St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-02-21
IN RECEIVERS HANDS
Affairs of the Philadelphia Il
Reading Get Into
Court.
AS a Result Three Receivers
for the Company Are
Appointed.
Default of Interest on Bonds
the Cause Of the Com
plant.
A Statement From the Com
pany Looked for To-
day.


PHILADELPHIA, Feb. 20.-The affairs
or the Philadelphia Il Reading Railroad
company were brought into court late
this afternoon. All day there were
rumors on the street that receivers were
to be appointed. The offices of the
United States circuit court were con-
stantly besleged by newspaper men and
parties Interested in Reading matters.
who were eager to obtain the lat
est news. About 2:30 o'clock this
afternoon Attorney John q. John
son and Lawyer Thomas Harte Jr.
made their appearance, and were clos
eted long time with Judge Dallas in
chambers. Clerk of the Court Bell was
kept busy going to and fro, but could
not give out any news until something
official had been done. This did not
take place until 4 few minutes past
o'clock. when the announcement was
made that Judge Dallas had made the
appointments.
Tha Proceeding
was brought by ex-senator Thomas c.
Platt, of New York, a holder of third
preference bonds, against the Phlla-
delphia IL Reading Railroad company,
the Philadelphia IL Reading Coal and
Iron company and the Pennsylvania
Company for Insurance on Lives and
Granting Annuities. of this city. The
receivers appointed are Archibald A.Mc-
Leod, president of the company; Chief
Justice Edward NJ. PaXson, Of the SUI
preme court, and Elisha p. Wilbur, eX-
president Of the Lehigh Valley Rail
road company. Justice PaXsOn at once
sent his resignation as chief justice OF
the supreme court of Pennsylvania to
Gov. Pattison. The security of each
receiver was fixed at $500 900, for which
they are to enter their own bond.
George L. Crawford was appointed
master. A similar bill, it was said, is to
be fled at Trenton, Nj.
The bill in equity says the above
named complainant brings his bill Of
complaint against the defendants above
named on his own behalf, and on be-
half of all other holders of bonds in a
like character, rendering to such other
persons and holders
The Right TO Intervene
if they should see fit. He AYERS that
''on or about the Sd uf January, 1888, the
Philadelphia d Reading Railroad com
pany made an issue of third preference
income mortgage bonds to a large
amount, the amount of said is
sue being now in excess of
S25, coo, GOO. The bonds thus issued
were for $1,000 each. Each Of said
bonds provided for the payment to the
owner at the office Of the company in
the city of Philadelphia on the LIST day
of January, 1858. of the sum of $1,000 in
gold of the United States OF America Of
the then present standard weight and
fneness. with interest thereon, mean
while. payable in gold coin, on the 1st
day of February of each year, only out
OF the net earnings of the railroad COM
pany for its fiscal year, ending on the
30th day of the preceding November,
available for the purpose, up to per
centum per annum, after providing for
certain payments therein set forth and
enumerated.
The bonds thus issued were secured
by certain mortgage bearing date the
Sd of January. 1883. executed and deliv-
cred by the Philadelphia d Reading
Railroad company and the Philadelphia
d Reading Coal and Iron company to
the PENNSYLVANIA Company for lnSur-
ance on Lives and Granting AnnuitieS.
This mortgage thus executed and deliv-
cred to the said company, for assurances
on lives and granting annulties,
Was BuIy Accented
by it in writing under its seal attcstpd
the 9th day of March. 1883. 1t was duly
recorded. in accordance with law, in all
the counties of the state of Pennsyl-
Vania. and in other places i'll which the
m0rtgagpd property was situated.
Said mortgage, subiectto certain prior
encumbranceS therein recited. conveyed
all the railroad properties and railroads
owned, leased and controlled by the
Philadelphia & Reading Railroad
company, and all railroads and
railroad properties which it might
thereafter own, lease and con.
troll. 1t also conveyed other proper
ties as is therein set forth, reference to
said mortgage being cTaved and inter
ALA, conveyed all and singular the
tolls, rents, revenues, issues, profits
and income of said railroad company,
and derived from all railroads, canals
and other property, and all the corpor-
ate and other rights, privileges. appur-
tenanceS and franchises Of the railroad
company, acquired, or to be acquired,
connected with or relating to the mort
gagged premises.
The said mortgage also conveyed all
the coal lands, Goa! leases, iron ore
lands, franchises, properties and
AtE,ar RaaJ Estate
then belonging to the Philadelphia &
Reading Coal and Iron company, to-
gether with certain other properties in
said mortgage described, and all the
corporate and other rights, privileges,
apuurtenances and franchises of the
coal company, acquired, or to be &C
Quired, connected with, or relating to
said lands, coal and iron mines or other
premises, or any OF Them" etc.
The mortgage further provided: 1.-The
railroad company, on or before the 18th
day of January, 1888, shall ascertain the
net earnings applicable to the interest
on the bonds hereby secured for the pc
Rod from June 1, 1887, to Dec. l, 1883,
up to ~ per centum for said period, and
Shall thereafter, on or before the 18th
day Of January of each year, ascer-
tain the net earnings for the fiscal
year ending the preceding 30th of
November applicable to the inter-
est hereby secured up TO per
centum per annum and the railroad
company shall, on or before the 18th
day Of January Of each year, furnish
the trustees with statement showing
the amount of the net earnings appli-
cable to the interest on the bonds Sc