The daily morning Astorian. [volume] (Astoria, Oregon) 1883-1899, 1893-02-21
IRIS GOOD BYE READING
The Greatest Railroad Monopoly In the
World is Broken.
PLArT APPLIED FOR A RECEIVER
Na,vs or the O,ash Caused the Immediate
'LArT APPLIED FOR A RECEIVER
News OF the Crash Caused the Immediate
Failure OF Several Firms and = Panic
in the stockmarket.
Associated Press.

fA1oo~@e1~N@
New York, Feb 2O.-Liquldation in
Reading and New England stocks was re-
sumed this morning on an enormous scale.
In the first few minutes Reading was
driven down to 25s against SO 5-S on Sat
urday. The antagonism brought out by
the stockholders report brought a seriou
decline In Northern Poetic preferred,
which was quickly depressed TO 4sh
against 48 "a on Saturday. The tension as
the day advanced was terrific. The strain
was too great for many firms. and shortly
after noon failures began to be onnounced,
The first to go was w. F. Russell, and
then t. j. Delaney. and next that Of
G. s. Fleet. The amounts of their liabili-
ties are unknown. but 1t is not believed
to be large. The cause OF the weakness In
Reading is believed to be the attitude Of
the Vanderbilts and the bonker Morgan
toward the Reading people. for having
contemplated entering their territory. An
other reason given is that Speyer & Com
pany have called a loan made to Reading
last January. The trading in Reading is
unprecedented. -
The rumored application for a receiver
brought another food Of selling orders,
and Reading dropped down to 2S. When
1t was further reported. however. that a
receiver was actually appointed 1t rallied
to 80 after delivery hour. Sugar rose to
125 after selling as low as 1907. New En-
gland ogain reached 4O its opening price.
but Reading remained below 80. The
market closed active and firm at some
thing better than the lowest.
Philadelphia. Feb. 2O.-An application
for a receiver for Reading was made in
bill in equity filed by one of the stock
holders late this afternoon. The bill has
not yet been made public.
Later-The application was made by
ex-United States Senator Thos C. Platt
of New York, as holder of Reading
bonds. The petition was granted and A.
A. Mcleod, president Of the company; z.
P. WILDER OF the Lehigh division, and ex-
Chief Justice Paxon OF the state supreme
court, were appointed receivers under
a bond Of s5O0,OOO. Judge Paxon has for
warded his resignotion as chief justice to
tn egoyernor.
The security of each receiver is fixed at
filed at Trenton. N. ].
The bill in equity filed by ex-senator
Platt says in the complaint that he
brings his bill in behalf of himself and
all holders of bonds of a like character.
The bill, which is extremely lengthy,
divested of all legal verbiage, sets forth
that the issuing by the Reading Company
in January, 1883. Of third preference in
come mortgage bonds. the amount Of
which is now In excess of s25.OO0,O ,OOO to be
in January, 1858. ond with inter-
est payable out of the net earnings of
the railroad company, Of four per cent.
per annum, payable on the 1st Of February
Of each year, the bonds being secured by
q certain mortgage executed by the Read
Ing Road Coal & Land Company to the
Company for assurances on
lives and granting annuities, this mort
gage was conveyed subject to certain in
of prior date. all properties
leased and controlled by the Reading
Company and those It might thereafter
acquire, also properties OF the Coal g.
Land Company. Platt sets forth that he
IS the holder Of large amount Of these
bonds, the interest on which became pay
able on the LIST day OF February last. A
demand was made on the railroad COM
oany to pay him the amount and. 1t was
.efused and the company has failed up
o the present time to pay him any por-
ion of the amount which became due
Ind poyable. The bill asserts that the
though possed of ample funds
( the same were judiciousiy administered
ire insolvent in the sense that they are
Without fundg in the shape OF cash or
lssets convertible into cash sufficient to
,ay their Indebtedness actually matured
II to mature in a short time. There is
danger. the bill asserts Of the |
being levied upon attached and |
to the irreparable injury Of |
he creditors unless the court takes ac-
ion. The condition Of the company is
tated to be largely the result Of the de-
nands OF loans for which ample security |
5 pledged with the lenders but which the
oan holders thereof are at present un-
willing to renew.
President Mcleod Of the Reading Road,
n an interview tonight said he was driv-
n TO the necessity for Q. receivership but
/ was the only thing to do. They were
ding an enormous business on a small )
apital, and when attacks were made II
Iurt their credit so that they could not
orrow money.
Russell Sage said. president Mcleod
5 smart man. and believe he has the
upport OF the people who hold the Read
ng storck. The total amount lost by the
tockholders In the Reading since Feb
uary is estimated OF ssl,O6s, ,112.
Boston, Feb. 2os-The story Is given out
ere that the Reading holders have scored
handsome profit BY being short Of Read
ng in the market The result Is that the
lcLeod party is in position today to buy
ack all the Reading stock they cold and
more. The stock is worth intrinsicalIy
10 per share more thon ever before. OF
curse It Is the PennsyIyania- Vanderbilt
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