The Van Buren press. [volume] (Van Buren, Ark.) 1859-1914, 1893-02-25

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NEW York, Feb so-The Philadel-
phia & Reading railroad is in the hands
OF receivers Its credit and its power
in the financial world are gone. and the
ownership OF its panic blown. widely
scattered stock is unknown The rise
and fall Of one Of the most extensive
and ambitious railroad combinations
ever attempted are embraced in the
comparatively brief period Of one year
and . fortnight
II was just year ago this month
that the fcrmatiou of the great Read
ing-Jersey Central-Lehigh Valley alli-
ance was publicly announced. Rail-
road men and Wall street financiers
were surprised and impressed with the
magnitude Of the combination In
mileage. it was the largest railroad
system in the east and its ownership
OF coal mines made It apparently the
arbitrator of the coal markets Of the
country.
The hand of J. Pierrepont Morgan
wasfrankly disclosed in the new COM
bination and the prestige Of his name
added much to the public confidence in
the stability of the statement Never
did such an enterprise start under
more favora BILE conditions ecnserva
tive men in Wall street were inclined
to believe that the unfortunate and
much-buffeted road was at last to be
guided into the haven of solvency.
Archibald Mcleod was hailed as the
savior of the Reading and praised as
the coming railroad magnate of the
world. His simple declaration of what
he intended to do was popularity ac-
cepted as the statement of thing ac-
complished- Mr.. Mcleod has not been
incident in his high estate His brief
career as president of the Read
ing system has been marked BIZ
an uncommon exhibition of activ-
ity. energy and personal self-reli-
ance- His administration forms a
unique and theatrical chapter in the
history of American railroads The
dissolution Of the Reading combination.
which eliminated yesterday. was begun
by the opposition of the New Jersey
authorities and the courts to the for
nation of ceal trust Although Mr..
Mcleod and his associates pooh-poohed
that opposition for awhile, they finally
had to give way to it. and complete
severance Of the relations between the
Reading and the Jersey Central was
announced.
The facts relating TO the Readings
incursion into New England. the series
OF brilliant moves which apparently
placed the new Poughkeepsie bridge.
the Boston & Maine railroad, the New
York & New England railroad and the
Connecticut River railroad in the con.
troll of the great combination, are still
familiar events in the public mind. It
was this New England extension.
which practically was a declaration of
war against the powerful New York,
New Haven & Hartford railroad cor
poration. that caused the successive up
rising of obstacles over which Mr..
Mcleod has been stumbling for the
past few months. BY invading the ter
ritory of the consolidated system he
antagonized strong financial interests
represented by Drexel, Morgan & Co..
which at the outset had been a most
powerful hacker The relations be-
tween Mr.. Pierrepont Morgan and the
Reading management at once became
strained, and it was not long before
Mcleod found his feet slipping off his
financial basis.
The Philadelphia syndicate who were
carrying the stock of the Reading COM
pany found themselves overweighted
with rapidly acquired subsidiary prop
critics in New England and elsewhere,
and the need Of more money was felt
Heavy obligations approached ma
tnrity, and some quick returns had TO
he made to escape direct default The
resources of Mr. Morgan were no
longer interested in protecting Read.
ing's credit if the earnings failed to
come up to his expectations, and
the prestige of the Reading com bina-
ton began to fade. Quite naturally
the heavy selling of Reading shares in
the stock exchanges here and at Phila-
delphia last Friday and Saturday. and
the rapid decline in prices suggested
financial weakness on the part of the
mana cement Of the property. All
doubts on that point were removed
yesterday when it was learned that an
application had been made to a Penn
sylvania court for the appointment. of 3
receiver.
Receivers Appointed.
PHrLADELPHIA. Feb. 21.-A meeting
of the board Of directors Of the Reading
4 Philadelphia company was held and