Morning journal and courier., 1893-03-22
REApING,s TROUBLES.


Application for Authority 10 Issue
$5,50O,OOO in Certificates - The
Roads Indebtedness-Judg Dallas
Refers the Matter to George l.. Craw-
ford as Master.
PHILADELPHIA, March 21.-Jadge Dallas
of the United States court this afternoon,
On petition of receivers of the Philadelphia
and Reading railroad for authority to issue
receivers certificates to the amount of $5,-
100000, Issued an order referring the mat
ter to George L. Crawford with instruc-
tions to report to the court as to the ad-
visibility of making the order thereby
prayed for or any other or modified order.
The master is directed to give publicity to
his proposed hearings in the matter, both
by advertisement in the newspapers and
by direct special written notice to any per-
son who in his judgment should be speci-
ically notified. This first portion of the
petition deals with the condition of
the roads finances as embraced in their
statement already published. Proceed
ing, the recsivers state that they have
used a large amount of their current re-
ceipts in the payment of wages accrued
and due at the date of the appointment of
re csiyers, but they have been unable to
make any very substantial REDUCTION In the
sums due for materials and supplies fur
nished and to connecting lines, on account
of interchange of traffic; and as result
of this necessary application of their in
come they have been further unable to
meet the payments which have fallen due
since February 30, 1893, on the accounts
named. Further they state that the fol-
lowing Is a correct statement of the in
debtedness at this time on accounts named:
Railroad compspy-Materials and sup
companies, 81, 100000 Coal and Iron
oomp any-Materials and supplies, S377,-
OOO
Coal purchases, about 81 ,7Ss, 900. In ad-
dition to the above amounts wages have
sccrued since February 20, 1898, to the
following amounts: Railroad company,
81, 400, 600; Coal and Iron company, $780,
600; making a total in all of S7,035 600.
The petition continues
your petitioners are satisfied that it
will be impossible for them to pay, in
cases, for materials, supplies and other liza
bilities of the company at the time of the
creation of the recsiverships and thereaf-
ter to be in possession of the funds, suffi-
Cl6ut W cHdS1c tuOu1 ~ LnGcs OtAok Ouk2oAb
liabilities. They are already unable with
the cash in their hands to meet the liabil-
tiles which are being created from day to
day commencing with the reoeivership.
They believe that If they are authorised to
issue certificates to the amount Of S., SOC, 600
to be negotiated or to be delivered to the
persons to whom the companies are in
debted for material, supplies, coal pur-
chsses, ETC., as above enumerated, they
will be able with the current receipts to
meet the current liabilities of the COM
panies, as the same will accrue during the
year ending the last day of March, 1894,
including all interest charges, rentals and
guarantees, and including the OUTLAWS re-
and car trust installments maturing
during the year.
New YORK, March 21.-President Nc
Leod of Reading was here this afternoon
in consultation with Speyer & Co., the
bankers, who are carrying lsrge part of
the company's loans. g. e. Brettherton,
vice -chairman of the London committee of
the Reading income bondholders, has ar
rived here. He called to day on General
Fitzgerald, of the general mortgage bond
| holders committee, and offered to CO.
| operate in the movement for the removal
| Of Mr.. Mcleod as one of the receivers OF
the Reading. General Fitzgerald said:
| "We do not care now many receivers
| certificates are issued go long as they are q
lien after and not ahead of The general
MORTGAGE"
In spite of the general utterances of the
different representatives of the Reading
security holders there does not seem to be
any aggressiveness in the movement talked
of for the removal of Mr.. Mcleod as re
ceiver.