Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1893-02-23
RECEIVERS FOR READING.
For the Third Time the Great Corr
poratlon Goes to the Wall.

terday pnsscdinto the hands OF receivers I'M
der the stress OF the financial troubles that
have almost destroyed its credit and de-
pressed its securities to the extent Of many
millions Of dollars. The step was taken
on the application OF ex-senator Thomas
9. Plstt OF New York, the holder of S55,-
COD third preference bonds, the interest on
which has not been PAD, and on his prayer
Judge Dallas, in the United states circuit
court, appointed President a. a. Mcleod.
OF the leading; Chltf Justice y. NJ. FAX
son, of the state supreme court, and Presi-
dent l., Z. Wilbur. of the Lehigh Valley
railroad, receivers for both the railroad
company and the coal ana iron company.
Al the same time George l.. Crawford
was named as master to pass upon the &C
counts OF the receivers, aud each OF the
latter was required to enter bond for
S5DO,O0. In order. to equality himself for
the position Chiel Justice i'aXson at once
sent his resignation to the governor. by
whom 1t was accepted. he receivers flled
their bonds at once and Wall enter upon
the management Of the company immedi-
ately. How long the reeevership Will last
y probiematlcal. lhasmuch, however as
II mas moi been nroWsht ABOUT ny qelatlt
IN the company MED chafSes, as me Two
previous recelverships were, but rather by
a friendly effort to protect the compan%s
property from ATTACKS from uniriendly
sources, ~ IS not pcleSeu mat IL Will pc as
prolonged as It's predecessors.
The receivers were appointed about q
o'clock ~ the afternoon, after DAY Of
great excitement III the stocK market and
OF suspense in Reading railroad circles.
IL became known early IN The day That the
conference at the Aidine Hotel on sunday;
IN which President Mcleod, A: j.: Drexel
ana Others took part, had falled oil results,
and the rumor spread that the company
was to DC placed IN the hands OF receivers.
a meeting oil the directors OF the company
was held III the morning, at winch no way
could be suggested LOT staving oil the re-
celVershiB, ana az O'Clock John y: John-
son and Ihomas Hart, IT., started Tor the
post-oi1ce building, where the circuit court
Is held, to take the all-iinpoftant step.
They we're closeted for some time. with
Judge Dallas, ana about O'Clock the
announcement was made by Clerk Bell
that the application Tor receivers had been
made.
some surprise was created by the appear
ance OF ex-senator Plat as the complain
ant. Mr.. Plat has never been known as
one Interested in Reading, and 1t is pretty
generally understood that he appears in
the present proceedings not as one having
a grievance against the company, but
rather as man OF straw, representing the
friendly action from other quarters. This
view Of the case is confirmed by the fact
that Mr.. Johnson, who appeared as Mr.
ilatt attorney, IS also the general council
Of the Reading railroad and its most active
champion in all the litigation that has fol-
lowed the famous deal OF February, lS02.
President Mcleod and other Reading
| officials refused yesterday to give any in
| formation as to the causes of the COM
pany's troubles, but statement Is prom
ised Tor to-day. While considerable
mystery still surrounds the cause of the
dreadful slump, enough is known to show
that the company was in very tight fix.
| A large proportion OF the company's net
| earnings last year was spent in making
| permanent Improvements, with the expec-
tation that money would be borrowed to
| pay the interest on the preference bonds,
| which had really been earned. Speyer &
| Co., OF New York, were to negotiate the
loan, but some hitch appears to have oc-
CURED. In the meantime individual coal
| operators, from. whom the Reading had
| bought coal, and other creditors began to
! press their claims, There was no money
| in the treasury, and the Reading had to
| turn to the bankers. These, influenced by
recent movements. refused to lend the
| money necessary to tide the company over
| its difficulties, and the recciyership be-
came necessity.
John G. johnson, who represents Mr..
| Plat lin the receivership, said yesterday
that it was an amcable arrangement for
the best interests of the Reading and that
| the company will come out all right in a
reasonable time. 1t was thought best to
make the application for the receivership
| to prevent irresponsible people from issu-
| ing numerous attachments and tearing the
| company to pieces. Under the receivership
| all wages and other running expenses will
| be paid first. 1t is the general impression
that the receiyership will be wound up in
| side Of two years
A special meeting of the directors Of the
| Lehigh Valley railroad was held yesterday
| afternoon. A full and free discussion Of
| the situation in Reading was had, but the
board adjourned without taking any
action. An Official Of the Lehigh Valley,
| who was seen after the meeting, said that
| the most perfect harmony prevailed be-
| tween the two companies, ana that up to
| date the Reading was not indebted to the
Length Valley for Il penny Whether,
however, the Reading will be able to meet
/ its obligations to the Lchigh Valley, which
| are due on March 3lst remains to be- seen,
| Its failure 20 do 50 would doubtless result
| in an annulment of the lease to the Read
| ing, and failure OH the part ol the l.ehigh
| Valley to declare the usual dividend to its
| stockholders which is payable April 18th.
| Speaking of the possible effects of Read
| ing's slump on the lease. VicG.prcsident
| John d. Garrett of the Lehigh Valley,
said:
II don't see that it can have any effect.
So long as the Reading goes on paying tho
| rentals TO the Lehigh Valley the lease will
| not be affected; and, SO far as | can see. the
Reading will be in q better position to meet
| its obligations under the receiycrship than
| under the former management. because
| the road will be operated under the prutcc.
ton of the court and will not be pressed
| by the obligations growing out OF the
| Heating Indebtedness
The history of former rccelvcrships Of