The weekly tribune. [volume] (Great Falls, Mont.) 1891-1894, 1893-02-24
RAILROAD COLLAPSE
The Reading Railroad Company Has
Been Placed i'm the Hands
Of Receivers.
The Catastrophe was Brought About
By the Short. Sighted Policy of
the President of the Co.

NEW YORK. Feb. 2O.-Ihe appoint
ment of A. A. Mcleod, Chief Justice
Edward Paxton and f.. p. Wilbur, as re
c~eivers for the Reading Railroad com.
pany, was announced this noon. This
marks the crisis of one of the most
dramatic episodes in financial history
Much of the inside history of the fall OF
the Reading management is yet to be
told but the climax of the affair was the
appointment of receivers today. 1t is
safe to say that no one of those who
have foreseen that disaster must follow
the course the Reading management has
pursued since the formation of the coal
combination a year ago has foreseen any
such tremendous catastrophe as that
which Wall street witnessed during the
past three days.
1t is safe to say that not even those
who brought about this catastrophe had
any idea of how tremendous would be its
effects. 1t is felt by Wall street men
that if any n could have realized its
extent it would have been the members
of the luckless Reading pool. 1t is urgel
that they must have foreseen that disas-
ter was impending-must have known
on what extremely thin ice their repre-.
sentative was skating-and must have
realized that, with the available money
of the coterie spread out on narrow mar
gins on the stocks of three great rail.
road systems, a decline of any magnitude
in price of Reading must have been at
tended by dire results. 1t was: probably
for this rules the conclusion
of the ~street-that they have made such
strenuous effort to keep up the price of
Reading. For it was pointed out only
about a month age when the annual re-
port of the Reading was issued. 1t was
full of hope and encouragement for the
stockholders.
President Mcleod, in the report. told
the stockholders that the future Wa
full Of promise. That one month after
the issuance of this report the stock of
the company should decline % points
and that the appointment of receivers
should be necessary, seemed almost in
credible.
In s~eaching for the causes which
brought about the fall of the Reading
company. it is unnecessary to go over
again the ground which is familiar TO
everybody. The public understands
when Mr.. Mcleod, unsatistied with
the results attained by his coal cotnbina-
went into New England territory
acquired control of the Boston N
and a large interest in the New
company. he a~ntagoniZed
the New York, New Haven & Hart
ord and the great capitalists be
hind that company. 1t is generally
believed that the New Haven manage
nent had looked for the acquisition of
he New England at some time at its
price, Mr.. Mcleod must have
Known this. The general public did.
Hence the news of Mr.. McLcod's pur-
of the New England was received
with the greatest surprise. That any
nan and particularly a man no stronger
han Mr.. Mcleod should voluntarily
intagonize the New Haven management
incomprehensible. Mr.. Mcleod
S reported to have answered one of his
and allies who demonstrated
With him in this manner: ~ will not
De dictated to by Mr.. Morgan. | would
ather run a little one-horse country
oad.'
a concensus Of opinion is that from
he day that Mcleod entered into New
territory the Reading company
lnder his management was doomed.
The exact methods employed in bring
ng about the results of the last three
lays may be known IN time. They are
only inferred from such facts as are
t hand. There is speculation also as to
nea the smash was the result of
Iuman efforts in that direction. and
far it was merely the natural result
I the folly and rcckiessness Of the man.
cement. There are those who believe
was the result of both.