The Princeton union. [volume] (Princeton, Minn.) 1876-1976, 1893-02-23
READING GOES WRONG.
RECEIVERS ARE APPOINTED FOR
THE ROAD.
Disaster Follows the Course Thae
the Management Has Pursued
Since the Formation OF
the Coal Combi-
nation.
surprise on Wall Street.

surprise on Wall Street.
Nav York. Feb. 21.-The appointment
of A. A. Mcleod, Chief Justice foWalu
Paxton and e. P. Wilbur receivers loi
tha Reading Railroad company was an
nounced this noon.
This marks the crisis OF one OF the
most dramatic episodes in hnanclai MS
tory. Much of the inside history OF Tue
fall of the Reading management IS !e'
to be told, but the climax OF Tue 'na'i
was the appointment of the receivers "
day. It is safe to say that no one u
those who have foreseen that olsas.ei
must follow the course that the heaollis
management has pursued since the loriha-
tion of the coal combination year ago
anticipated any such tremendous ."'-
astrophe as that which Wall street mas
q witnessed during the past three oays'
1t is safe to say that not even those WHO
brought about this catastrophe had any
idea of how tremendous would be us
effects. 1t is felt by Wall street men
that if anv one could have realized It's
extent it would have been the members
of the luckless Reading pool. 1t is urged
( they must have foreseen that disaster
was impending; must have known on:
what extremely thin ice their representa-
tive was skating, and must have realized
that with the available money or the
coterie spread out on narrow margins on
the stocks of three great railroad systems,
"A decline of any magnitude in the price
of Reading must have been attended by
dire results
1t was probably for this reason-so
rules the conclusion of the street-that
they have made such strenuous efforts
to keep up the price of Reading. For it
is pointed out, only about a month ago
the annual report of the Reading COM
pany was issued 1t was full of hope and
encouragement for the stockholders. 1t
will be remembered that full interest on
all the classes of preference income
shown to have been earned was paid.
President Mcleod in the report told the
stockholders that the future was full of
promise. That one month after the is
suance of this report the stock of the
company should decline 20 points, and
that the appointment of receivers should
be necessary, seem almost incredible.
In searching for the causes which
brought about the fall Of the Reading
company it is unnecessary to go over
again the ground which is familiar tc
everybody. The public understands that
results attained by his coal combination
went into New England territory and &C
quired control of the Boston & Maine
= and large interest in the New England
company, he antagonized the New York
New Haven u Hartford and the grea
capitalists behind that company. 1t i:
generally believed. that the New Have1
management had looked for the acuuisi
r ton of the New England at some time
anu ut its own price. Mr.. Mcleod mus
have known this. The general publ,
did Hence the news of Mr.. Mcleod.
purchases of New England was received
with the greatest surprise That an!
man, and particularly man no stronge
q than Mr.. Mcleod. should yoluntaril,
~antagonize the New Haven management
IL seemed incomprehensible. Mr.. McLeo,
is reported to have answered one of hi
friends and allies who demonstrated witt
him. in this manner: Il will not be die
tated to by Mr.. Morgan. l would rathe
- run Il little One-horse country road
. The tension of the market the day ad
- yaneed was terrific. The strain was to
great for many firms, and shortly after moo
some Failures began to be announced. Th
first to go by the board was w. Il. Russel
While the added excitement of this new
was still fresh came the announcement c
another faiure--that of Il. j. Delane,
i. Close en- the heels of this came thir,
+
liabilities Is unknown, but is believed nc
=. to be large. No new reasons are given fo
the aG GGntinuatio M of the terrific onslaught {
the weakness in Reading is believed on Wa
street to be the attitude assumed by tn
landerbilts and j. Pierpont Morgan toward
Mr.. Mcleod and his associates for conten
plated entering of their territory. 1t is r,
lorte ID. that hat conference was held yeste
d. bat this cannot be confirmed.
.g@ Another reason given for the great sluul
IN Reading is that Speyer & Co. have Gale
in the loan IL ey made to Reading last Ja1
uary, for the purpose of paying off the IL il
terest on third preference bonds. Mr. Spe,
er ,,, Will not affirm or deny the report.
+ Trading In Reading was unprecedented
Nearly every, broker on the floor traded
this thM s stock oS; Among the heaviest indiyidus
Co.. who sold $1,000 shares at the " openin,
Among Among other heavy sellers We're Turne
s Minpf s. W sWeef CO.. H. u E*sf a
and Mr.. 1amltCn. There were twenty
more 5000 share selling orders execute,
.e but as whole the transactions We're mad
in 800 and 1,O0O-share lots.
Mcleod and Wiber as re- sTsS; of {
baton in Wall street and was regarded :
entirely in the interests of the company an
its present management, therefore maxim
sure the continuation of the present polio
OF the company as far practicable.
was felt that there would be no going bat
over the ground trodden since Mr.. Mcleod
election. and that not only the interests
the Reading company alone would be locke
after. but the interests of the coal trade
general. President Sloan, of the Delawar
Iackawanna & Western, when seen, sa
that the appointment of receivers for IL
Reading would in no way affect the pri,
OF COAL and those looking at this furry
the disruption of the combine and a cau
for cheapening of the price of coal we
likely to be disappointed.
New Flour Mills.
Dundas, Mimi, Special, Feb. q. = I'll
mill site, warehouses, dams and 17O-hor
power engine were to-day sold by +.
hnra to taen watson fa grain G9 bu
will be commenced as soon as spring ope
for the erection Of Touring mill to GOV
the old site, 52x70 feet, three stories. wi
basement. at a cost Of $4,000. The In
will be 100 barrel capacity on the start,
.creaSing as the trade demands to 500 Or 8