The morning call., 1893-02-22

THE READING TYPHOON.

The crash in Reading which has con-
vulsed Wall street is one OF the eataelysms
which are common in that exciting locality.
Reading is itself to the manner born. 1t
has been the Micawber of stocks; now in
the skies, prosperous. affluent. glorious.
now In the dumps, beggared and bankrupt.
The story of its vicssitudes would fill a
volume; had II been possible to incarcerate
a body polite it would have spent half of
its life in Jail. As to receiverships. 1t has
known so many that few remember the
names of all the receivers.
The Reading proper is short road which
runs from Philadelphia 10 CarbOn-about
as far as from here to Sacramento. 1t is
one of the oldest roads in the United
States. having been opened in 1888 to con.
meet the anthracite coal fields OF Pennsyl-
vania with Philadelphia by way of the
Schuylkill Valley. AS business PROPOSE
tion nothing could promise better than such
a road. Both the supply of and the de-
mand for anthracite coal we're practically
unlimited. and the Reading reckoned, not
unreasonably, on enjoying monopoly of
the transportation of the coal. Unfortu-
nately the very ad vantages Of its position
proved the cause of its undoine. 1t had so
much that 1t was always trying TO get
more. II started with 9S miles of road;
six years ago it was operating 1856 miles. 1t
began by carrying coal for other people; it
ended by buying mines and carrying its
own coal in opposition to its customers.
Forty years ago. the volume of loose capt.
tai in Pennsylvania was small. There were
no such fortunes as those of the Rookie
iellers, or the Camerons, or thelThompsons.
Thus whenever the Reading undertook
new extension or made now purchase its
finances were apt to be straitened, and
more than once it drifted into insolvency.
But the proposition that a coal road must
pay always brought new capital to the
rescue. Over thirty years ago. an Irish
dry-goods dealer named Gihon, who was
man Of wealth. undertook TO carry Reading
on his shoulders; 1t swamped him at
last Then a firm Of Scotch bankers in
London named MacCalmont-the house
which furnished the money for the Sutro
tunRel-bought Reading shares and bonds.
They had so much money that they could
not be swamped; but they had to buy
pretty nearly all the Reading there was be-
fore they could get out. To ennmerate the
New Workers who put their fortunes into
Reading and are looking for them still
would require many page.
Each catastrophe Of the Reading led to
reorganization, and in this way the origi-
nal modest capital was swelled to S37, co.,
600 Of stock and S12O.000,0O0 of bonds. In
1888 it swallowed the Central Railroad of
New Jersey. a concern larger than itself,
and in 1891 it effected a consolidation with
other coal roads and common carriers,
which swelled its capital TO far larger
figures. Even under favorable cireum-
stances II requires the very highest order of
ability to handle concern of such magni-
tude. Reading does not seem to have had
the ability at command. The consollda-
tions of 1891 and 1892 were in direct CONTRA
vention of law. a PENNSYLVANIA statute,
enacted for the very purpose of preventing
such monopolies as the Reading aimed at.
forbade the consolidation of competing
roads. The Reading set the law at def
anee, relying on its influence with the
courts TO secure its immunity. But while
the case was pending in court the corpora
ton was struck il vulnerable spot-in its
credit. A corporation which deals in hun
dreds of millions always has paper, and
vast amounts of paper. atioat. a day came
when rumors OF probable defeat in the
courts made It's scceptances unstable. The
result was then mere matter OF time. As
usually happens, the bears of Wall street
got early news of the impending danger.
They jumped on Reading stock. hammered
it till they produced q panic, aud the cor
poTatien. to keep the Sheriff at arms
length. had to get friend to apply for
receivership. In the general cataclysm
three individuals may be congratulated.
These are the receivers. Their legal fees
viii amount to a respectable fortune each
year. The Chief Justice of Pennsylvania
could well afford to step of the bench to
accept such post.
In the meantime. the most important re-
suit TO the public will probably be the
cneapeniug Of coal