The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-02-21

President Mcleod Went Into Territory
Where He Had No Business.

President Mcleod Went Into Territory
Where He Had No Business.
NEW YORK, Feb. 20-The appointment of
receivers for the Reading Railroad Com
pany marks the crisis Of one of the most
dramatic episodes in financial history.
Much of the inside history of the fall of the
Reading management is yet to be told, but
the climax Of the affair was the appoint
ment of the receivers to-day.
lt,is safe to say that no one of those who
have foreseen that disaster must follow
the course that the Reading management
has pursued since the formation of the coal
com Dination q year ago. has fOreseen any
such tremendous catastrophe as that which
Wall street has witnessed during the past
three days. 1t is safe to say that not even
those who brought about this catastrophe
had any idea of how tremendous would be
Its effects. Itis felt by Wall street men that
if any one could have realized ITS extent it
would have been the members Of the luck
less Reading pool 1t is urged they must
have foreseen that disaster was impending;
must have known ON what extremely thin
ice their representative was skating and
must have realized that with the available
money of the coterle spread out on narrow
margins on the stocks of three great rail-
road systems, q decline Of any magnitude
in the price of Reading must have been
attended by dire results. 1t was probably
for this reasOn-sO runs the conclusions OF
the street-that they have made such
strenuous efforts to keep up the price Of
Reading, For it is pointed out that only
about g month ago the annual report of
the Reading company was lssued. 1t was
full of hope and encouraeenent for the
stockholders. President Mcleod In his re-
A. l. II G..A.
was full of promise. That one month after
the issuance of this report the stock of
the com pany should decline twenty points
and the appointment of receivers should
be necessary, seem almost Incredible.
about the fall of the Reading company it
is unnecessary to 90 over again the ground
which is familiar to verybody. Tho pub
lio understand that when Mr.. Mcleod. un-
satisfied with the results attained by his
coal ombin alton. went into New England
territory and acquired control Of the Bos-
ton IL Maine and q large interest in the
New En- gland company. he antagonized the
New York. New Haven 81 Hartford and the
great capitalists behind that company. 1t
is generally believed that the New Haven
QUESTION of the New England
at some time and at it's own
The general public did. Hence the news
of MIR. McLeOd's purchases of New England
was received with the greatest surprise.
That any man. and particularly a man no
stronger than Mr.. Mcleod, should volun-
tarily antagonize the New Haven manage
menJ seemed Incomprehensible. Mr.. Nc
Leod is reported to have answered one of
his friends and allies who demonstrated
with him in this manner: IL will not be
dictated to by Mr.. Morgan. 1 would rather
run n little one horse country road"
A consensus of opinion IS that from the
day that Mr.. Mcleod ventured into New
England territory the Reading company.
under his management. was doomed. The
exact methods employed in bringing about
the results of the past three days may be
known in time. They are now only in.
ferred from such facts as are at hand.
There is speculation, also as to how far the
smash was the result OF human efforts in
that direction and how far it was merely
the natural result of the folly and reckless
ness of the management There are those
who believe it was the result of both.
On the Stock Exchange to-day there was
great excitement. At the opening huge
blocks of Reading were thrown on the mar
ket. Inside of twelve minutes the price
was hammered down to 61s points. Brokers
acted like lunatics and pandemonium
reigned. Everybod wanted TO sell, and
the price went off o few more points, until
the appointment of receiver was an-
nouced. when the rally began.
Ex-senator Platr, with reference to his
application for the appointment of the
pany unable to meet its debts and
made an affidavit to that effect.
and on it based my application
for the appointment of receiver.
/ am acting for no one ont
SIDE of myself either directly or indirectly.
My only desire in securing the appointment
of n receiver was TO zee if the company
could not be re0rganized and put on q
proper basis once more. No change has
been made in the head of the Reading
owing to my application. Mr. Mcleod is
still at the helm while Mr. Wilbur remains
president OF the Lehigh Valley road.r
President Charles Parsons. OF the New
England, In answer to q question whether
the stock had been bought in his interest,
and whether he knew If Drexel. Morgan &
have been no large blocks Of New Epglsnd