New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1880-12-07
THE READING R4ILR0AD DEBTS.

| MIR. GOwEN SUBMITS PLAN TO PLACE THE TWO
COMPANIES on A Ntw BAsIs-HE SAYS AMPLE
CAPITAL Is PROMisED-pKTAIIS OF THE PLAN.
PHILADELPHIA, Dec. Cat full meeting
Of tue American counnittee of the Pn4dclpLa
and Reading Railroad Company. held IN
Philadelphia to-iay, every member being
present plan for the relief Of the Company
from us financial difficulties presented 10y Mr..
Gowen the president OF The company and after
iuaiIon was unanimously approved and mended
by the committee for adoption by the company The
Board OF Manag gers OF the company will meet to
morning take action upon IT, aud as four out OF the
six directors members OF the committee there is but
utle doubt that 1t Will b. approved by them and that
Mr. Gowcn viii be iully empowered to act under It.
The plan involves the payment OF the floating debt by
the issue pro shareholders o. deferred income
bonds at 80 per cent which entitled To dividends up
to per ont OF toe earnings only after the common
shares have bad per cent further dividends
rank pl passu. with shares. This reduces the
fixed charges 100000 per annum; but, to insure a
further Mr. Governs plans involve the issue
Of new snSo n % or @ YgcS per SoG5 @ funding
classes, and B-$75. 100000 each class-A having
pr Ori,y or lien and interest cnarge over Chase B
with this issue II Is proposed, by purchase or ex
change TO rore all present indebtedness and toacque
by purchase the securities OF the companies owning the
leased lines IL IL estimated thit Sli0.0OOOOO Of the
new wI provide Tor all OF tins. tne total interest
OF which would ne 81 100000. as assnst dxed charges
interest. sinking funds AMI rentals If %,
making annual sav.Dg Of $3,657.116 ss.
docs not expect To hccutG lar
nual reduction, OWING TO the impOs.Ibiy Of Iurcias-
ng the higher securities. Fnd 10 the appecHtioa OF the
market OF the lower ones when IL II known thai
fund Is provided for their purchase. but he expects
within the year to accomplish saving OF at least h
Der cent Sl00,00O.OOO making Tl,JO0,UOO and 10
save stl further 100000 bY tic deferred Issue, and
5000 900 the sinking funds. making an annual reduc
ton of Xed charges Of S27OO, 600.
An elaborate report upon t1e condition OF the com
pany was issued to-day by Mr Gowen, ,racing the
above plan. containing the statement that all the
canitai necessary the plan offered him.
aud that about tU visit Europe for The purpose OF
negotiating the issue
THE ASSETS OF THE TWO COMPANIES.
Mr Covers statement contained a condensed balance
sheet railroad and coal and iron company show
ing OF $50 900 IN excess of liabilities, and
Sl6OOo,O 900 in excess of debt and share capital
These Valuations with The exception Of the coal lands
estimated at $3.50 per acre, and the leased lines.
valued ut 81. 100000. stated TO be from
careful valuations. aud hr G0wen claims
tue estimate, coal lands and leased lines are far he
years business show for botn companies cash surplus
of S364 797 l allowing for relief by the previous pay
ment Of 81 .55l AL III scrip
The report contains elaborate review or the values
coal land property aud e Importance to the railroad
company concludes with defence Of the transpor
tation department from the charge Of eLtraya-
CANT management, showing by long table that.
panies, for the difference in which special
roasons arc gwen the Reading Railroad Is the most
Economically worked road In the Uni, ed States The
oorrespondence between Mr. Powell aud the Company
aud the report upon the coal lands By Mr. Harris
annexed 10 Mr.. Gowens statement as an appcndI.