The state republican. (Jefferson City, Mo.) 1871-1896, 1893-02-23
READING CALLED DOWN.

After ono Brief Year of Existence
The Formation of tho Coal Trust ana
the Bold Invasion of New England Ter
riton PrecIpitated the Crnsh-Tho Sys-
tenn In tho Hands OF Receivers.
NEW York, Feb. 20.--The Philadel-
phia & Reading railroad is in the hands
of re ~civers. Its credit and its power
IN the financial world are gone, and the
ownership of its panic-blown, widely
scattered stock is unknown. The rise
and fall of one of the most extensive
and ambitious railroad combinations
ever attempted are embraced in the
comparatively brief period of one year
and fortnight.
1t was Just year ago this month
that the formation of the great Read
ing-Jerscy Csntral-Lehigh Valley alli-
ance was publicly announced. Rail-
road men aud Wall street 6naociers
were surprised and impressed with the
magnitude Of the combination. In
| milenge. il was the largest railroad
system in the east, and its ownership
! Of coal mines made il apparently the
arbitrator of the coal markets of the
| country.
The hand of J. Pierrepont Morgan
was fraiilsly disclosed in the new COM
bination and the prestige Of his name
added much to the public confidence in
the stability of the statement. Never
did such aH enterprise start under
more favora bic conditions. Conserva-
tive men in Wall street were inclined
to believe that the unfortunate and
much-buffeted road was at last to be
tuidod into the haven of solvency.
Arciiibeld Mcleod was hailed as the
savior of the Heading and praised as
the coming railroad magDate Of the
world. His simple declaration OF what
he intended to do was popularity nc
ccptcd as the statement of thing ac-
compltshed Mr.. Mcleod has not been
indolent in his high estate. His brief
career rs president of the Read
ing system has been marked by
an uncommon exhibition Of activ-
| ity, energy and personal self-reli-
| ancc. His administration forms q
unique and theatrical chapter in the
| history of American railroads. The
dissolution of the Reading combination,
! which eliminated yesterday, was begun
| by tic opposition of the New Jersey
| authorities and the courts to the for
ma ton of coal trust Although Mr.
| Mcleod anttllis associates pooh-poohed
that opposition for awhile, they hnally
had to give way to it, and Il complete
| severance of the relations between tho
Reading and the Jersey Central was
announced.
| The facts relating to the Readings
incursion into New England the series
of brilliant moves which apparently
placed the new Poughkeepsie bridge,
the 1Ioston & Maine railroad, the New
| York & New England railroad and the
Connecticut River railroad in the con-
troll of the great combination, are still
familiar events in the public mind. II
was this New England extension,
| which practically was declaration OF
war against the powerful New York,
/ New Haven q Hartford railroad cor
poraton. that caused the successive up
rising of obstacles over which Mr..
Mcleod has been stumbling for the
past few months. BY invading the ter
ritory of the consolidated system he
antagonized strong financial interests
represented by Drexel, Morgan & Co.,
which at the outset had been most
powerful hacker. The relations be-
tween Mr. Pierrepont Morgan and the
Reading management at once became
strained, and it was not long before
Mcleod found his feet slipping off his
financial basis.
The Philadelphia syndicate who were
carrying the stoclt Of the Reading COM
pany found themselves overwcighted
with rapidly acquired subsidiary prop
critics in New England and elsewhere,
and the need of more money was felt.
Heavy obligations approached ma
turty, and some quick returns had to
be made to escape direct default. The
resources of Mr.. Morgan were nc
longer interested in protecting Read
ing's credit if the earnings failed to
come up to his expectations, and
the prestige of the Reading combina'
ton began to fade. Quite naturally
the heavy selling of Reading shares in
the stock exchanges here and at Phila.
delphia last Friday and Saturday, and
, the rapid decline in prices suggested
financial weakness on the part of the
t mana cement of the property. AL
} doubts on that point were removed
Yesterday when it was learned that an
application had been made to Penn
. sylvania court for the appointment OF
receiver.