New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-06-29
RAILROAD INTERESTS.
PHILADELPHIA AND READING AFFAIRS.

Cro-ING ARGUMENTS ON THE QUESTION VI
IssrING RECEIVERS CERTIFICATES.
philadelphia, June cs.-The hearing before George
f, Cr,v,or, TO-DAY on the application OF the Phiia'
dc,,ha and Reading Railroad receivers Tor permission
IN Issue receivers certificates to the amount Vi
IN "a. O8s was largely consumed In arguments
George Tucker Bispham, OF New-York, attorney Ior
the Scotch bondhOdcrs. called on Controner 'ohc''
O. the Reading Company, as the first witness, '.'
Mr. Jones was absent by direction OF the he"','s
counsel and different mortgages were prodaced j"
ov.sence Tncre Was also n demand for the prodnc-
tion Of the Lchlgh Valley lease. 10 consider an item
OF ss5 900 for rental due July !, but the item ""'
withdrawn from the application.
Mr.. Dickson for the receivers gave the following
statement OF the Ledgh Valleys business since WE
Reading receivprship: February not @rhneS e''-'
600. charges 1865 900: loss. 100000 Mhrch nv
earnings 1904 900; charges. $3G5,OoO gam. F2'oo'
April net earnings SAT 600 charges $oo''ooo ioss,
s1lsOOO MAY was about even. ana June VIII s'o"
a profit This shows apparent loss Oh Tls"oo'
Mr.. Dickson said, In a business OF Foooo'o' ~
the receivers are confident that this WIN DC "'''
than made ND by the value OF the connections.
Iohp n DOS Passos OF New-York, counsel ior
hondholdcrs I'm that city, then made an eX'eh"eu
nreument IN opposition 10 the Issuance OF 'he VT
ti0cates 10 declared that they should hot oe a
lien prior to that OF the general mortgage anu saw
TINT II the present request should De grah'cu' 49, g.
OOOOOO or xB,cOVVVV aoui""""i NN
be asked for. ~ -,
yohn NJ Cost who represented the trustees OF
AGA 600 900 first mortgage bonds. said he was WILING
the certificates should be issued provided they sno"u
he used for proper purposes. Mr. Dcks1n ,; sr
that while II was true that some OF the oDnSnuo,s
had been incurred previous to the r"ceversnip tne
court would not allow one class OF creators "
suffcr nj the expense OF another. - .,o
The argument was closed TINS .ernE micd States
master will make MS report 10 '"o |"''e" ~
Circuit Court next week.
In his brief presented Mt the masters hearing IN
Philadelphia Nathan Blur. counsel Tor MIS-. He'y
Green and other Reading bondholders, made sUohs
plea for the sale OF the Reading Companys co"i
assets ~ necessary to avoid default in July In
terest or Issue Of receivers certificates aheaa Vi
mor,rsrc liens lie showed that on November &c.
1900 the coal assets and coal accounts OF the com
ponr were 81 GOO 900, and on November 80 1891,
les. than A. 900 OOO while the receivers now report
I'll 100000 coal coal accounts pledged, for only
81 100000 Indebtedness. lie said: 1.-The present
enormous stock OF unnecessary and unused and I'M
avacd of coal coal accounts Is evidently great
burden to the company, and should have been ana
should be now Immediately realized upon within, oil
course reasonable time TO prevent needless sacrifice
No substantial efforts have been made to borrow
further moneys upon this enormous surplus, nor have
serious efforts been made TO reduce 1t percepubly:
What harm could be- done by an auction at an upset
price II would DO difficult TO explain, but this inuch
Is sure that 10 denomnate such sales sulcdaf ls 10
say the least, an exaggeration IN the lace OF Inc
fact that the company has deaultrd upon Its improve
ippnt and consolidated bonds and expects to dclauit
on its general mortgage on July !. i1rthcrmorc, IN
the face OF Mr.. Harriss's estimates that CURING 'he
earned the three foreclosures indicated are surely
suicidal the junior interests and as between such
a catastrophe and the sale OF few thousand tons ol
coal at reduced price there indeed be but slight
hesitation ana CHOICE