The Providence news. (Providence [R.I.]) 1891-1906, 1893-02-22
RIGHT AFTER The CRASH
Receivers Of Reading Getting Down
to Business.
REAL CAUSE OF THE TROUBLE.
The Coal Company. Was What
Did 1t All - All Checks Sent
Out by the Reading Company VIII
he Promptly Met.
SPECIAL TO THE NEWS.

NEW YORK, Feb. 22-The causes which
led to the downfall of the Reading are
still the theme Of conversation in finan-
cial circles. The believers in the theory
that j. p. Morgan is the leader Of the
attack against Mr.. Mcleod are losing
confidence from the fact that it is now
generally acknowledged that Al. Drexel
is acting as the financial adviser aud
backer Of Mr. Mcleod. II there was any
antagonism between Mr.. Mcleod aud
Mr. Morgan, IL is doubtful if Mr.. DreXel
would interest himself in the support OF
the Readings president.
The straw that has broken the hack OF
Reading is its coal trade. Despite the
good demand for coal and the high prices
obtained there are conditions existing
which have derived Reading OF the ad-
vantages OF these profits.
To the colieries With which the road
has contracts no payments have cen
made for the month ending Feb. Is. In
this lies the essence of the
losses. Reading Coal and Iron
Company is owned by the Reading Rail-
road Company. Its holdings OF coal
property are so great as to give 1T, theo-
retically, monopoly of the coal busi-
ness, but, practically. it owns by no
means all the mines and the output OF
the small collieries owned by pri-
vate parties must be taken care of.
in order to preserve the Read
ing's monopoly and keep up prices.
with all these colieries the Reading read
has a contract to pay TO their owner GO per
cent of the tide water price and reserve
40 per cent for its freight and handling
charges. Under such a contract the pri-
vate collieries have pushed their output
TO the highest point as the prices were
nynGtah hla Mpanwhila Ran1-
ing under the contract was not only
losing money as 40 per cent does not
equal the cost Of transportation. In fact
the coal cost them more than 1t would
bring in the market. The product OF the
private collleries constantly Increased
and had always TO be taken care OF TO the
exclusion of the Coal 81 Iron Com
pany's coal.
IL is said by coal dealers that the Read
ing Company has suffered enormous
losses from this one source, which, added
TO toe great expenditure for docks at
Port Reading, has forced it into the re-
ceiver's hands.
1t was in realization of this threaten.
ing danger that Mr.. Mcleod tried to
push the connections of his road, and
free it from the burden OF its coal busi-
ness by carrying other freight. Iu short,
change his road from coal tramway
iuto n trunk line. The plan was great,
and there Is as yet no positive evidence
at hand TO show that IL has entirely failed.
Henry Clews Is authority for the state
ment that instead of being defeated Mr..
Mcleod has landed ION top" and has
actually succeeded in defeating all the
attacks made OH him. Mr.. Clews is of
the opinion that instead oil Mr.. McI,eod's
days being numbered in the railroad
world, Wall street has only witnessed
his entrance into it's field and the fnture
has great things In store tor the Reading
road and its president. He says such
men as Henry I lizard and A. A. Mcleod
are not crushed in day.