The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1893-02-21

PHILADELPHIA, Pa, Feb. 20.-An appli-
cation for receiyership for the Philadel.
shia and Reading Railway company was
granted by Judge Dallas late this after
noon. The application was made by ex-
Senator Thomas G. Platt of New York, as
holder of the company's third preference
bonds The receivers appointed are A. A.
Mcleod, president of the Reading COM
pany; Elisha 2. Wilbur of the Lehigh
Valley division of the Reading, and Ed
ward NJ. Psxson, chief justice of the
supreme court of Pennsylvania. Justice
Paxson has forwarded his resignation as
Justice of the supreme court to the gov
srnor. The receivers bond is $500 COO. A
similar bill has been, or will be tomorrow
morning, filed in New Jersey.
The bill in equity says that the COM
plainant brings the bill of complaint on
his own behalf and on behalf of all other
holders of bonds of 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 of January, 1883, the Reading
company made an issue of third preference
income mortgage bonds to an amount
now in excess of S25, 100000. The bonds
issued were for 81 GOO each. Each of said
owner thereof on the 1st of January,
1858, Of 81 coo in gold coin, with interest
thereon mean while payable in gold the
Ist of February in year. only out Of the
act earnings of the company for its fiscal
scar ending the 90th of the preceding
November available for the purpose, up
10 5 per cent. per anDum, after providing
for certain payments therein set forth and
enumerated.
The bonds were secured by mortgages
bearing date the third of January, 1888,
executed and delivered by the Reading
Railroad company and the Philadelphia
hndReadiDg Coal and Iron company to.the
Pennsylvania Company for Insurance on
Lives and Granting Annuities. The
mortga conveyed all the properties of
the Philadelphia and Reading and all the
properties (coal mines, etc. y belonging to
The Philadelphia and Reading Coal and
iron company, and all rights, privileges,
Etc.
The complaint says that the property of
the railway company is incumbered by
mortgages or deeds of trust securing
various issues of bonds representing its
funded debt and so-called floating idebted-
ness. The railway company is also very
largely indebted for taxes, balances due
Duher railway companies in the adjust
ment and interchange of business, for
arrears of wages and salaries due its en-
ployes, and for large sums due for sup
plies. The property of the coal and iron
company is also heavily incumbered,
and the company is also largely
indebted for materials and supplies
Fnd wages and salaries. These companies
are utterly unable, out of the assats i'm
meGiately available, to discharge or to
provide for their Indebtedness, and there is
Imminent danger OF the property being
levied upon, attached, held and dislnte-
grated, TO the complainant'S irreparable
injury.
The present condition is largely the re-
suit of demands for the repayment of
loans, for which there is an ample security
pledged with the lenders, but which loans
the holders thereof are unwilling at the
present time TO renew.
Under the circumstances, the ipterfer-
ence of court in equity for the ascertain
ment and enforcement of complainant's
rights is imperatively required, and
especially for the immediate appointment
Of u receiver or receivers to take cha ge OF.
keep and preserve the property of the two
companies, continue their business, re-
:eive and properly appropriate the income
thereof until the final decree of the court
N the premises"
The complainant prays that the receiver
or receivers may be required to enter upon
and take possession of the mortgaged
property of the railway and coal and iron
companies ana TO MAINTAIN, use and ODer-
ate the same pending the final decree of
the court in the premises, and that by
such final decree they may be ordered TO
exercise the power of sale contained in the
mortgage, unless in the interim the de-
fault upon the bonds shall be secured by
The payment of all arrears of interest
thereon.
The receivers are ordered to keep an ac-
,ount of all sums received and paid out
by them on account of said corporations
respectively, and TO pass their accounts
monthly before George l.. Crawford who
Is hereby appointed special master in the
cause. 1t is further ordered that an in
junction be issued against the defendants
aud all other persons 10 restrain them
from interfering with said receivers TAX
ing possession of and managing said
property, with leave to any party in in
terest To apply COR further dire ctious
President Mcleod of the Reading rail-
Nay this afternoon announced indirectly
that he would prepare statement of the
tompany's troubles, and it is probable
that it will be given out tomorrow.
George Hart, Jr., president of the