The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-02-21
Failure of the Company TO Pay Interest
on Its Bonds the Basis of the Decree.
President McT.eod's Enemies Revenged for
His Action in Entering Vanderbilt Terri
tory by Leasing the N. Y. & N. E.
THE READING KNOCKED OUT.


Thrown Into the Hands of Receivers by Its
Rivals and Enemies
PHILADELPHIA, Feb 20-The affairs of
the Philadelphia & Reading Railroad Com
pany were brought into court this after
noon. All day there were rumors on the
street that receivers were to be appointed.
The Offices of the United States Circuit
Court were constantly besieged by news
paper men and parties interested in Read
ing matters who were eager to obtain the
fastest news. at 2:30 o'clock this afternoon
attorney John g. Johnson and lawyer
Thomas Hart. jr., made their appearance
and were closeted long tine with Judge
Dallas in chambers. Clerk of the Court
Bell. was kept busy going to and fro, but
could not give out any news until some
thing official had been done. This did not
take place until few minutes past o clock,
when the announcement was made that
Judge Dallas had made the appointments.
The proceeding was brought by ex-Sena-
of third-preference bonds, against the
Philadelphia g Reading Railroad Com
pany, the Philadelphia & Reading Coal
and Iron Company, and the Pennsylvania
Company for Insurances on Lives and Grant
ing Annuities, of this city. The receivers
appointed are Archibald A. Mcleod. presi-
dent of the company: Chief Justice Edward
M. PaXson, of the Supreme Court, and
Elisha p. Wilbur. ex-president of the
Lehigh Valley railroad. Justice Paxson at
once sent his resignation as Chief Justice
of the Supreme Court of Pennsylvania to
Governor Pattison. The security of each
receiver was fixed at S500,OO0, for which
they are to enter their own bond. George
l.. Crawford was appointed master. A
similar bill, it was said, is to be filed at
Trenton. n. J.
PLATT's COMPLAINT.
The bill in equity says the above-named
complainant brings his bill or complaint
against the defendants above named on
his own behalf, and on behalf of all other
holders of bonds of a like character. ten.
dering to such other persons and holders
the right to intervene if they should see
fit. He AYERS that:
On or about the Sd of January. 1888, the Phil
adelphia & Reading company made an issue Of
third preference income-mortgage bonds to d.
large amount the AMOUNT & Of said issue being IN,
were for $1,000 each. Each of said bonds
provided for the payment to the owner at
Philadelphia on the first day of January,
1858, of the sum of 81 900 in gold coin of the
United states of America, OF the then present
standard weight and fneness, with interest
thereon, meanwhile, payable In gold coin on the
1st day of February of each year, only out Of the
net earnings of the railroad company for the
fiscal year ending the 30th day of the preceding
November, available for the purpose, up to per
centum per annum, after providing for certain
payments t therein set forth land and enumerated mi
mortgage bearing date the Sd OF JAN
uary, 1888, executed and delivered to
the Pennsylvania Company for Insurances
on Lives and Granting Annuites. This mortgage
thus executed delivered to the said company was
duly accepted by it in writing under its seal at
tested the 9th day OF March, 1888. 1t was duly
recorded In accordance with law IN all the coun-
ties of the State of Pennsylvania, and in other
places in which the mortgaged property was
situated Said mortgage, subject to certain prior
membranes therein recited. conveyed all the
railroad properties and railroads owned, leased
and controlled by the Philadelphia " Reading
Railroad Company, and all railroads and railroad
properties which it might thereafter own. lease
and control.
The com plainant is the holder of $55. 900 third
preference income mortgage bonds, ioterest
upon which, to the amount or &2,700. became
payable Oh the first day of February, 1893. De-
lnand was made In writing by the complainant
upon the railroad company. prior TO the filing of
the present bill, Co pay the said amount This de-
mand was refused by the said railroad company,
him any portion of the amount which became
due and payable on the first day OF February,
1893, upon said bonds. Interest upon other
mains unpaid by $he said railroad company.
This complainant, .howeyer, Is without the
requisite knowledge or information to state the
extent of the default In payment Of said other
interests.
The complainant has demanded OF the Penn
eylvania company for insurance on lives and
granting annuties, that it shall, because of the
default in payment of the interest, proceed in
equity to foreclose said mortgage and to bring
about q sale by judicial process OF the mort
refused to institute such proceedings, but 1t has
also refused TO make entry upon the mOrtgaged
and to sell or to proceed to sell the mortgaGcd
premises. The complainant is advised by coun-
sci, and, therefore AYERS that 1t Is the duty OF
the said trustee, by reason or the DEFAULT OF the
said railroad company TO pay interest upon the
bonds. to foreclose the mortgaged premises for
the benefit of the holders OF the bonds.
The lill is very lengthy. and alleges the
company to be without means to pay Its
fore asks the court to intervene for the
protection of bondholders and employ es
alike.
THE RECEIyERsHIP ORDER.
The order of the court directs and DEGREES
that Archibald A. Mcleod. Edward NJ.
Paxson and Elisha p. Wilbur be and are
hereby appointed receivers of the corpora
tions defendants. and of all the railroads
and canals owned, leased or operated by
the Philadelphia d. Reading Railroad
Company, and of all real and personal
property of the Philadelphia &
Reading Coal aud Iron Company, and
of the Philadelphia IL Reading Railroad
Company of whatever kind ana descrip-
tion and wheresoever situated. The said
receivers are authorized TO run and operate
the said railways and canals. and operate
such other railways as the Philadelphia d
Reading company holds under lease or
otherwise and has heretofore run. The re-
ceivers are authorized and directed TO keep
the mines and other property OF the coal
and iron company employed and used in
the manner they have heretofore been
used and employed. so far as the receivers
shall deem to he for the best interests of
all parties concerned. The iniunction
asked for restraining any of the defendants
from interference in the management of the
property Is granted.
President Mcleod, of the keading rail-
way, denied himself 10 all newspaper men
to-day. but late this afternoon announced
indirectly that he would prepare state
ment of the company's troubles. He how
ever. gave no animation as TO when this
would be done. but 1t is thought probable
that it will he given ont tomorrow.