The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1893-02-21
REcEIvERs ron raE READING
Three PFOminept Mon Appointed 0l
Thomas c. X1ate's Petition.


Thomas c. Eeass's Petition.
PHILADELPHIA. Feb. 20-Application for
q receiver of the Reading road was made
today by ext United States Senator Thomas
e. Platt, of New York, as a holder of
Reading bonds. The petition was granted
and A. A. Mcleod, president of the COM
pany. E. P. Wilber. of the Lehigh Valley
division, and Chief Justice Paxson, Of the
ceivers in bonds of $4,000. Judge Pax
justice to the governor. 1t is said that
bill will be filed in Trenton, N. j.
The bill in equity says the complainant
brings his bill on ehaif of himself and all
holders of bonds Of like character. The
bill, which is extremely lengthy, divested
of legal verbiage, sets forth:
The issuing by the Reading company in Jan.
uary. 1855. OF third preference income mortgage
bonds. the amount OF which is now in excess of
5000 600, to be payable January, 1885, and with
interest payable out of the net earnings OF tho
railroad company of 5 per cent per annum,
payable on February OF each year, the bonds be-
ing secured by certain mortgage executed by
the Reading road and Reading Coal and Land
Company to the Peunsylvania company for in
surance on lives and the granting of
veyed, subject to certain prior en-
cumbrances, all properties leased and
controlled by the Reading company, and those
it might hereafter acquire: also all tho proper
ties of the coal aud land company. Complainant
sets forth that he is q holder of a large amount
OF these bonds, the interest upon which became
payable on February last demand made by
complainant upon the railroad company to pay
him the said amount was refused, and the
company has failed. up to the present
time, to pay him any portion Of the
amount which became due and payable
on February l, and that the interest upon other
bonds OF said issue held by other owners aso
remains unpaid. The Pennsylvania company
has refused to proceed in equity to foreclose the
mortgage.
Complainant then sets forth that q great In.
come can be derived from the operations of the
Reading railroad and the coal and iron com.
pany, and that it would be disastrous should
the business of either be temporarily SUSPENDED.
large amount OF the income is now In the
possession or under the control OF these compa.
nies, justly applicable to the payment of inter
est. but the companies refuse to appropriate this
income to such payment and threaten TO apply
same to the payment Of unsecured inde debtedness:
that the companies, though possessed of
ample funds. If the Same are judiciously ad-
ministered, 70 pay all Indebtedness. are inaol.
vent in the sense that they are without fund,
IN the shape of cash or assets convertible into
cash sufficient to pay their indebtedness act.
ually matured or to mature in a short time:
that the vast extent and value OF the properties
IL set forth and the statement made that the
railroad company own all the stock OF the Goa,
and iron company. and that the operations Of
the two largely depend upon each other; that
there il imminent danger Of the property
being levied upon. attached and disinte-
grated 70 the irrepara be injury OF the CREDITOR
unless the court takes action: the present con.
ditlon OF the company is stated TO be largely the
result Of demands OF loans for which ample se-
curity il pledged with the lenders. but which
loans the holders thereof are At present unwili.
ing to renew. Complainant prays that the right
holders of third preference bonds Be defined:
that the Pennsylvania company be required to
institute proceedings. that receivers be ap-
pointed, etc.
President Mcleod said this evening that
he would prepare statement. but did not
say when.
President Earles. of the finance com.
pany Of the Pennsylvania and commercial
agent of the Reading road said this even.
ing that the finance company had from
$500, 900 to $40 oOo,00o worth of Reading
coal on hand upon which no advances
had been made. This amount. he declared.
was enough to pay the Reading floating
debt twice over. The presen, difficulty.
he said, was due to everybody demanding
his money at once, which was unnece.-
sary, for the company was able to nav its
debts
NEW YoRK. Feb. ao-Ex-Senator Pla.t.
speaking of his application for receiver
for the Reading, said tonight that he