New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-04-22
IN THE HANDS OFRECEIVERS.
THE PENNSYLVANIA STEEL COMPANY EN-.
BARRASSED.

Ihll30elpnl1, Aprll Zl.-ReCplVerS were dp-
pointed to-day for the Pennsylvania Steel Com
pany, which has extensive plants at Steelton,
Penn, and Sparrows Point Nd The Grar1 Trust
Company, the trustee on the mortgages, and Presi-
dent Bent are the receivers. The appointments
were made by Judge Pennypacker In Common
Pleas Court No. , at II 80 o'clock this afternoon
upon application Of Alfred Earnshaw and 4.
Roberts Cox, creditors Of the company.
The company Is capitalized at $5,OOo,ooo, OF
which $4,000, 900 has been paid in. At the close
OF the stock market yesterday Pennsylvania Steel
Company shares sold at $l20, but to-day they
were offered at $780, the par value. with no
bid. The debt OF the company amounts to
! S4,000,00O, and the secured indebtedness is
Sl,000,O00 The plants and machinery are valued
at $4,000 900, the accounts receivable aggregate
900, and the stock on hand is worth
$4,000, 900 The company does a business Of
$4,000, 000 and 4,40O men employed. large
amount of the liabilities will soon mature.
Luther s. Bent. president of the company. when
seen said that the appointment Of receivers was
not the result OF any want Of profitable work at
both Steelton and Sparrows Point. 1t was simply
caused by the present unfortunate condition OF
the money market. The company had been for
some time large borrowers for the purpose of COM
pletng their Sparrows Point works. and also for
extensive alterations and Improvements at Steel
ton. and owing to the existing dstrust in fnan-
cial circles it became apparent that many OF their
maturing obligations could not be renewed. 1t
was to the interests Of all. therefore, that the af-
fairs OF the company should be placed in the hands
Of receivers Much Of the large stocks Of mate
rial now on hand can be worked up and converted
| into cash, while the company will retain its
valuable trade, and he felt certain that all cred
itors would be satisfactorily dealt with in COIN
parativcly short time.
| While the company was unquestonaby unable
to pay all its debts in cash to-day. it has very
large assets in excess OF its debts and its powers
Of earning were never greater. II simply requires
time TO tide through the present crisis full
and plain statement OF the companys affairs would
be printed as possible. and pending that
he would ask the stockholders not to secrifce
their stock for he believed it unquestionably
| worth much more than il has lately been selling
for and he could see reason why. when this
present unfortunate condition OF affairs had passed.
the company should not resume paying its usual
| dividends.
| The new. OF the appointment OF receivers was
! n great shock TO the business community. although
not entirely unexpected The immediate cause OF
the difficulty appears 10 have been the fact that
a number Of its notes matured yesterday. and that
the holders. most OF whom live in New-York. re-
fused 10 consent 10 tfeH renewal. iH'h, WV '"'
credit Of all iron and steel concerns has suffered
OF late, and many OF them have experienced great
difficulty in obtaining accommodations. There
has been an impression that the PENNSYLVANIA
COMPANY has been suffering from overeXtenson
The expanditures upon the Sparrows Point plant
| have boon very heavy, and il is thought in some
| quarters 10 have been a great mistake 10 COM
bine with the companys legitimate business the
building Of bridges and boats, both OF whch
undertakings have recently been established.
few DAVIS ago the directors Of the company
declared q semi-annual dividend Of ) per cent
upon their capital stock Of S5,ooo,ooo.
The PENNSYLVANIA Steel Company has always
been regarded as closely allied TO the Pennsyi-
yania Railroad 1t is understood. Indeed, tha'
much of the capital stock Of the former, II nov
held by the railroad company as corporation Is
owned by the management The steel company
furnished the Pennsylvania Railroad COMPANY
most Of its steel rails.
Tho nI,nt Of the company at Steelton has
round capacity Of 10000 tons of steel ipgotS per
month In addition there had been recently
eouinped a bridge and general construction de-
| partment In 1888 the company went into part
ncrship with the Bethlehem Iron Company III
the purchase Of extensive ore lands III oon'h-
eastern Cuba, and about $4,000 tons OF ore
month were imported from tins source III"
works at Steelton cover $50 acres: at Sparrows
Point 900 acres and, all told, the corporation
employed 5000 men,
Tho officers Of the Pennsylvania Company are:
luther s. Bent, president; H. +. BARKER VICE
nresident. + y Smith, secretary and treasurer;
F. w Wool general manager; t. - frl,on'
suncrin,endent Directors Luther S. Bent. Eben
+ Barker Edmund Smith. H. ii. Houston. William
NJ Sp,cl,man, Charemagne Tower, jr., and Wayne
MacVcaqh.
Among the stockholders are the Camerons,
Edmund Smith. formerly first vccpresdent OF the
Pennsylvania Railroad n. II. Houston director
Of the PENNSYLVANIA Railroad, and the estates OF
Thomas Ascot, J. EJgar Thomson and Samuel
VI. FELTON,.
Baltimore. April 81 lSpecian.-Financial circles
were surprised this afternoon by the announce
ment that President +. w. Wood. OF the Mary
land Steel Company, had been appointed receiver
for the company upon an application maze oy
Alfred Earnshaw. the Joseph II. Foard Company
and the PENNSYLVANIA Steel Company. IL was
said in banking circles that the Maryland Com
many made an effort last week to obtain large
lean in this city to tide them over, and that
four mr. five Baltimore banks held over 100000
Of the company's paper. Officers Of the banks
say that they have perfect confidence IN both
the PENNSYLVANIA and the Maryland companies,
which are virtually one and the same corpora
ton The embarrassment is regarded az only
temnorary and it is believed that IN" company's
assets are largely in excess OF its liabilities
Tie petition for tho appointment OF receiver
OF the MARYLAND Company says that the com
ponv il indebted TO Alfred Earnshaw and the
joseph r. Foard Company. The totai indebted
ness consists Of "A mortgage Of S?,GOO.OoO secured
on all the property. and floating Indebtedness
to banks and individuals OF about sl,6oo,ooo
The new material now on hand. material in
process, of manufacture and finished product
amounts 10 about S2,OO0,0O0 in value, if disposed
of i'm due course of business. The DIS receiVape
RAbs~