The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1893-02-21

minutes johnson left hurriedly from the
building without waiting to answer
questions.
At O'Clock Harte came out of the
Judges room and went straight to the
office of the clerk Of the court.
An application for receiver for the
Reading railroad was made in a bill in
equity filed by one OF the stockholders
nate this afternoon. The bill has not
yet been made public.
The application was made by ex-
United States Senator Thomas Q. Platt
of New York, as holder OF Reading
bonds. The petition was granted, and
IA. A. Mcleod, president OF the company,
E. P. WILDER Of the Lehigh Valley divis-
ion, and Chief Justice Paxson OF the
<state supreme court were appointed re-
delivers, in bonds OF $500, 900. Judge
! Paxson has forwarded his resignation as
schie. justice to the. governor.
The security OF each receiver was
hin will be filed at Trenton, N. J.
The bill in equity says the complain
ant brings his bill on behalf of himself
and all holders Of bonds of like charac-
ter.
The bill, which is extremely lengthy,
Invested of its legal verbiage sets forth
the issuing BY the Reading company in
January, 1885, of third OF the prefer
ence income mortgage bonds. the
amount of which is now in
In January, 1868, and with interest pay
able out Of the net earnings OF the rail
road company Of per cent per annum,
he arat Nf Eahrsxo ~f IL
year; the bonds being secured by a GER
road and the Reading Coal and Land
company to the Pennsylvania company
for assurances on lives and granting an
nuities. This mortgage conveyed, sub
jeot to certain prior encumbrances, all
properties leased and controlled by the
Reading company and those it might
thereafter acquire; also the properties
yof the coal and iran company.
, Plat sets forth that he Is holder of
q large amount OF these bonds, the in
terest upon which became payable on
the first day of February last. A de-
the railroad company to pay him said
has failed up to the present time to pay
him any portion, OF the amount which
became due and payable the first of
other bonds of said issue, held by other
owners, remains unpaid.
The Pennsylvania company has re-
fused, the bill AYERS, to proceed in
equity to foreclose the mortgage. The
bill sets forth that great income can
be derived from the operations of the
ID ~of1roo1 o~I Ha n@ol
company, and that 1t would be disas-
trous should the business of either be
temporarily suspended. A large
session or under the control of these
companies is justly applicable to the
payment of interest, but the companies
have refused to appropriate this income
TO such payment and threaten to apply
the same to the payment of unsecured
indebtedness.
The bill asserts that the companies,
though possessed of ample funds, if the
same were judiciously administered, to
pay all indebtedness, are insolvent in
the sense that they are without funds
an the shape of cash or assets convertible
into cash, sufficient to pay their indebt-
'edness actually matured or to mature in
o short time. The bill sets forth the
vast extent and values of the properties,
and says the railroad company owns all
sthe stock of the coal and iron company.
and that the operations of the two de-
pend largely upon each other. There is
imminent danger, the bill asserts, of
the property being levied upon, at
tached and disintegrated to the irrepar.
able injury OF the creditors unless the
court takes action.
The present condition of the company
is stated to be largely the result of the
demands of loans for which ample
security is pledged with lenders but
which loans the holders thereof are at
present unwilling to renew.
The complainant prays that the
rights of the holders Of the third
preference bonds be defined; the Penn
sylvania company required to institute
proceedings. receivers appointed, etc.
President Mcleod said this evening
he would prepare statement, but did
not say when.
President Earle of the finance COM
pany Of Pennsylvania, and the CONNER
cial agent for the Reading road, said
this evening the finance company has
from eight to ten million dollars worth
OF Reading coal on hand, upon which no
advances have been made. This amount,
he declared, was enough to pay the
Reading floating debt twice over. The
present difficulty, he said, was due to
everybody demanding his money at
once, which was unnecessary, for the
company was able to pay its debts.
A FINANCIAL WAR.