Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-01-09
STILL IN SUSPENSE
Are the Holders of Reading First
Preference Income Bonds.
PRESIDENT GOBLIN CALLED DOWN
By a Party of New York Brokers Who Call
Him Several Pet Names.
A SHORT SUSPENSION OF HOSTILITIES

ESPECIAL TELEGRAM TO THK DIsPATcH.l
PHILADELPHIA, January S.-The hold
ers of Philadelphia and Reading Railroad
first preference income bonds are still in
suspense. The managers held brief ses-
sion to-day, and adjourned until noon to-
morrow without taking any action in regard
to the payment Of interest upon the
income bonds. There was a live
ly time at the general office Of
the Reading, for President Corbin had
some unexpected callers. One of the first
trains from New York, to-day, brought to
this city three prominent brokers who were
loaded for bear. They were Simon Worm
ser. of the firm of S. s. NJ, Wormser s.
Coz, which has large following Of
speculators among the Hebrews of New
York; Alfred Scully, a well-known capital
ist and speculative leader, and Mr.. Dow, of
the firm OF Dow, Jones & Co.
Hardly had President Corbin got seated
in his arm chair at the Reading general
Office until the trio gave him q surprise
party. The scene was a stormy one, and in
language quite free from verbosity, Mr..
Wormser told President Corbin that he was
a base deceiver, who had no regard for the
truth.
MR.. woRMsER's CLAIMS.
Mr.. Wormser asserts that within eight
dsvs President Corbin told him positively
that full interest would be paid upon the
first preference bonds, and upon the strength
of Mr.. Curbin's representation Mr.. Wormser
and his clients held on to the large blocks OF
Reading stock and income bonds which they
possessed, and acquired more.
After the heat of passion had passed,
President Corbin agreed to submit the books
and accounts of the company to Lindley
Smyth, President Of the Pennsylvania Com
pany Mr.. Smyth agreed TO
make the inspection at once, with
expert accountants. The mortgage provides
that the managers must pass upon the ques-
tion OF interest not later than January 10,
and it is probable that they will delay their
action until Mr.. Smyth completes his ex-
animation and reports to MesSrs. Wormser,
Dow and Sully. as representatives Of the
Junior bondholders
II Mr.. Symth's report regarding the
amount of earnings and the disposition of
them is satisfactory to the New York
brokers, that will probably end the proceed
ings, but if the report indicates that ex-
penditures were made which ought to have
been paid for by the issue of new bonds,
strong effort will be made to induce the
managers to revise the application of earn
ings and pay something as interest upon the
first income bonds.
ALL GONE HOME AGAIN.
Messrs. Sully and Dow returned to New
York about O'Clock, but Mr.. Wormser
remained two hours longer, and had long
consultation with Spencer Erwin, of Erwin |
& Toland, who have been prominently
identified with all movements against the |
Corbin administration.
1t is said that one result of to-day's con- |
ference will be to present protest at the |
annual meeting, to be held next Monday, |
against the reelection of President Corbin. |
The election will be controlled wholly by |
the voting trustees. Everyone familiar |
with Reading affairs believes that the action |
of the managers in refraining from |
declaring interest upon the first preference
bonds is in accordance with the wishes of |
Drexel & Co. As Drexel & Co. were in
strumental in securing the voting trustees,
it is almost useless to protest against the
reelection of Mr.. Corbin. who is carrying
out the will of the influential banking
house.
While it is believed by many that the
policy of the managers in charging expendi-
lures for construction to the expense ac-
count is unfair to the income bondholders,
all admit that the junior securities and the
stock will ultimately be benefited by it, be-
cause the fixed charges are not increased
and the earning capacity of the road is i'm
proved.