New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-02-09
THE READING AND THE DREXELS

THEIR roRMFP CLOSE RELATIONS SAID TO HAVE
REFN STRAINED TO THE BREAKING POINT.
PHILADELPHIA Feb. s.-"The Evening Telegraph"
saws: For some weeks m impression has existed In
financial circles that the rclons between The manage
ment of the Reading Railroad and the banhrg house Of
Drexel g. co. have become somewhat strained, and
that hereafter the Reading would have TO look else
where for the financial backing which In the past II
has been wont TO receive from the Drexes Is some
vo,rs now since the firm Of Drexel Go. first became
associated In the public mind with the interests OF the
Reading company. and until Il comparatively recent
date the relations between the banking house and the
railroad company have been Of the most Intimate
nature.
THE first in,imaon that these friendly relations
had become strained was tho outcome OF President
McLeod's now wellhnown policy Of seeking for new
worlds 10 conquer. His capture Of the Boston and
Maine Railroad regarded as move threatening
to the extensive interests Of the Vanderbis In the
New England states, and as the Eanderbits financial
representative Is none other than D. Perpont Moreans
II began 10 be nOiscd about that DreXel ~ 20. had
not been consulted upon the subject THIS impression
was confirmed when by sensational coup fresaent
Mcleod and his new associates secured the Connect'
cut River Line just it was about 10 be turned over
10 the New-York New-IIaven and Hartford Wander
bilt line i'm which Mr.. Morgan Is seavily inferesed
Il Is now no longer secret that the Reading ana the
vanderbs fighting battle royal IN the New
England States and II is not doubted that Mr. Morgan
a member Of the firm Of Drexel 4 Co., Is an acuve
participant upon the vanderbs' side.
But these are not the only Indications OF prcacn
between the Reading aud the Drcxels. when money
was needed recently 10 pay the Interest on 'as
preference Income bonds Il not Forthcoming IN
this city, and 1t was Messrs. Speyer d. Co.. OF Ne"'
York. who supplied the required funds. This announce
mcnt created a good deal OF SURPRISE as IL had beea
generally expected that the money wonId be ootahu
from Drexel Co., and It then began to be believes
that speyer & Co. would hereafter be the Readings
bankers.
Another indication Of the course OF events was
contained in the recent statement that the Reading
7 psr cent mortgage bonds, maturing next OCTOBER
would be extended for sixty five years Mt per cent
While II is not vet known with what firm the arrange
ments have been made for this extension IL can 10
positively stated that Drexel d 60. have nothing
whatever to do with II. To add 10 this comes tle
announcement that Dreye & Co. lave resumed theR
cd relations with the rcnnsy Raj road. For
long time the francng OF lines controlled by the COM
pany has been conducted through OTHER responsole
ilrns and the DreAels have had share In the ousl:
ness as they formerly did. Ii Is now announced tnst
Drexrl & Co. have Offered to exchange for the $100'
600 q per cent lOnds Of the Western Fennsylva
Railroad maturing IN April new mortcTgt A. OF the
same read taking the Us at par ard accrued Interest
TO April l. and charging lpl and accrued inter 81 or
The As. The Western Pennsylvania Is leased Line
Of the Pennsylvania systcm"