The sun., 1893-02-21

|
n0 y1 70 b hfys ier sSfe
unable 'qy ssos fnat the %1 road
been managed with a view to the market for
Il. RSSFaSns mt Gf sS
sRG ennnot
ing obligations"
HOW THE RECEIVERS WE'RE APPOINTED.
PHrLADELPH1A. Feb. 20. For the third tine
In its history the Heading Railroad to-day
stress of the naneini troubles estIs that % have al.
most DESTROYED Its credit and Depressed its
TSe S eS,sn wss G the Sn'
tion 1. q a a x,senator Thomas 6 I,att 81 New
bonds tse on sa'H Which hra Tas @
paid. and on his PRAYER Judge Dallas, IN tho
Stasfs c5at a @n !Hs &
and Pfssidsnt 7 wiiiar VII f'D q ;S@ feEish ya
company and the coal and iron co omrany..
Al tbe same time George l.; rnwiord was as
the receivers. and each OF The latter was re-
auirel to enter bond ior $5O0.Om In order
SsPy Pa1san hm'' a tSs once the sent G1@Ss n liz s
nation to the Govcrnor. o,y by whom it
reeelvership viii last is problenntcal. inas,,
hnsSSsda' sEarse "y,s"'' ,hs N w I've s0 "rss!ous
irien.iiv S of,ort to protect the compamys prop:
srty from attacks from nntrlendly tonrces. It
It's pr predeasssor s% The = rc"eivers @ were a6nont
.! ABOUT o'clock in the afternoon alter a day,
Means a a s0iE aroad rEf' sn4 s
susssr d. e %SsS rssas%; sss nS'i
suits ss' ana @pf the .nSra 'pSI 9nty ,pt
| Of receivers. meeting OF the direc-
tors OF tho company was held IN the
9ans Of sSvnr %sa off m S sH and
Geloc ohp o e. nsf nd nnd nth ThSmss
| whore the Circuit Court is held to take tho
| all.important stoG They were cl9seted for
soeh the Mns mSa @H Ger
BELL that, the application for receivers had
Some surprise was created by the appear
ance Of ex-senator Platt as the complainant.
Mr.. rlatt has never been known as one inter-
understood that he appears In tho present pro.
ceedings not as one having grievance against
resenting the company to ena ble Ito forestal
nnfrcndlv action from other quarters. TINS
ii" Johnson aS who appeared ] ed as Mr. fatt at
torney. is nlso the general counsel Of the
beading Rairoad. and its most active cham.
famous deal e. February CIR r 49, So. p.,s,n, an
cials refused to-day to give any information
as to the causes OF the company's trouble but
n statement is promised for morrow. While
cause of the dreadful slump. enough il known
10 show that the COMPANY was in tight liX.
nts" last pesr 81 sren
ina manens lmnroycments, with the expectation
s' sRSs TSnf the be sefsGTss 6odd
which had really been earned. Spey;er Il
Co; of New York We're 70 negotiate the loan.
In tho mean time individual con operators and
other creditors began to prcss their claims
Mas ty, hn and hn
E.aiins lad to turn to the he bankers These
Influenced by recent movements refused to
over its tiiflcnties and the receivership be:
came necessity. In one case recently a bill
N noeE or e thas
which to settle the remainder Of ft the indcht,
circles hut when: on Feb, y the money pay
saw the beginning Of the crash. on
BEEN @ pecasi ed wfhopS any e edstributi lon '@i Of
sxrlainSd that clerical errors in the pay rolls
had made this action necessary. the greatest
uneasiness prevailed. How far the crash was
by tho readings entrance into New En- gland
II to the Tshns m
Now York. New Haven and Hartford Railroad
Il is impossble,o 70 say. Doubtless this had q
as a borrower. Influences were exerted to |
prevent Eead,nG from securing tie necessary |
'H' TTs i hsh nv Valley faroaS Ire % directors met
today. but accordin: to ono OF them did moth ,
inS syond disGi1sSsng the situation When
what the effect OF Headings failure on Lehgh
NalIoy would be he replied;
AZ ne shs Valley shs lease VII not 10
its obligations under the rcceivership
pssu.s upSsr Ss road the win ps
ty ,tle obligations growing out Of the floating
cevershps o, the Head ing show. that
the leases have remained UNAFFECTED en-
whore the rentals were not paid. The Reading
9TnG1ratcd the the Nine line, IN and SchTylkll Haven
der the last receiyersh!p without Cancellation
of The leases. and there appears TO be every
prospect that # viii maintain the lease Of the
TACT that President Wilbur Of tie Lehish Val,
is generally taken as meaning that two com
panies intend TO stand together and that Ie-
ford will be the master in both the Pennsylva-
mia and New, Jersey receiyerships as Judge
Dallas's jurisdiction extends over both States.
at his hotel this evening. He was in good
am very sorry tnat we were driven to the
necessity OF a receivershp. but it was the
only thing to do. =, Our credit was al
sibie for US to meet our obligations:
before the property was further Injured. i |
want to say that we have coal on hand now |
worth more than enough to pay our toating
obligations. and there will be no trouble IN !
carrying on the company's finances now. Tho
trouble was brought about by the fac. that
we we're doing an enormous business on n
small capital. and when this attack was made |
on us II hurt our credit 80 that we could not
borrow money Manya business man and !
financial institution has been ruined in the |
same way.
The great m enace TO tho Reading ts the pre-.
vious mortgage. Under its terms the compa.
ny is bound hand and foot.
HEAVY SALES ~ LONDON.
LONDON. Feb. 2O.-Athough news OF the |
heavy sales OF leading in Wall street did not ,
reach !Capel Court unit! the closing the move
ment i'll American rails " showed that scare |
was on in New ork.
Heavy selling orders received by brokers |
from holders of Reading this morning We're
executed medateiy aEter the opening. and |
had Immediately Il depressing effect upon all |
American railway securities Heading dropped |