The sun. [volume] (New York [N.Y.]) 1833-1916, 1893-11-03
PRESIDENT M'LEOD'S DEALS.
WHY THE LOSSES WE'RE MADE COOP
ny THE READING RECEITERS.

Receiver Pnx-or Explains that the BROKERS
Threatened to Sell Out the Coiinternis
Deposited with Them-No Settlement III ns
Been Made with r. III. Prince d Co.
PHtbApEIpurA. Nov. 2.-deorro L. Crawford.
special master in the Reading Railroad re-
| ceivership. began a hearing at noon to-day for
the purpose OF taking testimony relative to the
application OF the receivers to the United
States Circuit Court that they be sanctioned
to redeem collateral trust bonds In order to
deliver $500. 900 Of them to Speyer Il Go. OF
New York. as additional security for the ex-
tension OF tho Readings $4,000. 900 loan.
In the course Of the hearing Judge Paxson.
the only receiver present. explained the cir
cumstances under which tho bonds held by f.
II. Prince Il Co. OF Boston and Spencer Erwin II
Co. were redeemed. Judge Paxson said that
the payment OF s100.0 900 TO +. II. Prince Co.
made by the receivers on March 2, 1903. was
made under these circumstances:
MIR. Prince came ON to see the receivers and
Informed them that he held certain securities
OF the company given Rs collateral for the pur-
chase OF stock Of the Boston and Maine Rail-
road. We were advised by Mr. johnson. and
1t was my own opinion. that tho transaction
was n legitimate one. and We paid Prince Co.
100000 and received in return S15O.O0O OF
collateral trust bonds We did this after being
advised that If We did not the bonds would be
$1,000 TO Spencer r' Erwin I, T." Go: Was made
under the same circumstances so far as MIR.
S SSonserned the witness Sontin ,nsb
the receivers, He had been told BY US that II
he sold the Boston and Maine stock held by
stock. and there has never been any settle
ment The receivers never would have re-
debt. but for the, reason that We wanted to
saye me eEatSras from heavy faG5ies,
ment in October with Snever h COMPANY for
trust bonds st wss ,he most iqaieioSs arrange;
seeurties;" He made tho same statement i9
and the Harrisburg and Gettysburg road.
,Aef @Sss Pns
amount Of Boston and Maine stock which
understand was purchased for the com,
nt hs h sTn
Company They bought line OF New York
and New England stock and held collateral
,or the purchase TWAS liability on open
Receiver Paxson further said that he did not
CO q, to hold the eollaterals, and continued:
I'VE were not dsposed to recognize Mr..
selves whatever Te fsemedy y" We had against r
Prince We reserved. because We told him he
had no authority to buy the stock. We did not
the bottom fell out OF Boston and Maine; I
have said entirely avoided any committal to
.ii., Ailuco On AcCouuI VI tuut DObtOh duu
Maine transaction"
The hearing was adjourned with the under
standing that the receivers would have before
the master at a future session the contracts
and other papers bearing on Mr. McLeod's deals.
Judge PaXson was allowed to 60. and the
meeting adjourned.
The leading receivers have arranged with
the holders OF the Car Trust series D. five per
cent gold bonds, S3lO.OOU of which were due
and payable Yesterday at the Provident Trust
Company. for an indefinite extension. giving
them an additional one per cent per annum for
90 doing. The original issue was for 81 lO0.-
900. and was made in lsHOto continue for ten
the rate OF 100000 every year. and until yes
terday they have been retired promptly. They
are amply secured by rolling stock OF the COM
pnnY.