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


ont Did not all his schemes have thci
approval? And, consequently, when he presented.
few weeks ago. that glowing report OF the road
unprecedented prosperity which caused cynical pep
10 smile In dcriion. shon1 It's correctness be doubted
! here. when none OF the directors on WHOM Uh'
citizens relied questioned a single statement That
| contained They did not DOUBT; they held on VIII
unwavcrng faith until the last moment, until IL was
too hate to save themselves
The rich who managed the pool escaPn' II
appears with los, OF profits; but te rank ana HIS
sustain absolute, positive losses which most Oh hch
| can i'll AFFORD TO bear. one victim, apparently
! small merchant, stood ticker this morning IN
Chcstnut-st brokers' office. The Exchange had JUST
| opened. He gazed anxously al the figures on The
narrow tape, the quotations OF Reading engrosSihs
his attention There shade OF reaction OH the
market In consequence Of London buying, the price
rising to 81. and his face lighted up; but gradually
the stock declined by eighths and quarters until II
reached 80 then 90 and finally 20 He tunnel away
with look OF despair.
II bought that stock" said he, "On a rise, at
~ Everybody advised me to put II away, as 1t was
certain TO go TO par i did Then, when II went
down, told it was the last opportunity 10 get
Reading cheap. i bought some more this time, on
q margin. When Mr.. Mcleod made his report, the
first OF the month, felt that l had acted wisely
and l borrowed money and bought more
stock margin. All have in the world Is In that
stock, and what am going 10 do l don't know
BONE OF my friends ana neighbors In the same
position that am in. The margins are all gone,
and l have nothing but the stock Oh, 1t is 4
bitter experience, tell you"
The receivers OF the company, Judge PaxsOn, Mr..
Wilbur and Mr.. Mcleod, appointed yesterday by
Judge Dallas, lost time in entering upon their
duties. All OF them In court before IL O'Clock
this morning, and each Of them signed the bond
for 100000. This the security for the
faithful performance Of duty required by the court
and promptly furnished by the receivers. The re-
ceivers are bound Jointly for the amount named.
The work Of qualifying was hurriedly performed,
and then the managers Of Reading hurried away to
the Offices OF the company. They went into executive
session Immediately, and the first result Of their
labors the issuance OF an official circular marked
"No. l." signed by the receivers and informing the
public Of their appointment. This Is the full text OF
1t:
The undersigned have day taken possession OF the
property and effects OF the Philadelphia and Reading Rail
road Company and the Philadelphia and Reading Coal and
Iron Company, receivers OF said c0rlorltO appohVu
by order OF the Circuit Court of the United States for
the Eastern District of Pennsylvania. The business Of
both companies Will be conducted 10y the receivers, ana
all officials agents and employees Of the companies are con-
nued in their respective positions All overdue wages
Of both companies will be paid In cash. due notice being
given Of the times and places OF payment.
A more elaborate statement, one that wond re-
feet the actual condition Of the company's finances,
was cxpeced. by people; but the receivers are
not ready yet TO impart this eagerly desired In
formation. 1t was said to-day that 1t would take
few days to prepare such a circular.
Mr.. Mcleod seemed to be in happy frame Of
mind when he came out Of the room in which his
fellow receivers were in session. He did not evince
any disposition 10 talk about the COM
pany's affairs, but he thanked the re-
porers for the way In which. he said. they had
treated him. adding that there was better feeling
in financial circles. and that he was sure he had
adopted the proper course"
81 Think he remarked he walked away, that
know how TO treat this properly lie referred to
the putting Of the road into the hands OF receivers
This he insists the only course for him TO pursue
Why he declared In previous Interview, We were
obliged to come TO 1t In one way or the other. one
OF the heaviest preference b0ndhodcrs told me to-day
that II had not paid that Interest
he would have applied for recevcrshlp last month";
Mr.. McLeod's declaration that the Leigh Valley
would remain with the Reading was proved to-day to
be accurate by the action of the Lchgh directors in
giving TO the Reading receivers the boards formal
sent 10 the continuance Of the lease under the
ownership. There is clause in this lease # appears.
under which the Lehigh Company could Immediately
withdraw from relations with the Reading COMPANY.
II elected 10 take that step According 10 this section
No purchaser at any judicial Sole assignee,
cever Of the party Of the second the
Reading, any assigned OF the party Of the second
part appointed under proceedings In bankruptcy, or be-
coming by virtue Of act operation OF law In any
proceeding against at Law or in equity, shall have any
title or interest premises hereby deml.cd
any part thereof without the consent Of the party OF the
part gwen Aforesaid in writing under It's corpor
ate seal.
This explains why there was hasty conference
OF officials at the LclAgh Valley Office yesterday and
subsequent meeting OF the directors and 1t Is init
mated this morning that the writing under the cor
pOrate seal" had been formally executed and Is now
in the hands Of the receivers, thus confirming the
position the two companies have occupied In respect
TO each other for the last twelve months. In the
Lehigh Valley Office there docs not appear any ap
prehenslon on the subject Of the April dividend. An
official OF the company said discussion OF that qucs-
tion was rather premature, but there IS apparently
feeling Of confidence TINT rupture win occur from
a failure TO rental obligations. There
seems TO be no doubt that the Lehigh people
will stand by Mr.. Mcleod, or, rather the Reading
under the receivershp. 1t would be surprising
II they did not
Following this announcement OF the Leligl Valleys
attitude came the report Of a reorganization Of Read
lng's finances upon q basis that would relieve the
corporation Of the preference mortgages, which IN
their present shape regarded an Incubus OF 100
heavy a character for the company to carry. This
Ing is sat o, ,na that S,Ds, S ,m has
and that the ex-Chief Justice stands MS the repre-
sentative OF the Drexels IN the receivefship Thcs,
income DOnOs nave dlWays Decn u ooWOt w ''""''
10 the road There are $50. 900 900 OF them, and
the interest S3,OOOy0OO must be paid II the books
chow that the money has earned. whether there
are any funds In the treasury or not II was the |
paym ent OF this interest last month that prcciA-
those who are close the receivers assert Is 10 re-
lire these bonds and Issue in place OF them pro ,
fcrrcd stock the exchange being made on basis that
il Is believed will he satisfactory 10 the bondh Her,
The floating debt, estimated vafoisy at from !
81 OOO 600 10 Sc 600 would OF have 10 be
taken care Of: the senior bonds and various fixed
obligations Of the company. including It's payments
under contract 10 leased lines. cannot well be- tam
pered with. In financial circles II IS thought, there /
fore that 1t would be the owners OF preference bonds,