Morning journal and courier., 1893-04-22
FORCED TO THE WALL.

Receivers We've Appointed for the
Pennsylvania and the Maryland
Steel COMPATIBILITY Created Big
Sensations.
April 21.-Rsceivers were
to-day appointed for the Pennsylvania
Steel company, which has extensive plants
Mr.. Luther 8. Bent, president of the COM
pany, when seen said the appointment of
receivers was not the result of any want of
profitable work at both Steelton and Spar
rows Point. 1t was simply caused by the
present unfavorable condition of the money
market.
While the company was unquestionably
unable to pay all its debts in cash to day it
has very large assets in excess of debts,
and its powers of earning were never
greater. 1t simply requires time to tide
through the present crisis. The company
is capitalized at $5,OO0,0 900, of which
81, 500, 900 has been paid in.
The company has always been regarded
as closely allied to the Pennsylvania road.
1t is understood that much of the capital
agement of the railroad. The plant of the
company at Steelton hiss a capacity of 3d.
600 tons of steel ingots per month. In adj
dition there had been recently equipped q
bridge and general construction depart
ment. -
, In 1883 the company went into partner
ship with the Bethlehem Iron company In
the purchase of extensive ore lands in
southeastern Cuba, and about 10000 tons
of ore per month was imported from this
source. To bring the manufacture into
more direct connection with the raw mate
rial, the company began a new and extern
sive plant on tidewster OF Sparrow's Point,
near Baltimore. Four blast furnaces are
now in operation there turning out 400, 900
net tons of Bessemer pig iron annually.
There are also a rolling mill and steel
works at Sparrow's Point, with an annual
capacity of 300, 900 net tons of standard
sections of rails, and within the past year
or two a ship building plant has been
erected. A separate organization
known as the Maryland Steel
company was formed to operate the Balti-
more plant, although 1t was practically
identical with the Pennsylvania company.
Among the stockholders of the company
are some of the most prominent people in
the state. The Camerons are large stock
holders as are the estates of Thomas Scott,
j. Edgar Thomson and Samuel III. FELTON,.
Wayne Mac Vesgh is one of the directors.
BALTIMORE, April 81 A receiver for
the Maryland Steel company was appointed
by Judge Wickes to day. F. W. Wood,
president of the company, was named and
Immediately filed bond for $500 900.
The announcement caused q sensation.
The bill of complaint stated that the
Maryland Steel company was principally
owned by the Pennsylvania Steel company
and that the latter was in financial difficult
ties. A. 81. Winterstein represented
Wayne MacVesgh in the action and ex-
planned that the crash was probably due to
the expenditures and improvements at
Sparrow's Point and Steelton.
The Sparrow Point plant cost over &c.
600, 900. It is bonded for $4,000, 900 and
has a floating Indebtedness Of 81, 900, 900.
It is also stated that there is $500, 900 due
on bills and that there is stock and mate
rial on hand to the amount of s., 00o, 900.
The capital stock is 81, ZOO, 900.
Robert L. Preston, the counsel for the
Maryland Steel company, admitted that
company is several hundred thousands
short on cash basis. The property of
the company consists of nearly $1,000, 900
of land at Sparrow Point, with machinery
and buildings necessary to carry on the
manufacture of steel and ship-building. 1t
is considered the finest rolling mill in the
country. It is the only one where ore is
turned out, after passing through the pro-
cesses of iron and steel making, in the
form of complete steel vessels. Three
thousand men are employed.