The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-11-15
COAL BARONS AT SUIT
FUEL COMPANY WITH HEADQUAR-
TIERS HERE GOES INTO A
RECEIVERS HANDS
PROTECTION OF BOND OWNERS
That Is the Reason Assigned by
Local Officers for the Legal Pro-
ceedings Which Resulted In the
ReceivershiD - Pennsylvania &
Continue without Interruption.

Ohio Fuel Company Expects to
Continue without Interruption.
The following dispatch came last
night through the Associated Press
from Cincinnati:
The Turney & Jones Coal company, of
Columbus, O.. and the Pennsylvania &
fees also in Chicago. were today by the fed
eral. court put into the hands of the Sc
curity and Title company, of Chicago. re-
ceivers. In the suit of Putnam against these
companies application was made TO have
George s. Beason, of Columbus, also as a
receiver, but on the objection of Samuel NJ.
Felton, receiver Of the Columbus. Sandusby
& Hooking Railroad company, Judge Taft re
fused to confirm Beason, who has been en-
pIoyed by the coal company. Receiver Fell
be considered In the appointment of the re-
eeiver. Judge Taft reserved to a further
date the appointment OF some practical coal
operator as co-receiver with the Chicago Sc,
curity and Title company. These companies
are among the largest that ever operated in
the Ohio coal fields. Their troubles COM
menoed in the summer of 1897 with the
great coal strike. They had large contracts
to NIL in the Northwest and were unable
70 get coal until late in the summer and
then at high price. and with very high
Ieshts. The result was loss of over $500
eOO at that time. This summer they bought
very large quantities of coal, which is still
on their docks, while their collections have
been very slow. AS they bought the coal
early a great deal of paper has fallen due
before receipts were coming in. The crisis
was brought about by New York parties de-
caring 81 due the whole of an issue of $2SO. 900
OF oohsauons, because one of the Install
ments was not paid promptly. The liabilities
amount to s. 200. 900. The officers of the com
pany claim they will pay the liabilities in
full II The assets are carefully handled The
two companies were owned by the same
partlesLmostly by H. D. Turney. OF Column
ous, and John S. Jones. of Chicago-and had
TO stand or fall together. The mines of these
companies furnished about one-half of the
coal tonnage OF the Columbus, Sandusky &
locking railroad, and the future Of that
done by the newly appointed receivers OF
these coal companies.
BONDHOLDERS DID IT.
E. NJ. Platt, resident vice president
of the Pennsylvania & Ohio branch of
the fuel company. when shown the
above dispatch last evening. had the
following to say concerning the pass
ing of the company into the hands Of
a receiver:
ut is a mistake to suppose that any
losses in the ordinary transaction Of
business had any bearing upon the
appointment of the receiver. 1t is true
the company sustained some losses In
1877. as stated in the telegram, but the
amount was much less than $500, 600
and this year the company's paper was
being met as fast as 1t fell due. The
real cause Of the application was the
demand OF Eastern bondholdars for
the immediate redemption of the COM
panys bonds, and the application for
receiver was the result of an annie
able arrangement for the protection of
the company. The bonds In question
were issued two years ago. when the
Pennsylvania & Ohio Coal company
and the Turney & Jones company con-
solidated. The bonds were purchased
by New York investors, and in the
course of events all came due, at the
same time. The redemption OF the
bonds called for a large sum of money,
particularly at this season of the year
when the cOmpany's business is at its
height, and so when the holders of the
bonds insisted upon immediate redemp-
tion. the affairs of the company were
placed in the hands of the court to
prevent unfair advantage being taken
by the bondholdeis. AS nearly as
understand the situation the company
viii continue to conduct its business
as heretofore, until such time as the
question of the bonds may be settled
when ii will reassume IT'S former indie
pendent course Of business. and while
the appointment of the receiver may,
pearance OF q failure, such Is in no
wise the real status.
The appointment Of the receiver viii
have no local effect. The company has
practically no creditors in the North
west. particularly in ST. Paul, other,
OF course, than ordinary outstanding
business obligations, and its assets are
in the best Of condition. No st. Paul
bank is in any way concerned. We
have a large number of contracts on
hand and our docks at Duluth and at
railroad points are loaded With coal 50
that the business of the company viii
no doubt go right on as though its
affairs had not passed into the hands
OF the court So far as | know the
only bearing the appointment of the
receiver can have on the Columbus,
Sandusky & Hooking railroad, referred
II in the telegram, arises from the fact
that the company has been a large
shipper over the road, which runs
through the country where the COM
panyis mines are operated. If il had
not been for the attitude OF the East ri
boadholders, in my opinion, no COM
plicatiOns would have arisen, as the
company, particularly the Northwest
ern branch, with headquarters in st.
Paul. has been doing an entirely salts
factory business"
The Pennsylvania & Ohio Coal COM
pany, as 1t now exists, was formed two
ytars ago by the aInalgamation Of the
Turney & Jones Coal company and
the old Pennsylvania & Ohio company
The Northwestern branch was known
as the Pennsylvania & Ohio company
and operated throughout Minnesota.
the Dakotas and parts Of Wisconsin.
It's he adquaT'ters are in this city. 1t
has a large retail business in both st.
Paul and Minneapolis.
]. s. Jones, vice president of the Tur-
ney-Jones Coal company. and president
OF the Pennsylvania & Ohio Fuel COM
pany, last night gave out the follow
ing statement:
The Turney and Jones company and the
Pennsylvania and Ohio Fuel company have
been put into the hands OF receivers by the
federal courts
Their trouble commenced in the summer Of
1897 with a coal strike. They had large con-
tracts to fill ia the Northwest and were un-
able TO get coal until late in tire sumner
and then ct higher prices and with high lake
freights. The result was loss OF over $780,
Go0. The crisis was brought about by some
New York parties declaring due the whole
some time ago, because an installment WIS
not promptly paid
The whole liabilities amount to about 81
2C0. 900. The companies are owned by the
same parties. and had to stand or fall 20
gether.
Both concerns are in excellent shape and
but for the trouble with the New York gar
believe could have borrowed al the
money We wanted. but rather than permit
these New York parties to secure a preference
submitted to the court indtcate ed