New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-02-22
WALL STREET WAITING.
THINGS WHICH II WANTS TO KNOW ABOUT
READING.
THE AFFAIRS OF THE COMPANY IN AS MUo0
DARKNESS AS EvER-CRITICIsM ABOUT
THE CONTINUANCE OF Mr.. MLEOD
IN CONTROL OF THE ROAD.


THE CONTINUANCE OF MR. WLEoD
IN CONTROL OF THE ROAD.
Speculative excitement in the Stock Exchange
ran down yesterday from the high plane IL
reached on Monday, but there was no abatcneAs
of interest in the affairs of the Philadelphia ann
Reading Railroad Company. The force Of tho
liquidation in the securities Of the company he's
been expended, but the whole financial com.
munlty is hanging upon the Developments whicn
may follow the action 10 secure receivcrship.
The recent slaughter of holdings has been so sud-
den and extensive that the consequences may
not easily he measured, especially as there are
numerous questions in the railroad world yet 10
be settled The speculative situation in the stock
market may he benefited by the puncturing OF
bubble, but perhaps the downfall Of the Reading
structure may lead to revelations of managemens
that will disturb legitimate interests 1t Is this
fear which left Wall Street disturbed and anxious
at the close of business yesterday, and the wor-
ried men could see no offsetting advantage in
possible war on coal rates, even though that
idea was secuted by the leading officers OF the
coal-producing companies and prominent men IN
the coal trade.
The magnitude of the collapse in the solvcncy
of the Philadelphia and Reading is yet imposst-
bic to measure. The full significance Of the suit
through which the receivership effected cen
not now be outlined. The surface facts wou0
not indicate that the management of the Read
ing had been seriously disturbed. One OF tho
receivers is the executive oflicer-Archibald A.
McIeod-who is held responsible for the errors
of financial and RAILROAD management, which led
to the collapse. Another one of the receivers is
a man whose interests should naturally be de-
voted to the protection of property that, when
| fn
company that had passed through two bank
ruptcics The third receiver is a man of the
highest reputation in legal circles, whose in
tegrity is unquestioned, but whose capacity as 9
reorganiztr is not known wholly TO the salts
faction of important New-York interests. In
these circumstances excuse may be
given for the launching of criticisms in Wall
Street banking circles against the present con-
stitution Of the rccevcrship. TIE 3runt Of tho
obiectiors inevitably falls upon the continuance
Of Mr. Mcleod in the direction of the affairs Of
the Reading 1t is urged by his New-York crit
les that the failure of the Reading Company
proves his incapacity as financial manager, even
if il may not be doubted whether he has not
given too much attention 10 outside schemes
to warrant approval as railroad operating chief
To put him into place which if his weakness
as manager is admitted, would give him promi-
ncnce in the future direction OF the insolvent
companys affairs is considered by many persons
mistake.
! This question, together with many others. de-
rcnds in its answer upon the developments whioh
may be mede as TO the actual financial condition
| of the Reading property and tie causes that "'0
| TO its suspension OF payments. The SIZE ana
character of the fl5ating obligations of the Read
| ing are unkn1 OWE ,he methods and possibilities
of reorganization are equally unsettled. There Is
nothing yet known here of the actual situatlon'
and while all suggestions of scandal may not DO
justified they cannot be suppressed. LOUD cali
is made for stringent scrutiny. II there are
speculative motives at the bottom o. the financial
collarse they should be exposed. If rival rail-
road interests have helped TO crush property
which otherwise would have sustained its solven"y,
conservative men in Wall Street demand that
the responsibility be fixed. If financial
integrity can be proved and existing conditions
traced simply to of judgment. the facts are
needed for the enliehtment alike OF creditors ana
investors in the propcrty II the PROCEEDINGS thas
secured the receivership were inspired by design
70 protect the present management of Reading, ID
is hoped that the scheme shall he exposed for the
vindcation of innocent men who may have been
lcd into the trap. The wreck in the prices OF
Reading securities represents an enormous llquida-
,ion The attitude of investors must hereafter de-
was largely speculative, or only the precipitation
of crisis in the affairs of Reading that in its
consequences, may not easily be aauged.
Il was impossible 10 learn in New-fork the
extent of the floating debt of the Reading system
The amount of interest unpaid upon the prefer
ence income bonds cannot be determined. Az
the annual meeting of the stockholders OF the
company On January 0. the declaration OF the ln-
terest was made Payment was begun on fepru-
ary t. and the Corbin Banking Company. OF TINS
city. was delegated to pay Ncw-York holders.
This bank made payments CT interest up TO last
Saturday 1t is said that payments were made
on Friday, but on Friday the holders of preference
incomes who presented their claims at the Corbil
bank were referred TO the Philadelphia Offices OF
the Reading Company. The papers in tie suit OF
Thomas c. Patt. on which III" Reading receiver
shin was secured. do not. according TO the tee-
oraphed summary say when the payment of inter-
est on his holdings of third preference bonds was
rosusoJ 10 him. The belief in Wall Street circles
il strong that many holders Of these bonds
NEGLECT ID to draw their interest promptly and 50
are left 10 wait upon the developments III the re-
ceivership
There are numerous guesses as to the extent OF
the floating debt of the Reading Company, put
they range from S6,00O,000 TO Sl',O0O,0oo, WIN
out data 70 support any estimate mat Is uusS
worthy. One OF the early reports vi "'c ""S wa"
that the Lehigh and Wilkesbarre Coal Company,
which is controlled by tie Central Railroad OF
New-Jesey, held nine notes of S2Ooooo each'
,o,al Of 81 500. .OOO against the Reading Com
many 70 cover coal transactions while tile jersey
contrars interests was under the Rea1ing
Io..a President J. Rogers Maxwell, OF
tho Central Railroad of New-Jerscys.
made tho following statement on this
point: The total amount due directly or In
directly from the Reading to the Lehigh and
Wilkesbarre Company is Slo3,0o0, the balance
having been paid some time ago. The Reading
owes the Jersey Central only 81 $4,000 on traffic
balances. which is less than the usual amount in
Cured in the course of interchanging business
These are preferred liabilities under the oder of
the court"