA Thia indahkfd0R9q
gave the company no concern; but other
maturing obligations were in the way which
caused the suspension. At that dme It was stated
that the firms single paper sold readily at per
cent that the affairs of the company were being
| run economically, and that with o good year
| money would be made The company has sold a
large amount Of paper within the last siS months,
and some Philadelphia people are heavy holders.
The psid-up capital stock Of the osmpsny Is
| Si,05o,0eo, and tho surplus sea-, 700.
Recautly the management undortodk TO reduce
| the running expenses By general reduction Of
wages and cutting down the number Of minor
bosses in cha various departments Of the mills
| Ono of the constant drains ON the treasury has
been the big salaries Of the officers The pres-
| dent E w. Colt Of Philadelphia, got $4,000
| O year Other officers each drew say 500 and less
| The company employs nearly 1000 men, and
there Il o probability that they viii be thrown
| temporarily cut Of employment, unless some
arrangement rs made at the meeting on Thurs
| day by which the Judgment creditors are salts
fed. The Judgment represents q portion OF the
| money which was advanced the IRON oompauy by
| tho railroad company. There have been times
when tbs company has employed 5000 hands
| Only q few months ago there were 2rb0o on the
/ payroll A year ago q tube mill costing
4 aaa A..sNA Tluufes baa
/ been vry dun for some time, and o membcr
x tss firm stated today thas tAs works had
been Kept in operation upon contracts taken at
1 vnry low and at times unremunorative prices;
that outside competition had driven down prices TO
| ruinouSly low rates. and that In view OF oil
these facts the firm determined TO suspend
payment
Notwithstanding the reported decrease in the
| deb6 the company Is said to have lost $4,000
| last year. II is also said that ths erection
| Of the new tube min resulted In loss. IL has
never run steadily the orders not being sufficient
10 keep it going. The erection Of the plant was
begun in .lSas and at tha time Of Of
its suspension the eSrpoSSnihSn pih tvc Upc15a StSsi
furnaces, q rolling mill, sheet MIL
! several forges, foundrieE machine shops, etc,
| Tho works turned out sugar and o9it29, presses
for the South, tubes and pipes OF al hnqS and ana
| some of the largest bar iron in America. A great
many oannon wore MAJ nufactured here for the Gov
ernHent during the war. From $500, 1000 10 sl,OgQ-
| eftv. The firm also owns large tube works OF
| Camden H. J., and its products were sent so
every portion IL this country and foreign lands.
RsystoDe Rsass @ RosS % 6 iVaf Of this Oft city, and the bra
tar Rolling Nil below, Reading. The firm has
! been greatly haTAsSed by strikes recently, and
this conbuted to Sssr % dPwniS b1aSas ~ rEs tae
| and thero is also trouble at the pipe mill, some
! OF tho tocket-makers quitting work because
Polandcrs wee employed in place OF the socket
able Oh tfis foreign labor was employed The
! property OF the firm is believed to DC worth not
| less than 100000,
! ing Iron Works Company said to-day that at the
| meeting to be held on Thursday creditors VIII
b S to take @ oS5sS q @ uess ~ th5g wSs sSs
| done. the company would be forced to GquHete,
| and the creditors would the9 get little. The
company hes issued se6o,ooo trst mortgage aaa "a
| $500, 600 Of common. The, 1catng debt ls said
70 b heavy II was stated TINS SI'f5aoon Sas 90
Ssgs 1as gesats1 y aper sNss Wn s Ss et x mon
| and that some Of the PHILADELPHIA banks are
heavy ssssieOF hS wG'S z Sc fEs ar% sf ed
s3me wears ago. and the creditors then organized
| and decided to continue the business under the
ttls of the Reading EGa wosS sIS FaT@rd w w
Colt s general manager. Mr. Brock disa aeoat eos.
| eielIb Years ago, and was succeeded BY Mr Celt
who fas since been the executive head OF he
company there was some trouble caused Ty pdsr ~.
ness depression and on extension was ss1en IVr
and granted. A portion Of the fndePtednsss was
| Maid Ia easb and portion In preferred stock.
| Dividends on the stock have nct Deen p''io ior
The liabilities sre said to be about y, GOO 'ooo;
| OF this $500 000 consists OF fundeq leos sn anu
the balance, 100000, Is due 70 VArigus pstsss
mostly FOR material purchased 10 V@ri0us Oe'
THE FAILURE FoREsHADoWED.