New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-02-22

ROAD.
was suggested in Wall Street that the burden OF
the obligatory payment of interest on the prefer
encc income bonds, under certain conditions OF
net earnings, must be got rid OF. DISCUSSIONS OF
this sort are superfuOus until the financial az
fairs of tho Reading Company are fully explained.
The friends of Mr.. Mcleod say that he was
forced 10 make provision for the payment OF in
terest on the preference bonds at sacrifice of the
best interests of the property. Another view ad-
~anccd by we-informed Wall Street brokers is
marSable contrast with the terrific excitement in
help the unloading of stock and securities by the
Philadelphia syndicate by showing a clear profit
over the interest payments on the preference IN
come bonds. 1t this desire Of necessity, 1t Is
urged, which led the Beading management to
neglect both roadbed and equipment. III tile
financial accounts had shown that the interest
on the income bonds had not been earned, there
would have been need TO incur the n0atinS
debt, Which carried the Reading down. If the
accounts have been properly kept, conservative
bankers lay there is no excuse for the conditions
which compelled the company TO default on It's IN
come interest obligations. and thereby furnish
excuse for a Ieceirership. If the accounts have
been manipulated in the service Of speculative
pool, then there an intentional misleading OF
the public and of recent lenders of money to the
Mcleod has shown deficiencies in management
that render him Objectionable rs receiver OF the
company when 10 is finally forced 10 confess Its
insolvency.
The Stock Exchange yesterday showed a re-
markable contrast with the terrific excitement in
Reading securities that prevailed on Mon lay. The
total transactions OF the day Were more than
800. 900 shares and Reading lie the list with sales
of 233, $50 shares. The first price OF Reading was
81, against so at Mondays close. and 4 continued
3-4 Of the lowest price. at the previous days
session. The rallies were feeble and the closing
quotation was 20 IS, Just shade under Monday
final price The Reading bonds were irregular
on a largely reduced volume of business AT the
end the general mortgage per cent bonds were
UP per cent at 1914, the second preference .S
the deferred incomes were up 7-s per
cent at o7-s. The iirsts' income ne:
thirds IL per cert at 80 Severe drops occur
red early in the other coal shares. but there
were recoveries later which left no important I,
ware Sss ,0 and western coverng Of
shorts effected gain Of ] per cent IN Mor.lern
Pacific Ihsre y, %"e src but IN at sbe
close values had recovered to 40 3-s, trihing
decline from Monday The general market was
unsettled under the influence OF the rearing com
market and the opinion usually expressed was
that more normal speculation would prevail
Thomas c. Platt. when seen at his Office: No
on fhe Affairs of Reading I" know nothing about
the business of the company" said he Il couldn't
even guess at the amount Of the floating debt or
say what has been, done with the earnibgs that
were TO pay off the interest on the bonds. |
simply know that l held lot of preference IN
como bonds. The interest was not paid, and when
dmeand was made payment WAS refused when
the crisis came in the affairs OF the road. con-
Guided that there little change OF my getting
sshsd for tSs Mr. ps c4 S TO
whether or not he thought it proper
that Mr.. Mcleod should remain in con-
troll when reports were circulating charnns
ton was taken purely on his individual! respon-
sibility, and neither as the representative OF
pool OF bondhoders nor TO advance any inter
est. He (elt sure that Drcxei, Morgan d 90
had nothing whatever to do with the break
Neither did he believe that the situation in New
England was changed by hepanic. The con-
troll he believed was where II had been. Mr.. Nor
gan and the Vanderbilts would not be found to
have secured control in his opinion. The policy
of Mr. Mcleod IN regard TO coal would probably
and there was reason for changing it,. MIR.
Plat did not believe there Would be any change
in the coal trade owing to the appointment OF
the receivers. =, n -. r
Boardman Patt appeared lsfsre Judge wal Wal
day and obtained an order appointing A. A. Nc
Leod Edwin NJ Paxson and f. T. Wilbur re,
ceiyers of .he property of the Philadelphia and
Reading Railroad Company In this jurisdiction
They are TO furnish Joint bond of 81 10000
An Injunction granted 10 restrain the officers
OF the company from interfering with the receivers
in the discharge Of their duty The application
for the receivership made by T. G. Plat. and
with il were filed the paners on which the re.
ceivers were appointed in Philadelphia