Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1893-02-24
The Great Railroad Down at
Last End Of a Gigantic
Deal.
Directors Meet and Surrender
Other Failures Follow
quickly.
President Mcleod, Chief Justice
Paxson and E. P. Wilbur
Appointed Receivers.

PHILADELPHIA. Pa. Feb. 2n.-The
most tremendous shock the railroads
and business circles of the East have
experienced III many years was caused
py the sudden announcement that the
Reading road was down at last Since
the great slump of Friday on the New
DIRK stock exchange traders hostile to
the road have predicted its speedy
! downfall, but there was still great con-
fdence among Philadelphia holders
that the weight of capital behind the
Reading would carry the roaG through
the crisis.
The strain was too much, however,
and this morning the management sue
cum bed. The attorneys for the road
appeared in court and asked that re-
celver be appointed to take charge at
noon. A. A. Mcleod, Chief Justice
Edward PaXson and e. p. Wilbur were
appointed receivers and the offices have
been turned over to them. The news
has caused a frenzy of excitement in
the city.
The collapse of the combine has
already caused d number Of failures.
In New York w. E. Russell and L. F.
Delaney, two big traders in the Con-
solldated Exchange, have gone under
Other smaller failures are reported.
The board of directors met at II
O'clock 1t was expected that state
ment of the pending difficulty would
be given out during the day, but the
rumors of receiverships were secuted
by friends of the road.
The excitement at the open
ing of the Stock Exchange this
morning was intense and almost
a panic prevailed, The first sale of
Reading was at IL. Il loss of 3 $ over
the closing quotations. Saturday. Fol
lowing this drop the stock steadily de-
clined and at 1915 was quoted at A.
The stock Of the roads allied with
Reading were also hammered down.
New England showed loss of 4 per
cent on the opening sale at 40, while it
soon dropped to 1923, Lehigh Valley at
53, d loss of l q per cent, and it dropped
in just twelve minutes to 4415.
While receivers for the tottering
railroad were being appointed in this
derbilt and Mcleod forces was being
fought to finish on Wall Street. The
slaughter of Friday and Saturday was
resumed at the very opening
of the exchange. Huge blocks
of Reading stock were thrown on the
market at the very start of business
this morning, and inside of twelve
minutes the price was hammered down
81 points, making total decline since
the downward movement of 16b
points. The transactions in Reading
stock for the first fifteen minutes were
233, 900 shares. Brokers were seized
with fear and panic prevailed
Traders almost went wild in their
attempts to unload and around the
Reading post there was wild strug-
Cling mass of panic-stricken humanity
Brokers tore at each other to get place
and dispose of their holdings. The
roar made by the frenzied sellers could
be plainly heard blocks away, and
people foclzed to the building to learn
what caused the uproar. Reading
stock was thrown upon the market
in huge blocks of from 1000 to 12,-
900 shares and was taken by the bears
at panic prices. During the first hour
half a million shares were disposed of.
No such scenes have. been enacted in
the stock exchange as were witnessed
this morning. The stock opened at SO.
1t dropped to 35, and each successive
blocl. offered caused fall. 1t went
down rapidly to 2019, but when the
last figure was reached slight reac-
ton set in and the price rose to 81.
The whole market was affected, but
there was little trading in anything
but the Reading.