Grand Rapids herald. [volume] (Grand Rapids, Mich.) 1892-1959, 1893-02-21

raasE trililsut ps<cs OF work ~ railroad
fls 2nei<nug That nat bs<n done ia
taany years. and J. Plerpont Morgan.
wtl. uAs represented - she enxiaeer or
the dezl. b<cams . sp<culzt ye hero,
tssdlaz, when had been lAgglng at
loosbo. uAs ran up 10 d. aud . great
future wss predicted Tor the lately des-
tEnsd stoek-
Al nFst there wss every evidence
that the road vas bound I term of
prosperity aud the confidence OF the
street IN Pres.1snt Mcleod WAS high.
LATER. however. tAis eonfid snee began
ia sAns under the we'll understood
fact that the great house 4 Drexel,
Morgan 4 Co. nAd wltncfawn lts sup
port Ia ave or SIX months the stock
mas baby sAgxsd. bat the feeling on
the street that the pfoilts OF the al
combine were secure operated 10 sns-
taln u against any marked break.
wsst Lsks Paper.
President Mcleod and nis associates
claimed 90 have stock enough IA tue
New YORK aud Nes England road 10
<slfe President Parsons next moatn,
silt traders refused To believe thus. and
snsn The raid on Reading vas made
Frldzy aud saturday the stock gave
nse paper.
Tue transactions were the largest
kaosn % The New York stock exchange
tr many yrara Friday $50. $50 snsres
we're sold and Saturday 5l4,ll0 shsres.
The price MAS driven down Friday
from foriy-seven 10 about forty one.
aad Saturday from that point To thirty
sesen-s break Of nineteen points IN =
day and = half. THIS morning II
crashed through again and the feeling
Was general that tho road could not
weather the storm. The announce
ment caused the widest sensation on
the stock exchange and 80, 900 shares
Of Reading. yhe largest IN the history
cf the exchange for any one day,
changed hands by ? O'Clock. The
lowest price WAS IS, drop of . points.
The tnsrd day OF the great battle be-
tween the Vanderbilt and the Mcleod
interests opened when the exchange be-
gan business. Huge plocksof Reading
were thrown on the market. and made
Of twelve minutes tbs price MAS ham
niertd down 81 points. making q total
decline since the downward move
n,enE began Of l6l poirts. Then the
esual sAgnt reaction set in, and the
velocity OF the descent was momen-
tsfiIy checked.
Wild Exeitement
The scenes at the exchange through
cut the IN orning were exciting. The
galleries we're packed 10 suttocation by
an immense crowd. which was inter
ssted aud amazed At what il saw. On
the floor pAndemouium reigned.
around the Reading post there Was q
Wild. struggling mAss OF panic-stricken
humanity. Brokers jumped. roared.
yelled. gesticulated- The roar arising
from the babel of Thousands Of voices
extended beyond tue walls OF the
building and caused passers-by TO stop
IN zmAzement- IL Was . panic. Brok-
srs literally tumb.ed over each other
Ia their WI 4 cagcrness to unload. Read
ing was thrown on the market In
blocks Of from 600 10 IL 900 shares Al
n time aud snatchsd up by the bears at
panic prices. Readings first. second
and third income bonds dropped q
poInt . minute.
The cause OF the hear raid and the
withdrawal OF the roads support 10 va
rlously assigned TO different parties,
Dut there exists . strong feeling that
sne Morgan Drexel house and tue Penn
svlvanls railroad system have done
most or the heavy work. There - q
belief also that some persons supposed
20 be near 10 Mcleod have so!I freely,
as III no otter way could be explained
the Tremendous dumping OF the stock
on the market Postmaster General
wansmaker. who was large holder OF
Reading. was sald TO be n heavy seller
Friday. although that Was denied by
Thomas Dolxn. of the great WIdener-
klklns combine, which has been identi-
ND With the Mcleod faction IN the
rosi. That faction, IL is believed now,
u thoroughly routed.
Mcleod Talks
Immediately after the meeting this
morniug OF the directors OF tne Read
ing railroad. the directors II the lie.
higa valley railway met aud discussed
the situation No definite action was
taxen but It - understood tina. tney
nave consented 20 tue Reading receiver.
strp ss tne lease requires, and tnai II
y the intention that Tie Reading.
Lehigh Nsi-y combination shsll con
nnue as heretofore.
It ~ possible in the event OF the
Reading defsulting IN the payment OF
tne rental OF toe Lehign Valley, that
The lease may be Cancelled. The hrst
payment Of the 7 per cent interest %
ne p< annually by the Reading 20
the Lebixh Valley falls due on March
"A and amounts to 500. $50. the same
he ng equal TO / per cent on tbe ex-
sting outstanding capital stock Of ths
Lshlgn Valley The business OF the
Reading cor p1nles wsil 70 on as usual.
the acc unts Tor -sges and supplies
br4nx the frat payments that afc pro-
vide FOR 8ndcr = rec~iyership.
An iuQu.fer reporter saw President
Mcleod a. IS notel tnis evening. tie
va. iu geod rpir = aud sad II am
very sorry that We wrre driven o. the
necessity of reeeisefship. bu; u VA
tns only thing a DO. cur CREDIT vs'
attacked iu srsy that made q imyos.
s.bis for as q meet our Obligations
and vs bad the rseefvsrs8sp established
before ne property las further lBinred
T want To ssr that ve have q IN
haua now worth more than snough n
par our tpstng oilIgstons and tners
sili - 30 trouble ~ carving on tts
cnnpsny's hnsnces unw. The tfoabie
rss trouxht anoaf ty TIE fact that re
uefs dong an enormous hus ness CAPT
"a. ard ~afo tnis sttsc< sss made on
us a nart our credit so tnsg - cDuil
not hofr uoneT NsnY bu.suess mar
s1d fnsneisl ibstifulaoa hss terH
rain~sf n tus ssne say. 1ne iehiah
fsll~y oil rsmssn s3tn us ss b.fors
TIE Clsvslsna sFsfem -ii 30 MADE.
N,sas 81 eur fFteosis have siid thelf ;.
= \. z stock "a fse&. tss fses.s.
efsA o sfil not sneet as - the esm.
bsai~.' plsus TIE re sef.h : 81
l8Fres "a IL. b8t ! bs5a tost 4 Ill no'