The sun. [volume] (New York [N.Y.]) 1833-1916, 1896-05-02

BOSTON CLOSING QUOTATIONS..


vestors occurred to-day, yet II was passed over
bv the Street as simply a routine step in q reor-
ganization programme. The entering of a de-
cree for the sale of the Reading Railroad prop
erty in foreclosure proceedings Is Of more than
ordinary interest, because II establishes the
right of the holders of the obligations of a rail-
way corporation to enforce their lien. Especial
interest attaches to the event because tho
holders Of Junior securities Of the Read
ing Company have maintained all along
that the holders of tho general mortgage
bonds would not dare to enforce their legal
rights because by doing so they would lose a
valuable charter, which in all probability could
not be duplicated. The attitude of the Junior
security holders has been almost one of def
ance. but time and the courts havedemonstrated
that they mistook the temper Of the bond
holders. and also the value of tho technicalitics
upon which they relied In their efforts to COM
pol mortgage creditors to sacrifice q portion
Of their claim. 1t will be remembered
that the original formed to
protect the interest Of the general mort
gage bondholders of the Reading Company
stated distinctly that their purpose was not TO
reorganlze the property. but to collect the obli-
cations II had issued. The that sub
sequently undertook tho reorganization Of tho
company accepted this view. and in consequence
the Reading Company will at last be reorRan-
ized upon q basis that will forever dispose of the
claim that q railroad mortgage bond means one
thing when issued and something else when the
holder attempts to enforce his claim.
The Reading decree Of foreclosure. together
with those issued in the Northern Pacific litiga-
ton and in the st. Louis and San Francisco
case this week. should encourage investors: be-
cause the feeling has heretofore been altogether
too prevalent that well-secured mortgage cred
itors of bankrupt railway properties should
share in tho sacrifices which stockholders and
other Junior security holders are called upon to
make because of the misfortunes or mis-
management, or both. Of the mortgage
properties. The three foreclosures men,
toned foreshadow rapid and uninterrupted
progress in the reorganization OF the Reading,
Northern Pacific. and st. Louis and San Fran
cisco systems. And now that Congress Is APP
parently indisposed to take any steps to protect
the lien OF the Government upon the Union Pa
cifo and Kansas Pacific railways. there would
seem to be no substantial reason why the fore
closure OF the mortgages upon those properties
should not be expedited. The Government Is
entitled to no greater consideration than any
other creditor. and II the representatives of the
people, for personal or political motives,
decline to protect that interest. they,
and no ono else, should be held responsible fer
the entirely unnecessary loss the Government
may sustain. Unless the holders OF the prior
liens upon the two Pacific roads mentioned show
pnnsnal conrtesv To the Government the indica-
tions are that every insolyent railway corpora
t,on of inheritance in the United States will
have been rehabilitated financially by the end
Of the present year.
Gold To the amount OF 81. 45o. 600. all Of IL
in bar.. will be shipped to Paris tomorrow.
Early in the day one of the firms that sbips to-
morrow withdrew coin from the Sub-Treasury,
opt "a foresbadoved in this column. the coin
furnished WAS a part of that recently received
in payment for bonds. and being unsatisfactory
10th in veiuht and denomination t. was
nromptly returned. This experience Demon.
strated that the more profitable operation would
be to purchase gold bars at the Assay ONCE at
the premium of 3.le of l q cent. charged by
IN, Government. It 4, understood tina,
the profit upon tho transaction 4, nearly
an eighth Of / o cent. The exchange marke ct
wa. a shsde s.s,er IN consequence OF the opern.
ton. This species of financial blood letting will
doubtless occur from time to time until the cur