People's Pilot, Volume 2, Number 36, Rensselaer, Jasper County, 24 February 1893 — WRECK OF READING. [ARTICLE]

WRECK OF READING.

The Great Railway Coal Combine’s Enemies Force the Entire System Into the Hands of Receivers—A Wild Day on Wall Street. NEW YORK, Feb. 21—The appointment of A. A. McLeod, Chief Justice Edward Paxson and E. P. Wilbur receivers for the Reading railroad company was announced Monday. This marks the crisis of one of the most dramatic episodes in financial history. Much of the inside history of the fall of the Reading management is yet to be told, but the climax of the affair was the appointment of the receivers on Monday. No one of those who foresaw that disaster most follow the course that the Reading management pursued after the formation of the coal combination a year ago had expected any such tremendous catastrophe as that which Wall street has witnessed during the last three days. It is safe to say that not even those who brought about this catastrophe had any idea of how tremendous would be its effects. In searching for the causes which brought about the fall of the Reading company it is unnecessary to go over again the ground which is familiar to everybody. The public understands that when Mr. McLeod, unsatisfied with the results attained by the coal combination, went into New England territory and acquired control of the Boston & Maine and a large interest in the New England company, he antagonized the New York, New Haven & Hartford and the great capitalists behind that company. It is generally believed that the New Haven management had looked for the acquisition of the New England at some time and at its own price. Mr. McLeod must have known this. The general public did. Hence the news of Mr. McLeod's purchases of New England was received with the greatest surprise. That any man, and particularly a man no stronger than Mr. McLeod, should voluntarily antagonize the New Haven management seemed incomprehensible. The moment the exchange was opened for business huge blocks of Reading were thrown on the market, and inside of twelve minutes the price was hammered down 6½ points, making a total decline since the downward movement began of 16½ points. The galleries were packed to suffocation by an immense crowd, which was interested and amazed at what it saw. On the floor pandemonium reigned. Brokers jumped, roared, yelled, gesticulated. The roar arising from the babel of thousands of voices extended beyond the walls of the building. The opening quotation for Reading was 36—rather, that was the first recorded quotation, for the howling, crazed crowd of men dealing in the stock made it impossible to say what the finst sale was really made at. For minutes the tape was given up to Reading quotations. When not used for Reading, Northern Pacific quotations were sent out. Brokers literally tumbled over each other in their wild eagerness to unload. Reading was thrown on the market in big blocks of from 1,000 to 11,000 shares at a time and snatched up by the bears at panic prices. The stock went down rapidly to 29½, but when the last figure was reached a slight reaction set in and the price rose to 31. The whole market was affected, but there was little trading in anything but Reading. The tension on the market as the day advanced was terrific. The strain was too great for many firms, and shortly after noon some failures began to be announced. The first to go by the board was W. F. Russell, of 51 New street. While the added excitement of this news was still fresh came the announcement of another failure, that of T. J. Delaney, of 74 Broadway. Close on the heels of this came a third, that of G. S. Fleet, of 60 Broadway. PHILADELPHIA, Feb. 21.—Monday afternoon Judge Dallas, of the United States circuit court, appointed receivers for the Reading railroad company upon proceedings brought by ex- | Senator Thomas C. Platt, of New York, a holder of third-preferred bonds, against the Philadelphia & Reading Railroad company, the Philadelphia & Reading Coal and Iron company and the Pennsylvania Company for Insurance on Lives and Granting Annuities.

The receivers appointed are Archibald A. McLeod, president of the company; Chief Justice Edward M. Paxson of the supreme court, and Elisha P. Wilbur, ex-president of the Lehigh Valley Railroad company. Justice Paxson at once sent his resignation as chief justice of the supreme court of Pennsylvania to Gov. Pattison. The security of each receiver was fixed at $500,000, for which they are to enter their own bond. George L. Crawford was appointed master. There is little sympathy among traders or citizens not interested in the stock for the road or its promoters. For a long term of years the Reading has been associated with a reputation for the cruelest form of monopoly, and in the last year the formation by it of the hard coal trust has made it especially odious to the people. The feeling is that the corporation in its cupidity has finally overreached itself. With the failure of its attempt to secure a New England connection, the storedup animosity and distrust toward the management opened up in an unparalleled sale of stocks and the great hard coal road was driven to the wall.