The times. [volume] (Richmond, Va.) 1890-1903, 1893-02-21
IN RECEIVERS HANDS.
THE PHILADELPHIA And READING
RAILROAD COMPANY.
The Great Battle Between the Vanderbilt
and Mcleod Forces i'm the Stock Ex-
change-Reading Routed.


rumors on the street that receivers were
to be appointed. The officers OF the
| United States Circuit Court were con-
stantly bes.eged oy newspaper men and
parties interested in Relding matters, who
were eager to obtain the latest news.
About 2:3o o'clock this afternoon At
torney John G. Johnson ard Lawyer
| Thomas Hart, Jr., made their appearance
! and were closeted a long time with Judge
| Dallas in the chambers. Clerk OF the Court
| Bell was kept busy going TO and fro, but
| could not give any news until something
| official had been done. This did not take
! place TIL a few minutes past. O'Clock,
when the announcement was made that
Judge Dallas had made the appoint
J ments. The proceedings was brought by
ex-senator Thomas C. Platt. of New York,
a holder Of third preference bonds, against
| The Philadelphia and Reading Railroad
! Company, the Philadelphia and Reading
| Coal and Iron Company and the Penn
| sylyania Company for insurance on lives
and granting annuities. Of this city. The
| receivers appointed are Archibald A Nc
| LeOd the president Of the company; Chief
| Justice Edward NJ. PaXson. Of the SUI
preme Court, and Elisha Wilbur. expires
| idcnt of the Lehigh Valley Railroad Com
panv. Judge Paxson at cnce sent In hls
! resignation IS chief justice OF the Su-
preme Court of Pennsylvania to Cow
ornor Pattison. The security OF each re-
| ceiver was fixed at 100000, for which they
are 10 enter their own bonds George j..
| crawford WIS appointed master. n slml
lar bill. il was said, is to be Med NJ
Treaton. n. j.. late this afternoon or TO-
morrow morning
Panic In wall street.
NEW YORK, Feb. @.-The th.Iu u,y
! of the great battle between the Nd"ut
/ hilt and Mcleod forces opened ou ~,
! Stock Exchange this morning Wne" u"
! slquehter of Friday and Saturuay W.
| continued. and the Reaaihs . lou' ,nn Ex.
foot and artillery The moment l"I -r,
| chonoe was opened for business huse
! h1ocl9e of Roading were thrown on tie
r,orkGt and inside of twelve minutes tle
| ,rica vas hamu cred down six ana a nan
! noints making a total decline since the
| downward movement began OF slN,eTn
and a half points. Then the usuil snsnt
! reaction set in. and the Vetocity oi ~e"o
was momentarily checked. ,.,,
The scenes at the Exchange throughou.
! tho morning were exciting, the galleries
were packed TO suffocation Dy an IN
| meuse crowd which was interesIeu ant
! amazed at what it saw. On the hoVi
| pandemonium reigned Around the heau-
| ing post there was WIG stlusshIie
| mass Of panic stricken humanity. btoSrtS
! fumped roared, yelled, gestlcuated' Inc
| ro,r arising from a babel Of thousands Oh
| voices extended beyond the walls or the
building and caused passers by to stop IN
| amaZement. 1t was pane broheis
| tumbied over each other In their wlId
| eagerness to unload. Reading was thrown
on the market in big blocks OF from , iO1'
| TO II. 900 shares at a time. Keadihs hfe',
| second and third income bonds dropped
| a point a minute.
The Northern Pacific. too, was ahected'
! and owing to the charges made by the
| investigating committee against henry
| Willard and the present management,
dropped several points.
New York and New England stock was
| also raided by the brokers. II closed
| Saturday at Al Is and opened at 40, and
| broke rapidly to "a 1-2. 1t is stated to-day
that Lehigh Valley would pass its divi-
| dend. IL is due in April. This would pc
the first time in its history.
What Caused the Break.
Various reasons are given for the fall
| in value Of Reading stock. Whether the
bear movement is connected with the
plans and projects OF President Mcleod
! i'm New England Is not certainly known.
But indications are that the NanderDht
| interests have attacked Reading ana New
| York and New England in order TO en-
| barrass the proposed extension OF Read
| ing's influence in the New England states.
AIR Peirpont Morgan is credited with
! making the attack on Reading. one ac-
count of the trouble is that while Mr..
| Morgan was willing to see Reading assist
his favorlte Pennsylvania and other coal
roads in hoisting the price Of coal, he
was not willing to have the bold Me-
| Leon 20 I'D and take a bite out OF the
| rich plum which Mr.. Morgan had so
long enjoyed In the monopoly Of rail trade
| between New York and Boston,
OF course. in buying control OF the
! Eastern roads the Reading gave promises
TO pay. and put its own stock as coliat-
| erai When the value for this collateral
decreased more was called for. When II
| was not obtained. Of course the
| collateral was thrown on the market 10
| bring what It could. This explains the
annearance of those huge blocks OF stock.
| The rule on Saturday was TO sell III not
| less than lOOO-share blocks.
To strike out into new trunk line
| With possible complications in the al
| ready strained east and west through rates
| meant the enmity Of the Pennsylvania
| railroad owners and the big Philadelphia
! house OF Drexel, likewise the dislike or
the Vanderbilts, with all their far-reach-
| inc nower for cheekmating, while the
| Eastern extension met the displeasure or
| Mr. Moran and the New Haven road
| mi}honalres. It was so easy to squeeze
n little in the most vulnerable part or the
Reading. its loan account. 1t was only
| a nuestion Of time until the weH-informed
and powerful combination put on the
| nresstIre and stood below TO catch the
| rich juice as II fell.
! on the other hand a Philadelphia nnan-
cier. who holds confidential relations with
! President Mcleod gives this as the cause
| Of the break:
Reading is perfectly sound. lf | had
&. 900 600 would not hesitate In loanins
II 10 the company. This break was caused
| by a sudden and imperative demand upon
| the part OF a heavy creditor Tor SzVOOVV.
The company did not have that amount
| on hand and its efforts TO secure II Gre
| ated distrust. This led several large
holders TO unload their shares. the mar
kat naturally soft on account OF the un-
settled monetary situation was iliaue ~
! absorb the heavy load. A bad break oc-
| Cured. This started the public. IL was
like a run on a bank. Reading staplilty
is now undergoing a crucial test But II
| will come out all right
| The tension on the market was terrihc.
| T1e strain was too great for many nrhs
| and shortly after noon some faiiures be-
can 10 he announced. The first TO go by
sha hoard was w. +. Russell Of No. 81