The record-union., 1893-02-21

Company, and it would be disastrous
should the business OF either be tempo
rarily suspended. \ large amount of the |
income is now in possession or under
control of these companies justly ap-
plicable to the payment of the interest,
but the companies refused to appropriate
this income to such payment, and
threaten to apply the samo to the pay
ment of unsecured Indebtedness.
The bill asserts that the companies
though possessed of ample means, if the
sale was judiciously administered, to pay
all Indebtedness, are insolvent in the
sense that they are without funds in
shape OF cash or assets convertible into
cash sufficient to pay their Indebtedness
actually matured or to mature in a short
time. The bill sets forth the vast extent
and value of properties, and says the
railroad company owns all the stock of
the coal and iron company, and that the
operations of the two depend largely
upon each other. There is imminent
danger, the bill asserts, of the property
being levied upon, attached and disinte-
grated to irreparable injury of creditors
unless the court takes action. The pres
ent condition of the company is stated to
be largely the result of the 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 complaint prays that the rights of
holders of third preference bonds be de-
fined; the Pennsylvania Company re-
quired to institute proceedings, 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 Pennsylvania
and Commercial Agent for the Reading
road said this evening that the Finance
Company has from S, ,000, 900 to 1000, 900
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, was due
to everybody demanding his money at
once, which is unnecessary, for the COM
pany is able to pay its debts.
DRIVEN TO THE STEP.
PHILADELPHIA Pa.), Feb. 2O.-Presi-
dent Mcleod of the Reading, in an inter-
view tonight, said he was sorry they
were driven to the necessity for receiv-
ership, but it was the only thing to do
Their credit was attacked in way that
made it impossible for them to meet the
obligations, and they had a receivership
established before the property was fur
/ ther injured. They were doing an enor-
nous business on q small capital, and
when the attack was made it hurt their
credit so they could not borrow money.
LOSS OF READING STOCKHOLDERS.
NEW YORK, Feb. 2O.-Ex- Senator Platt,
speaking of his application for receiver
for the Reading, said tonight: 81 found
the company unable to meet its debts,
and made affidavit to that effect as basis
for the application. My only desire was
to see if the company could not be reor-
ganized and put on proper basis once
more"
Russell Sage said: mcleod is a smart
man, ana l believe he has the support OF
the people holding Reading stock. The
total amount lost by the stockholders in
Reading since February is estimated al
S3H ,UO0, llZ.'
HISTORY OF THE READING AFFAIR.
Boston, Feb. 20.-An interesting story
is given out by the Boston News Bureau
as the true history of the Reading affair
1t seems that after Charles o. Parsons de
veloped the New York roads in Northern
New York into the Rome, Watertow1
and Ogdensburg system J. PierrepOn
Morgan went before the directors meet
ing of the New York Central and asked
them if they were aware that at littl,
cost new system could parallel the New
York Central and connect with Fitch
burg at Albany. They were startled, anC
bought Parsons system to keep it from
possible connection with New England
A few months later Parsons appeared il
New York and New England. Morgan
went to New York, New Haven an(
Hartford people and told them to pincl
Parsons all they could, and not ALLOW
him to build up, as he did against tn
New York Central. The "pinching'
policy was inaugurated forthwith
but suddenly Mcleod of the Read
ing appeared on the field an,
announced that he had purchases
control of the New York and New Eng
land interest Of his company. Parson
, and almost everyone else refused to be
lieve this, but Morgan was convinced
and asked Mcleod to turn the contrc
over to him. Mcleod refused, and prep
arations for war were Immediately bega
on both sides. Morgan got all his com
panies into shape so they could not b
disturbed by the commotion in til
money market. Mcleod locked up th
1 control of New York and New England
and his friends Immediately began sell
ing their Reading stock, and some of III
Reading people have scored a handsom
profit by being short OF Reading in tn
market. The result is that the McLeo
; party is in position to buy back all til
Reading they sold and more; stock wort
intrinsically $40 per share more tina
ever before. lis property and holding
d are among the best in the country. TIL
; conspiracy against Readings finance wi
/, be echeckmated by Receiver in the intel
est of the company. OF course it is th
e Pennsylvania, Vanderbilt, Wagne
: Drexel-M Morgan interest against the ReaC
6 ing, Pullman, and New England interes
5 The Reading people to-day are strongt
{ than most people imagine.
g Worlds Fair Sunday Opening.
: WASHINGTON, Feb. 20.-The World
II | f,,.,,,,,;t+aa Of tI,o uN,,ea Il