The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1893-02-21
RECEIVER FOR READING,
The Railway Company Is in One Of
Its Periodical Financial
Disturbances.
No Money to Pay Interest on
Bonds. or No Disposition to
Do So.
President Mcleod Il One Of the Receiv-
ers-The Chief Justice of Psnnsyl-
vanla IL Another.

PHILADELPHIA. Feb. 20.-Applioation for
. recsiver for the Reading was made in q
bill in equity fled by ono of the stockhold-
ers late this afternoon. Application was
made by ex-United States Senator Thomas
c. Plntt, of Now York, "a holder of Read
ing bonds. Tho petition was granted. and
A. A. Mcleod, president of comp e. +.
Wilber, of tho Lehigh Valley division. and
Chief Justice Paxson, of the state supreme
court. were appointed receivers. in bond of
half million. Judge Paxson has for
warded his resignation as chief justice to
the governor.
The bill In equity says com plainsnt
brings his bill on behalf of himself and all
holders Of bonds OF like character. The
bill, whioh ia extremely lengthy, divssted
of legal vsrbiage. sets forth the issuing by
the Reading company, In January. 1883. Of
third preference income moraaRs bonds,
the amount of which now IL in excess of
$25, 600. 900, to bs payable in January, 1852.
and with interest payable out Of tho net
earnings OF the railroad company, of five
per cont per annum. payable on Feb of
eavh year. The bonds are secured by a
certain mortgage executed BY the Reading
road and the Reading Coal and Iron COM
pany. to the Pennsylvania company. for
insurances on lives and granting ann sitiss:
this mortgage conveyed. subject to certain
prior conveyanoes. all properties leased
and controlled by the Reading company
and those ii might thereafter acquire; also
properties of the coal and iron company.
Platt sets forth that he is the holder of
q large amount of these bonds, interest
upon which became payable on the first
dav of February last. Demand made by
complainant upon the railroad company to
pay him said amount WAS refused, and the
company has failed up to the present time
to pay him any portion Of the amount
which has become due and payable the frat
of February. and interest upon ether bonds
OF said issue held bv other owners remains
unpaid. The Pennsylvania company has
refused, the bill AYERS, to proceed in equity
to forecloss ths mortgage. Tho bill sets
forth that great income can be derived
from tho operations of the Reading rail-
road and Coal and Iron company. and it
would be disastrous should the business Of
either be temporarily suspended. A large
amount of the income now in the possess
sion or under the control of those COM
panies is justly applicable to the payment
panies have refused to appropriate this
income to such payment, and threaten
to apply the same to the payment of their
unsecured indebtedness. The bill asserts
that the companies. though possessed of
ample funds. if the same were judiciously
administered. to pay all indebtedness, are
insolvent in the sense that they are withous
funds in the shape of cash, or assets con.
vertlble into cash, sufficient to pay their
inGebtcdness actually maturea or TO mature
in a short time.
The bill seta forth the vast extent and
value of the properties and says the rail-
road company owns all the stock of the
Coal and Iron comuany and that tho ope-
rations of the two depend largely upon
ench other. There is imminent danger the
bill asRerts. of the property being levied
upon, attached and disintegrated, to the
irreparable injury of creditors, unless tho
court takes action. The present condition
of the company is stated to be largely the
result Of demand loans for which AMPLE SO
curity ia pledged with tho lenders, bu.
which loans the holders thereof at present
are unwilling to renew
he complainant p nys that the right of
Eoldets of third preference bonds be de-
hned. the Pennsylvania company required
to institute proceedings, receivers appointed,
etc.
President McLeod said this evening that
be would prepare a statement. but did not |
say when. President Early, of ths Finance
company of Pennsylynnin, and CONNER
clal agent for the Reading road, said this |
evening the Finance company has from |
IS OO0, ,00C0 to $4,000, GEO worth of Reading
coal on hand upon which no advances had |
been made. This amount, ho declared, WIS
enough to pay the Reading floating debt
twice over. The present deficiency. he snid, |
was duo to everybody demanding his
money ut once. which was unnecessary, for |
the company was able to pay its debts.