The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1889-03-06
MILLION DOLLAR FAILURE
THE READING (PA.) IRON WORKS
SUSPEND OPERATIONS.
The Assignment Is Brought About by a
Judgment Obtained by the Reading
Railroad Com pany Stringent Con-
ditions OF the Iron Trade the Cause.

ditions OF the Iron Trade the Cause.
READING, Pa, March 5.-Announce-
ment is made here this afternoon OF the
failure OF the Reading Iron Works, which
operate in this city but as the furnaces,
rolling, shoct tube and pipe mills, forges
and machine shops, employing in all over
9, 800 hands. The firm has given notice Of
the suspension OF its payments and called
meeting OF its creditors TO be held at the
Philadelphia office of the company next
Thursday afternoon. II is one OF the larg-
est establishments of its kind in America
and dispenses In wages in this city every
year over 81 100000. The first judgment
entered against the company was by the
Reading Railroad Company for $4,000.
The cause OF the failure is generally attri-
buted 10 the stringent condition Of the
iron trade.
President Colt OF the Reading Iron
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
aud liabilities. 1t was said that a list OF
the creditors is now being prepared.
Many OF the stockholders OF the company
are Philadelphlans. The works had a
paid up capital Of Sl,050,Oo0, and was
rated by Bradstreets at over Sl,000,00O.
Pancoast & Rogers are the New York
agents, but they know nothing about the
failure except what IL contained In the
following printed circular, which has been
freely distributed among the trade:
"PmLADELrniA. Pa. March 4. 1859.
"You are hereby notified that the Read
ing Iron Works this day suspended further
payments, and that a meeting OF the cred
| itors OF said company will BIO held at tile
office OF the company, Nos 220 and 222
South Fifth street. on Thursday, March Z,
at o'clock p M, for the purpose Of taking
such action rs may be deemed advisable.
BY order OF the board.
"SAMUEL ID. lloPRISs."
Adircctoi OF the company said this after
noon that ut the meeting to DO held on
Thursday shareholders will be asked to
take stock or bonds in exchange for their
claims. lie added that unless this was
done the company would be forced to
| liquidalc, aud the creditors would then get
very little. The company has issued $50,
600 first mortgage and $4,000 second
mortgage bonds. In addition 20 this there
Is 500, 900 OF preferred stock aud 500, 900
Of common. The floating debt is said to
be heavy. IL was stated this afternoon by
a bank president that the company had
sold a largo amount OF paper In tho last six
months, and that some OF the Philadelphia
banks are heavy creditors.
About 800 men are employed In the
works At Reading. There are three rolling
mills, steam forge, a large machine shop
aud foundry, rail works and ono Of the
largest pipe and iluo mills In the country.
| Tie works were originally owned by Sey-
| fcrt, McManus &Co. The firm failed some
yearsago, and the creditors then organized
and decided 20 continue the business
under the title Of the Reading Iron Works.
John Penn Brock was elected president
aud Edward w. Cole general manager.
Mr.. Brock died about eight years ago, aud
was succeeded by Mr.. Colt. who has since
been the executive head OF the company.
Shortly after the organization OF the COM
pany there was some trouble caused by
| business depression, and an extension was
asked for aud granted. A portion of the
| Indebtedness was paid In cash aud por-
| ton in preferred stock. Dividends on
the stock have not been paid for some time
past. The company continued 10 do busi-
ness after the settlement was made,
aud, under Mr.. Coles management,
enjoyed period OF prosperity, but dullncss
In the trade and shrinkage la prices final.
~ overwhelmed H. A stakeholder OF the
company said this afternoon: II think
that the plant Ia worth Sl,5OO.0OO. 10
not know lust what our liabilities are. Ga
January i, the company had 500, 900 o
mortgage bonds outstanding. A new
mortgage for 500. OOO was male, and
bonds were issued. OF these 5000
wcro Issued 10 rctirc the old bonds and
SlOO, 900 10 acquire additional property
, The company owns about seventy acres IN
Reading and valuable property In thi'
city. We did large business and two
years ago were In very good condition
We put our money into the business a.
fast "a we made II. large business wa,
formerly done In piping natural gas wells
and this has fallen OIL considerably durinI
the past year"
Tho liabilities are said to bc abou
Si,OOO,OOO. OF this S6OO,0O0 consists o
funded debt, aud the balance, 500, 900, 1
J.. due TO various parties, mostly for materia
purchased nj various times.
AZ the tune Of suspension Of payment
today by the Reading Iron Works all Il
I Establishments In ~ g,ly were In opera
y ,iou accepting the Sheet mill, where 25
men have been idle week because Of
strike among the puddlers' help.
The general belief here tonight Is tha
h the Reading Railroad Company will ~
J. sumo control Of the entire works as III
" principal judgment creditor that Il wi
Issue stock or bonds 10 the other creditor
aud that II will then DO run ~ a sort
Joint stock concern. There are sever
rolling mills In this vicinity whose produl
Is controlled by the Reading Iron Work
n and these, II Is believed, will shut dow
tomorrow.
Tho company's liabilities have not y,
been ascerlaincd. Its assets consist Of II
plant Ia this city, which Il worth over 81