The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1893-02-21
'TWASA GREATSURPRISE
1 Receiver Appointed for tho Big
Reading System.
WHAT THE COMPLAINT AYERS
No Ready Cash the Cause OF the
Movement-An interesting
Story From
Boston.

PHILADELPHIA, Feb. 20.-Application
for receiver for the Reading was made
In bill In equity fled by ono Of tho
stockholders late this afternoon. Tho
security Of each receiver is fixed at $780,
600. 1t is said similar bill will he filed in
Trenton, N. J. The bill in equity, says
tho complainant. brings his bill in behalf
OF himself and oil holders Of bonds. Tho
bill, which 10 extremely lengthy Invested
of the legal verbiagc, sets forth the issuing
by the Reading company in January, 1883
Of third of it's preference income mort.
gage bonds, tho amount OF which is now
In excess Of so5,0oO.0Oo, TO be payable In
January. 1858, and with interest payable
out Of the net earnings Of the railroad
company OF per cent. per aunum, pay
able the ist Of February Of each year, tho
bonds TO he secured by certain mortgage
executed BY the Reading road and tho
Reading Coal and Land company To the
Pennsylvania company for assurances on
lives and the granting Of annuitics; this
mortgage conveyed, subjected 10 certain
prior cfsc,aynbranccs. all properties leased
and cosaarolled by the Reading company
and those Il might thereafter acquire ;also
propertio Of the coal and iron company.
Platt. the complainant, sets forth that he
- - uosuVT Va ~ ausouut oA UsSoo
bonds. tho interest upon which become
payable on tho first day Of February, last.
A demand made by tho complainant upon
tho railroad company to pay him said
amount was refused and the company
has failed up to tho present time
to pay him any portion Of tho
amount which became duo and payable
the first Of February, and interest upon
other bonds Of said issue held by other
owners remains unpaid. Tho Pennsyl.
vania company has refused. the bill AYERS,
TO proceed In equity to foreclose the mort.
gage. The bill sets forth that great in.
come can be derived from the operations
of the Reading Railroad and the Coal and
Iron companies and II would be disas.
trous should the business of either he
temporarily suspended. A large amount
Of income 10 now in tho possession or un.
der tho control OF those companies justly
applicable to tho payment OF interest, but
tho companies havc refused 10 appropri-
ate this income to such payment and
threaten TO apply tho Same to the pay.
nlcnt AZ unsecured indebtedness.
Tho bill asserts that tho companies,
though possessed OF ample funds, 10 tho
sams were judiciously administered to pay
all Indebtedness. arc insolvent In tho
sense that they are without funds In tho
shape of cash or assets convertible into
cash sufficient TO pay their indebtedness
actually natnred or to mature In q short
time. Tho bill sets forth the vast extent
and value Of the property, and says the
railroad company owns all the stock OF
the coal snd IRON company, and that tho
operations Of tho two depend largely upon
each other. There il eminent danger, tho
bill asserts, Of the property being levied
upon, attached and disintegratetl to ire
parable Injury Of creditors. unless tho
court takes action. The present condi-
tion Of the company is stated to be largely
the result Of tho demands Of loans for
which ample security 10 pledged
with tho lenders, but which loans
tho holders thereof at the present
time nro unwilling to renew. The com.
plninant prays that the rights Of tho hold
crs OF the third preference bonds be do
fined; tho Pennsylvania company re-
quired TO institute proceedings, receivers
be appointed. etc.
President Mcleod said this evening that
he would prepare a statement. hut did not
say whom. President Earle Of the Finance
company OF Pennsylvania, and CONNER.
clhl agent for the Reading road, said this
evening that the Finance company has
from q. s.0dO.00O 20 100000 worth Of coal
on hand upon which advances have been
made. This amount lie declared was
enough to pay the Reading floating debt
twice over. The present difficulty. he said,
is due TO everybody demanding his money
at once. which Is unnecessary, for the com.
t- ul, a. sssx lat.s