The Wilmington daily Republican. (Wilmington, Del.) 1890-1902, 1893-02-22
READING LOOMING UP.
Employees of the Road to be Paid
In Cash,
SOME TALK OF REORGANIZATION.

II Il Believed That Drexsi q Co VIII Again
Come to the Assistance of the Stranded
Corporation, and That the Recsivership
Was Advised by the Banking Firm.
PHILADELPHIA, Feb 2s s.-Havng quail.
fed on their personal bonds to the amount
of s5oo,o0o each, tho newly appointed re-
ceivers, Messrs. Paxson, Wilbur and Nc
Leod, entered into formal possession of the
Reading company's property yesterday.
The first official act of the receivers was
to issue circular TO employees of the rail
road and Coal and Iron company, which
concludes; Ill overdue wages of both com.
panies will be paid in cash, due notice being
given of the times and places of pay
ment.n
The affairs Of the company still form the
sole topic OF conversation In financial cir
cles, although the unparalleled excitement
of the past few days has almost wholly
subsidized. Pending definite statement
from the receivers, the security holders are
in an eXpectant attitude, and on all sides
the opinion is expressed that reorganiza-
tion would be for the best interests of tho
company. The lease of the Lehgh Valley
to the Reading will not be disturbed and
the directors of the former corporation
have made official recognition OF the re-
ceivership
The receivers have notified the Finance
Company of Pennsylvania that the exist
ing contract between that concern and the
Reading Coal and Iron company win be
continued under the reeeivership The
Finance company is fully protected frcm
all possibility of loss, its advances to the
Reading being secured by collateral for
five times the amount Of money involved.
Talk of Reorganization.
From inside ccs it is strongly inti-
mated that the outcome of the present
receiyership would be another reorganiza.
tion of the company's finances upon a basis
that would relieve the corporation of tho
preference mortgages, which in their pres
ent shape are regarded as an incubus of
too heavy q character for the company to
carry.
In the talked of reorganization the name
of Drexel tS Co. is freely used and it is
said the banking house has again come to
the assistance CT the embarrassed COM
puny. 1t Is said that one Of the conditions
insisted upon by DreXel & Co if they
come to the Readings aid, is that thor.
ough reorganization of the company's
finances is made upon basis of dong
away with the preference mortgage.
1t Is believed that it was after II CONSUL
tation, and by the advice of Mr. A j.
Drexel, that the Reading managers de
cided to apply for n receiver 1t is also un-
derstood that it was at the earnest solici-
tation Of Mr. DreSel that Judge Paxson
resigned his place on the bench and ac-
cepted the office of one of the Readings
receivers Judge PaSson is credited with
being the representative of the Drexels in
the Teceivcrship. and that whatever atti-
tude he assumes will represent the position
oil the DreNels
Whether the Reading has been forced to
loosen its grasp upon the New York and
New England will probably not be posi-
lively known until the annual meeting of
the lattel road on the l4th of March. 1t is
still confidently asserted by the friends of
the Reading that the New York and New
England is firmly in the possession OF the
Reading
1t is said that policy of rigid rctrench-
ment will lie innugurated in the Readings
management, nnd many of the high sal
arid officials viii probably have to go.