The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-02-21

floating debt twice over. When asked the
cause of the present difficulty Mr. Earle
said 1t was due to every body demanding
bis money at once. which was unnecessary.
The Readings pay cars. which were called
back on Friday before their contents had
been distributed, were not sent out to- day.
When 1t was announced on the Stock
that Reading would be In the hands of re-
ceiveTs the stock rose from IA to
14ls. During the last hour there
was fairly good buying which produced a
recovery to 15s4. In the meantime New
England was growing remarkably strong.
From decline In the morning of tive points
1t rallied to 4034. q fractional advance over
Saturday. There was better tone, too,
among the Reading bonds Lehigh valley
also shared In the Improvement. although
it's movements were extremely feverlsh-
from Az to 40. then back to ass. then
again to 4S, finally closing ut A.
One of the effects of the panic In Read
ing was the failure of Ritchle & Co. They
were caught on the long side and they were
forced under. The failure attracted little
attention on the street"
VIEWS OF PRESIDENT M'LEoD.
A reporter saw President Mcleod at his
hotel this evening, and when asked for q
statement regarding the Reading dilemma.
replied:
necessity of q receivership. but it was the only
thing to do. Our credit was attacked in way
that made it impossible for to meet our obll-
cations, and We had the receivership established
before the property was further injured. want
to say that we have coal on hand now worth
moro than enough to pay our floating o6liga-
tl0ns and there will be no trouble in carrying on
the company's finances now. The trouble was
brought about by the fact that we were doing an
enormous business on small capital. and when
credit so that we could not borrow money.
Many business man and financial institution
has been ruined In the same way. The great
menace TO the Reading Is q previous mortgage
Under its terms the company Is bound hand and
foot. The mortgage prescribes exactly how the
balance on hand at the end OF the
year shall be paid to the bondholders Now
we earned the preference interest last year un-
der the terms of the mortgage. but, as matter
obliged to spend as much in order to earn 1t.
There are six thousand cars On the
are old-fashioned, hold Very little,
are expensive to keep up. and yet we
have had TO use them. as we have had no money
to buy enough new ones. Our locomotives, also.
are not powerful or numerous enough TO handle
our business. We expect to remedy this, for as
receivers We can do some things which We could
not before. We will put the property In the best
possible condition, SO that It will earn all there
is in the trade
One of the heaviest preference bonaholders Of
the company told me today that if we had not
paid that interest he would have applied for q
receivership last month, so that we were
The se LeSgn T Valley u will Hl0 remain rem in WI with us
as before. The New England system will be
maintained. None of our friends have sold their
New York & New England stock. In fact, the
receivership will not affect any of the company's
plans. The receivership forced upon us,
but hope that Will not prove an unmixed bless
ing.
want to say that I never knew how many
friends the Reading had until Oday. We had
offers of assistance from all sides. and the future
of the company is very bright. We are not in
solvent, by any means. We will pay every dol
lar, and the Reading will continue to develop its
system. The coal trade is in wise affected.
The Reading terminal station will be rushed to
com pletiOn