Evening star. [volume] (Washington, D.C.) 1854-1972, 1896-09-23
The Reading Bought by ]. Pierpont
Morgan & Go.
LARGEST TRANSACTION OF THE KIND
Over Twenty Millions Given for the
Property.
HETTY GREEN'S PROTEST

PHILADELPHIA. Pa, September 23.-All
of the assets of the Philadelphia and Read
ing Railroad Company, and the Phiiadel-
ptia and Reading Coal and Iron Company
which are in the hands of the receivers OF
the Reading company, We're sold today at
public auction to c. II. Coster, member
of the firm of ]. Pierpont Morgan K Co. or
New York, who represent the reorganiza-
tiCn committee for s4.5,D0o0. Mr.. Coste!'
came from New York for the purpose of
Kidding in the property. Among those pres
ent were:
President Joseph Harris of the Philadel-
pfIta and Reading Company, j. Lowber
Welsh, one of the receivers; Col. James
Boyd, one of the managers OF the road;
Judge Campbell. general solicitor of the
Reading Company; F. W. Whiteridge and
F. L. Stetson of New York. George f.
Baer of Reading, l.. C. Cleenan, trust Of
fcer of the Pennsylvania Company for
granting annuities, and Samuel Dickson
and Thomas Hart, jr, counsel for the re-
ceivers.
The sale took place in the Old Phiiadel-
phia and Reading depot at 18th and Callow-
hill streets. The assets were divided into
three parcels: First, the shares and bonds
pledged as collateral security under the
terms of an agreement dated January =.
1882. for the payment of an issue of SlUut1,-
tbt collateral trust bonds. This parcel
amounted to Si5,5S4.5's, c. Fl. Coster bid
s3..DD.0o0 for the parcel.
The right to knock the property down to
the bidder was reserved until a bid for the
whole was made The second parcel,
amounting to s2S.25I,.-t]. included stocks
and Gonds owned by the Philadelphia and
Reading Railroad Company and the Coal
and Iron Company. all subject TO pledges.
Mr.. CoSter bid 81 .UD,Otp There no
other bidder. Parcel No. 3. all the. right,
title and interest of the Philadelphia and
Reading Railroad Company, of. in and to
two certain bonds of the Philadelphia and
Reading Coal and Iron Company. One
dated July 1, 1874 for the PRINCIPAL sum of
SSD.HD.GCD and the other dated December
~. 1876. for the principal sum of slo,yD.-
900. Again Mr.. Coster was the bidder.
He named S10OUD the price.
The auctioneer then offered the whole
lot. and Mr. CoSter bid Si,-ta,,Dp, which
was S4oO.U0 above the total price in the
separate bids. All of the securities are sub
ject to pledges.
Just as Mr.. Coster was about to bid on
parcel No. = Robert L. Luce of New York
representing Hetty n. r. Green. arose and
protested against the sale, on the ground
that it was Illegal.
The protest was laid on the auctioneer'S
table and the sale proceeded without fur
Their interruption.
The Philadelphia and Reading railroad
property, winch Is subject 10 the general
mortgage. was sold at noon. 1t, too, was
divided into three parcels described in
the advertisement. with Il par value of
81. ~, 1'i.So. The first parcel was knocked
down to Mr.. Coster for 81 .5U0UtsI, the sec
Ond parcel. which was to secure obliga tons
amounting to S12,T1,ED, went to the same
gentleman for d like amount, while the
third parcel was also bought by Mr.. Coster
for S1,OO0.OoO. The second parcel is subject
to two mortgages. one OF Sl5S.tsD, given by
the Coal and Iron Company on the Hart
man. Myer. Schall and Reed coal tracts,
and another of S15o.h#'. given by the coal
company on the Eagle Hill coal tract. Mr..
Coster deposited with the auctioneer three
checks of siN.01D each. drawn by J. Pier
pont Morgan & Company, to bind the sale
Todays sale was the largest of the kind
that hoss ever taken place in this country,
not excepting the Northen Pacific sale. The
par value of the property of the Philades
phia and Reading Railroad Company and
the Philadelphia and Reading Coal and Iron
Company is estima ted at 500, O00, 900 The
outstanding indebtedness amounts to about
s4''.p1.0O. on which there Is unpaid inter-
est amounting to S6,O0S.vtO. The total
amount of the sale today was s2o.50J,OOo.