The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1893-02-21

bonds, for the appointment of a receiver
Tor the road. The petition was granted,
and A. A. Mcleod, president of the COM
pany, E. P. WILDER of the Lehi Valley
state supreme court, have been appointed
receivers in bond of hall million.
Judge PaXson has forwarded his res
ignation as chief justice to the governor.
The security of each receiver is fixed at
half million. 1t is said a similar bill
will be filed in Trenton, n. J. The bill
in equity says the complainant brings his
bill on behalf OF himself and all holders
of lands of like character. The bill, which
is extremely lengthy Invested OF its legal
verbage sets forth the issuing by the
Reading company in July 1888 of pre-
ference income mortgage bonds which are
now in excess of S25, 000, 900, to be payable
January 1858 and with interest payable
out of the net earnings of the railroad
company of per cent. per annum, pay
able the first of FEBRUARY OF each year.
The bonds are secured by certain mort
gage executed by the Reading Road and
Reading Coal and Land company to the
Pennsylvania company for assurances on
the lives and the granting of annuiuies OF
this mortgage conveyed subjected to GER
| tain prior encumberances, of all the prop
critics leased and controlled by the Read
ing company and those it might there
after control. Also all the properties of
the Coal and Iron company.
Mr.. Platt sets forth that he is the holder
of large amount of these bonds, interest
upon which became payable on the LIST
day OF February last. Demand was made
by the complainant upon the railroad
company to pay him said amount, which
was refus ed, and the company has failed
up to the present time to pay him any
portion of the amount which became due
and payable on the 1st of February, and
interest upon other bonds of said issue
held by other owners remains unpaid.
The Pennsylvania company has refused,
to foreclose the mortgage. The
bill sets forth that great
income can be derived from the opera
tions of the Reading railroad and Coal
and Iron company and that it would be
disastrous should the business of either
be temporarily suspended. A large
amount of this income is now in posses
sion, or under control, of those compan-
les Justly applicable to the payment of
interest, but the companies have refused
to appropriate this income to such pay
ment and threaten to apply the same to
payment of unsecured Indebtedness. The
bill asserts that the companies, though
possessed of ample funds, if the same
were iudiciously administered, to pay all
Indebtedness, are insolvent in the sense
that they are without funds in the shape
of cash or assets convertible into cash
sufficient to pay their Indebtedness actu-
ally matured or to mature in short time.
The bill sets forth the vast extent and
value of the properties and says the rail-
road company owns all the stock of the
coal and iron company and that the oper-
atoms of the two depend largely upon
each other There is imminent danger,
the bill asserts, of the property being
levied upon, attached and disintegrated
to the irreparable injury of the creditors
unless the court takes action. The pres
ent condition of the com pany is stated to
be largely the result of demands of loans
for which ample security is pledged with
the lenders, but which loans the holders
thereof at the present time are unwilling
to renew, The complainant prays that
the rights of holders of third preference
bonds be defined. The Pennsylvania
company is required to institute proceed
ings, to have receivers appointed, etc.
President Mcleod said this evening that
he would prepare a statement, but did
not say when. President Earle of the
Finance company of the Pennsylvania
and commercial agent for the Reading
road, said this evening: ttThe Finance
company has from $1,000, 600 to $40, 900, 600
worth of Reading coal on hand, upon
which no advances have been made. -
This amount, he declared, was enough to
pay the Reading floating debt twice over.
''The present difficulty he said, twas
due to every body demanding his money
at once, which was unnecessary, for the
company was able to pay its debts.