St. Paul daily globe., 1893-04-22
COULD NOT GET CASH
The Pennsylvania Steel Com
pany in the Hands Of Re-
ceiveps.
Stringency Of the Money Mar
ket the Cause Of This Ac-
ton.
Liabilities of the Company
Largely Exceeded by the
Assets.
The Works Has Orders Enough
Ahead to Run Four
Months.

PHILADELPHIA, April 21.-Receivers
were today appointed for the Pennsyl-
vania Steel company, which has eX-
tensive plants at Steelton. Pa, and
Sparrow's Point, Md. Luther S. Bent.
president of the company, when seen,
said the appointment of receivers was
not the result of any want OF profitable
work at both Steelton and Sparrow's
Point. 1t was simply caused by the
present unfortunate condition of the
money market. The company had been
for some time past large borrowers for
the purpose of completing their Spar
rows Point works, and also for the eX-
tensive alterations and Improvements
at SteeltOn, and. owing to the existing
dlstruSt in financial circles, it became
apparent that many of their maturing
obligations could not be renewed. 1t
was to the interest of all, therefore, that
the affairs of the company should be
placed in the hands of receivers. The
GiraId Trust company, being the trustee
on the mortgage, was selected as one of
the receivers. The other receiver is
President Bent. The appointments
were made by Judge Pennypacker this
afternoon upon application Of Alfred
Earnshaw and E. Robert Cox, creditors
of the company.
The company is capitalized at S., 000,-
600, of which 81, 500, 600 has been paid in.
At the close of the stock market yester-
day Pennsylvania Steel company shares
sold at S120, but today they were offered
at 500. the par value, with no bids.
The debt Of the company amounts to
S4,000,000. and the secured Indebtedness
is 81, 200. 900. The plants and machinery
are valued at S5,000,000; the accounts
receivable aggregate 81, 800, 900, and The
stock OH hand is worth S2,000,000. The
company does business of SS,000,000 a
year, and 4, 400 men are employed. a
large amount of the liabilities will soon
mature.
A Receiver in Maryland.
BALTIMORE, April 2l.-A receiver for
the Maryland Steel company was APP
pointed by Judge WickeS today. f. W..
Wood. president OF the company, was
named, and Immediately filed a bond
for S500000. The announcement caused
a sensation. The first intimation of
trouble came through letter from
President Wood to the creditors of the
Maryland Steel company this morning:
1t said:
lowing to the difficulty of negotiating
our securities in the present financial
condition of the country. it has been
thought wise in the interest of all con-
cerDed. that the affairs of the company
be temporarily placed in the hands of
receiver. The assets of the company are
believed to be more than ample to pay
creditors in full. There will be no in
terruptioD of the company's business,
and as soon as our abundant resources
can be made available, all obligations
will be fully satisfied"
Excitement at SteeltOn.
HARRIsBURG, Pa, April 81. - The
news that the Pennsylvania Steel COM
pany had gone into the hands of re-
ceiver created the greatest excitement
at Steetton, where the company has
about 1000 men employed in its extern
sive plant. General Manager FELTON,
says the receiver was appointed as a
measure of protection TO the stock
holders, and that the company has
enough orders ahead to keep the great
works in operation at least four months.
Tomorrow will be semi-monthly pay
day, and more money Will be paid out
than at any time in the recent history
of the company.