Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1893-02-21
CAUSE og HE READING BREAK

| Various reasons are given for tho fan In value
OF Reading stock. Whether the bear movement
is connected with the plans and projects OF Pre-
sident Mcleod In New England Is not certainly
Known. But indications are that he Vanderbilt
interests have attacked Reading and New York
and New England 10 order to embarrass the
proposed extension OF Readings influence IN
the New England States
Mr.. Perpont Morgan Is credited with making
Z the attack on Reading. One account OF the
trouble ~ that while MIR. Morgan was willing u
I see Reading assist his fayOrite Pennsyyanla and
other coal roads Ia b0lsting the price OF coal, be
| was not willing 30 have the bold Mcleod 20 up
and take bite out OF the rich plum which Mr..
| Morgan had SO long enjoyed IN the monopoly OF
rail trade between New YORK and Boston.
or course, In buying control OF the eastern
| roads tho Reading gave promises 10 pay, and
| put up its own stock as collateral When the
| value Of this collateral decreased moro waz
| called for. When II was not obtained OF course
| tho collateral was thrown on the mar.
ket TO bring what II could. This explains the
! appearance Of those huge blocks OF stock. The
| rule on Saturday was 10 sell 10 not less than
l.000-share blocks.
To strike out into a new trunk line, with posi-
| BILE complications Ia the already-strained East
| and West through rates, meant the enmity II
| tho Pennsylvania railroad owners and the big
Philadelphia house Of Drexel, likewise the Dis
ike q the yanderbilts, with all their
far-reaching power for checkmatlng,, while
| the eastern extension met the dispea-
sure OF Mr.. Morgan and the New Haven
| road milli0naires. 10 was 80 easy 10 squeeze a
| little In the most vulnerable part OF tho Read.
| ing--its loan account IL was only question OF
| time until the well-informed and powerful COM
| binAtion put on tho pressure and stood below 70
| catch the rich Juice as II fell.
| On the other hand, a Philadelphia fnancier,
who holds CONFIDENTIAL relations with President
| Mcleod, gives this as the cause OF the break:
Reading Is perfectly sound IL | had
| $4,000 900 | would not hesitate In lOaning II
10 the company. This break was caused by
a sudden and Imperative demand upon the
part Of q heavy creditor for 100000. Tbs
company did not have that amount on hand
and its Efforts 10 secure IL created DIE
| trust. This led several large holders 10 un
| load their shares The market, naturally soft
! on account OF the unsettled monetary situation,
| was made to absorb the heavy load. bad
| break occurred. This started tho public IL was
ike !, run on a bank. Readings stability Is now
undergoing crucial test. But II Will come out
all right
Sales-Listed stock, 1877 ,448 shares: an.
listed, 140, 900 shares. Sub-Treasury balances:
Coin, s72, 1871 600; currency. s234i0,0O0.
MONEY AND EXCHANGE.
Money on call has been cloee ranging from ~
70 7c.. last loan at ylSc, and closing offered Al
| 2lbc.: prime mercantile paper. 5a6tEc.
Sterling exchange quiet and easier; posted
rates, eLb7as4se; commercial bills, s4S61sa
S4.S7.
Government bonds dull aud easier; southern