The Providence news. (Providence [R.I.]) 1891-1906, 1893-02-21

Coal and Iron Company, and the Penn
sylvania Company for assurances on lives
and granting annuities, of this city.
The receivers appointed are Archibald
A. McLeo the president of the company;
Chief Justice Edward M. Paxson OF the
Supreme 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
ernor 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. similar bill, it was
said, is to be filed at Trenton, N. j., to-
day.
The bill in equity says the complainant
brings his bill of complaint against the
defendants on his own behalf and on be
half OF all other holders OF
Bonds of Like Character.
The bill says that the third preference in
come mortgage bonds of the Philadelphia
d Reading Railroad Company amount to
more than s25, 100000. These bonds were
secured by mortgage delivered to the
Philadelphia a. Reading Railroad Compa-
ny and the Philadelphia * Reading Coal
and Iron Company, to the Pennsylvania
Company for Insurance on lives and
granting annuities.
During the fiscal year ending Nov. 80,
1892, the net earnings OF the railroad com
pany applicable TO the interest upon the
third preference bonds was sufficient to
pay thereon the sum OF five per cent per
annum. The railroad company prior TO
Feb. 4, 1893, gave public notice that five
per cent interest on the third preference
bonds would be paid Feb. 1, 1898.
The complainant holds $4,000 third
preferred bonds. His demand for pay
ment OF interest on the same was refused
by the railroad company and the Penn
sylvania company for insurance on lives
and granting annuities refused To comply
with complainant's request that it proceed
TO foreclose said mortgage and TO bring
about sale OF the mortgaged premises.
The bill declares that the Philadelphia
& Reading Railroad Company and the
Philadelphia d Reading Coal and Iron
Company, though possessed OF ample
property, IL the same be judiciously ad-
ministered and held together, to pay all
their indebtedness, are insolvent in the
sense that they are without funds in the
shape OF cash or assets convertible into
cash, sufficient to pay their Indebtedness
actually matured or which will within a
short time mature.
The present condition OF the companies
Is largely the result of demands OF loans
for which there is ample security pledged
WIN tnC lthutThs Dul Nnltu lOHus IDt
holders thereof are unwilling at the pres
ent time TO renew. The complainant
ensxefore asks that the rights of
Third Preference BondhoIders
De ascertained, that the Pennsylvania
company for insurance on lives and
granting annuities may be required to
institute foreclosure proceedings and take
possession OF the mortgaged property OF
the railroad company, and OF the coal and
iron company, and operate the same until
the courts final decree, and that q receiver
or receivers be appointed to take charge
OF the property.
The bill also asks that when the amount
Is ascertained a decree be entered direct
ing the Philadelphia Il Reading Railroad
Company TO pay the amount due the third
preference bondholders and that in de-
fault OF such payment, the mortgaged
property be sold under foreclosure. ~~-
The order Of the court appointing the
receivers directs them TO continue busi-
ness OF the railroad company and OF the
coal and iron company and enjoins the
defendants and all other persons from i'm
terfering with the receivers.
President Mcleod, OF the Reading rail-
road, denied himself TO all newspaper men
yesterday, but late in the afternoon an
nounced, indirectly, that he would pre-
pare statement OF the company's trou-
Dies. he, however, gave no intimatiOn as
TO when this would be done.
George II. Earle, Jr., president OF the
Finance Company OF Pennsylvania and
commercial agent for the Reading road,
said that the Finance Company has from
5000, 900 TO l0,000,0D0 worth OF Reading
coal on hand upon which no advance has
been made. This amount, Mr.. Earle de-
clared, II enough TO pay the Readings
floating debt twice over. When asked the
cause OF the present difficulty, Mr.. Earle
said Il was due TO every body demanding
his money At once which was unnecessary,
for the company was able TO pay its debts.
The Readings pay cars, which were
called back on Friday before their con-
; tents had been distributed, were not sent
out yesterday.
The recent heavy operations I'm Reading
suggest an interesting speculation re.
garding the amount Of money the friends
OF Reading required TO carry them on.
In the first place the $1,000 shares of BoS.