Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1893-02-21
APPLICATION BY sen. PLATT.
Ihs Company Said 10 Have Failed 10
Meet lis Liabilities.
THE LOSS. SINCE FEBRUARY.
rrfsideut Mcleod Says - Receiver
ship Was the Oniy Thing
Possible.

ElllLADILililAt Ehps -'s 49,
Reading Railroad, about the financial
condition OF which 30 many rumors
have recently been in circulation, wat
placed In the hands OF three receivers
today. Application was made by ex-
United States Senator Thomas C.Plait,
Of New York, as holder of Reading
bonds. Thc petition WAS granted aud
A. a. Mcleod, president OF tue COM
pauy, Il. l.. WILDER OF tho Lehigh
Valley division and Chief Justice
paxsOn OF the state supreme court were
appoiuted receivers. Judge Paxson
has forwarded his resignation as chiei
Justice 10 the governor. The security
Of oach receiver was fixed Mt half u
million. IL In said similar bill Will
be filed at Trenton.
The bill in equity says the com.
plAlnant brings his bill in behalf OF
himself and all holders OF bonds Of
like character. The bill, which IL
extremely lengthy, Invested OF legal
veibage, sets forth the Issuing by the
Reading company In January, 1858, OF
third preference income NOR gage
bonds, which are now In excess Of
$4,000, 900, TO be payable January,
1858, anu with interest payable out OF
thenet earnings OF the railroad COM
Eany Of per cent per annum,
payable the first OF February each
year The bonds we've secured by
certain mortgage executed by
the Reading r0nd aud the Reading
Cosl & Lanu company to the Penn
yiyania company for insurance on
lives and granting annuiIies. This
mortgage conveyed, subject TO certain
phf enoumberances, all properties
l,assd and controlled by the Reading
0npny and those 1t might obtain
ihsnitcr; also all properties Of the
Gal 4 Iron company.
M. Plat sets forth that he Ia the
holder OF u large amount OF these
bonds, the interest upon which be-
came payable ON the frat day OF Feb
nAry last. A demand made by the
complainant upon the railroad com.
pny TO pay him said amount was
ftiused and the company has lied up
10 the present time 10 payI IN any
loftiOn Of the amount which ecsme
due aud payable tho frat OF Fet Iary,
thd the Interest upon other bonds Of
d said Issue held by other owners re-.
mains unpaid. Tine Pennsylvania
company has refused, the bill AYERS, to
loreol0se this mortgage. The bill sets
ioHh that n great income can be de-
ilved from the operations Of the Read.
log railroad and the Coal d Iroa COM
Iauy, aud IL would be disastrous should
the Ousiness OF either be- temporarily
suspended. a large amount OF the
Income now In possession or under the |
control OF those companies Is Justly |
apphcable TO the payment OF interest, |
but the companies have refused to |
Appropriate this income to such pay |
ment, and threaten to apply the same |
70 the payment OF unsecured indebted |
ness.
The bill asserts that the companies,
though possessed OF ample funds, II |
he same were JudlciOusly admins. |
hiedi ~ pay all Indebtedness, are in-
solvent In the sense that they are
Without fdnds In the shape OF cash, or
,ssels convertible into cash, sufficient |
wpay their Indebtedness actually ma.
l1Iel or TO mature Ia q short time.
Tue blll sets forth the vast extent and
value Of the properties, and says the
iallf0ad company owns all the stock Of
he Coal d Iron company, and the
operations Of the two depend largely
upon each other. There IL imminent
sahgtii the bill asserts, OF the property |
icing levied upon, attached anu uisin-
,Wgalel TO the irreparable injury OF |
we creditors, unless the court takes
aouOn' The present condition OF the
eompauy Is stated to be largely the re.
,all OF the demands OF loans for which
ample security IL pledged with the
lenders, but which loans the holders
sutieoi are unwilling to renew. The
t,nplalnant prays that the rights OF
ceiined,
=, resident Mcleod said this evening
Ws' ne would prepare statement, but
~ Nv no' say when. President Earle VI
, MY nance company OF Pennsylvania,
raa u CON mercial agent for the Reading
Eau, SAID this evening that the
IT, sahee company han from eight to
~, million dollars worth OF Reading
Ss nay On hand upon which no advances
ds', Deen made. This amount, he
in, a, was enough to pay the Read.
hoaung debt twice over. Tho
sya.,' ulnloulty, he said, was due 10
nv! oouy demanding his money ut
esn'i when was unnecessary for the
pAny Was able to pay It's debts.
~'llioNs LOST ny STOCKHOLDERS.
piS,,hiw York, Feb. 2O.-Ex.Senator
ItcW, spyahing OF his application for
I'M, ''st i9r the Reading said tonight
nv, US found the company unable 10
iIo, ns uebts and made an ailiuayit to
T NJ eueeI as a basis for the application.
nnv nly desire was to sec IL the com.
On could not be reorganized and put
RmoPet basis once more.
, Hlssell Sage said;
leve S leld Is a smart man aud DO.
Wiz t' ~ n9s Tue support Uf the people
~ a1iu Reading stock"
holis,,w Ai amount lost by the stock.
oelimasln headinR since Februarv IL
'A'ed at sSi,0s4,ll7.
~LEoD rxpLAINs.
ieLa ,daa4DELrHIA, Feb. 20.-presldent
,w ,o Of tue Reading in nm inter'
'onisut SAID hy waa .or. ,i'