Mineral Point tribune. (Mineral Point, Wis.) 1869-1938, 1893-04-15

absorbing topic in Wall street, as 1t was
at some of the uptown hotels, where
the news was received by brokers last
evening. For an event that was re-
garded as inevitable, this excitement
seems rathr strange, and can only be
explained by the fact that an extra
ordinary interest has been taken in
all these Reading developments eyr
since that startling announcement Of the
great Reading deal was made "A year
ago last winter
The financiers who see romance in
nothing but only the chance Of profits
OF the possibility of failure, have been
saying that with the retirement Of
Mr. Mcleod the future of the Reading
property is probably secure.
1T menas good many hundred
thousand dollars, perhaps millions, TO
the DreXel-Morgan people and their
allied interests in Great Britain" said
a financier to me this morning. Il sup
pose that now these bankers will have
the profitable commission of reorganiz-
ing the Reading and its allied compan-
les in Philadelphia. TO DO this viii re-
qlire q great amount of money | have
heard it said that there ought to be
and probably viii be as much as 500,
100000 provided for the company for
working capital Whether this win
appear as a bonded obligation or in the
form of stock is Of course, for the re-
organizers to determine
Mr. Morgan, | know, is a believer
in distributing capitalization so that
a pretty good share of it will appear
in the form Of bonds. His idea is that
nobody expects that the bonded obi
cations of the great railway corpor.
atoms win ever be paid, at least the
course, the floating obligations must he
principal bonds but that now tinanciers
have come tc regard them as indirect
capitalization % be permanently car
ried, and the bject only to such tinan-
cling as win reduce the interest obi
cations to a sum that will not be a
burden to the corporation and make
the payment of dividends on stock pos
sbie. | should not be surprised there
fore, if it was found that the Reading
was helped in this way, for it certainly
is known that its capital, that is its
working capital, is too small TO make
good management possible Then of
cared for many of them Immediately,
and | have no doubt that Mr. Morgan
has that emergency in view now that
he is in consultation in London with
the Brown Brothers"
NIcLeod's Mistakes.
Aside from such talk as this the most
frequent comment that is made today
suggests the mistakes of Mcleod. |
was told that probably no young rail
way officer ever had finer opportunity
than he. One banker said to me that|
Mr. Morgan. who is not often euthusi
astic in speech, declared to him the day
that Mcleod became CorbinS success
or in charge of Reading that the great
est opportunity offered to any railway
manager was McLeOd's; that the young
President had his entire confidence and
would receive his support in those
things which he had in mind to do.
Placed, therefore in charge of th,
property, and having at his back a
man esteemed the finest genius as a
financial organizer of his generation
with the exception of Gould, a mau
whose credit is SO high that the mere
acceptance by his house of the reSpou-
sibility Of caring for the dehcnrures
Of the Union Pacific was sufficient toll
establish their value in the market,
and a man who also controlled in vari-
nj
any other banker in Wall street, Mr..
Mcleod had everything TO his hand
patience, Such is the com
ment here, and II is regarded as mex
pliCable that SO brilliant a man as he
mqucstionIbly is so competent as Il
of railways, should not have
realized that his company did not con
troll capital enough to make it possible
for it to be defiant Of PierpOnt Morgan
and its interests.
T. c. Plat, upon whose application a
was provided for the Phila-
ctlphia and Reading railroad, said to-
day:
The resignation of A. A. Mcleod as
President Of the Reading was as great
"a surprise to me as to anybody. Mr..
NIcLeod's treatment has been undesery- 1
ed His financial measures have been
devised with the best motives and Who'll
IL in the interest of the Reading As
a practical railroad man his ability can +.
not be questioned. l suppose he will
now give his entire time TO the affairs
Of the Boston and Maine and the New
York and New England railroads. of
which he is President"
T. Edward simmons, Chairman Of
the Committee Of General Mortgage
OF the Reading said: The /
retirement Of Mr.. Mcleod was brought
about by the action Of the bondhold- |
ers. 1t is one object accomplished /
for which the bondholders. lommbit- /.
tees were formed Now we shall find /.
out the exact financial condition Of
the company.
McLecd'S Successor.
Philadelphia Pa, April 6.-The sig
niacance Of the statement published in