, 1880-12-11
Governs Plan for ReconstFuctfnE
the Reading Companies.
Only Two Great Consultations
Regarded Now as Pract"
!. 'af, cnblc.
Tho Bur1ington-santa Fo and the
New York Oentral-Lake
Shore.

New York oentral-Lake
Shore.
THE READING RAILROAD.
At n meeting 0f the American Committed
tletphfa IL Neadtng Kailrnad Co!npnny held
in Philadelphia few days ago. Mr. GowetI,
tho President, submitted a plan for the re-
lief vi the Company from financial difficulty.
Mr.. Gowen's statement Is yory lengthy. and
occupies two f,lli pnKes of tho Philadelphia
ilmcs. The plan Involves the Issue nf n $50
deferred lncune bunI for eAGti share of
stock In tho Company, ench Shareholder to
hnyc tho right q subscribing vt t!.e rAte u
boi.,l for uyury s!lars OF stock held by him,
with tho privilege to willing shareholders UI
subscribing for inorn than their quota, SUBJ
tcct, to allotment, In order To absorb tlo
These deferrel-incomc hUnds ncser become
due. md there Ii no obligation IN tho part Of
~, tl!G Company ever 70 pay W. hrinespa!. Iiey
will, however,. ha entitled only, after
cent dividend, to. any surplus Of earnings up
10 i prr cent. antt thereafter they will rank
nnri rassn With the common hiiales tor fir-
tl,ur dividend This Issue Is merely to take
l'p tho tluatt,lg debt, amounting " at:J
Tho total liItIli,y, including. s5.oO0.oo of
uNissueh KeneraIMOrtEaEG bends, ngKfc-
gutcs Si40. Isl, sst, ard Is composed ot the
funded debt Of tile two coinpanles-ratlway
lrased lines is pnid and the amount of such
Et1Nratltgcs us involve MI annual cash outlay.
This liability MIR. Gowen divides Into llye
ci;!sses. with total annual Charge OF So's'tss-
4l3, rs follows:
No. l.. Consolidated mortgaFo and prior issues,
Nc. ]. Obligations after consolidated md be-
foS as', T. XII 5 suSseSsn. to general
mortgagc. $1g,i4s, ,:u,.
so. 1. ilest group Of loased lines, se8,:is,511
u No. b. Second group Of ieasod l'nes' s-".lA''
1Io proposes that . new mortgage upon all
the property Of both COMPANIES 20 Intldes
securing All Issue of per cont obligations,
which issuo should be divided Into two
classes, 4 and y, tile former having priority
Glass 4 to to for s75, ,ooo.o0o t9 retire Nos; l
10 for SIT, 0oo, 10 retire No. 8. md TO pur;;
chnsc from time to Time Nos. 4 aild +. All
securities included IN Nos. 4 and i, when
purchased. TO be hold BY the Trustees
therefor, iii viii Proper provisI"tls ior the IL
come ef all, and voting power Of sharc c!api-
tal of leased lines being received and held by
tho Company. Clnss 4 should be either per"
tinn III fifty years; tho interest On clnss 4 to
be cumulative, md bIect to be collected BY
]egnl proceedings upon, any default, Tho
whiie tic intercs. should also be cumulative
for thu protection of the market value 2t
Glass u, 1t should be provided that no suit
could ba brought t0 recover Interest untll
There cnn never DO my doubt nMt the q; Com
pany thai, llas enrned ncarly S9, 9,oMo.Mn M t1 II, q
iss0 vii always DO ablc 10 earl. the 81, III, ,ooo
Interest upon Class a; aud, as IN Ainerlca,
recover frn!a the effects Of plnle or 1usi.
hess prustration, that period Of grace, given
in case Ut my pussl6le default on Claus !,
would enable thu Company to sustain Itself
asast ~! cotlngensss' a, would fass greysnt
which might otherwise result from suspen-
Ut i i i. cstin!ated tiat et tho aew Issue sl4o-
0ooo woi!ld probably bS saicgnt 70 W
to s7,0O0, 600, would take tho place Of the
prestAlt fixed charges for, interest, sinkinE
md after tho year lssa viii amount 10 So;
857, Ill., tlere would le effected m annual
| saving In liked charges (tl il were pesslbls 10
purclRsu OF exchange a.! Its issuo) Of S3,G57,"
llo II was suEgcste9 TINT ne NJ snfh saVinS
fon' pany TO o. purehase M ay SONS Of tho hls'cr
classed securities at ally rate, much
less Il3nn tl1ht OF n per ccHt onlRntol!i Uhk
it was buIleyed tint, making, uil allowance
for advance on tho inarket vn!ucs Of thu se-
| curtttcs that had to DO purchased duo to the
fact tllat fund was pFoylt!ea tor ulelr nc-
| quisition wlthtn Il yGry sl!ort TINY, saving
which would equal 81. $4,000. In addition
to this, tllare would DO q snying. on ACCOUNT
Ut sinking funds Of as least ftuo, ,ooo, making
~ tis toi savnx nt ifSfd fS smadEes, a
u[acuRgtnu Of tho matter by thu Committee,
mid tic examination OF tho ,Yartous state
ineilts accompanying II, thu following scsolu-
| tlon was unanimously adopted:
pla@ sasaastoi by III. Il aowsa @ fgr hs sst:iea.
Ing Gf tho trS os nMsnGlsl 9ssty "
further reduction of thn tixe.l sharxes by retir-
ing tho cxIs!ins oblsaaaoas ana p11rehas!lig tAe
noW iadna ~ p per ' cons Ios' Md husias ia'y
cnnaioreI Tho salne. Eivp 1t their approval and
reeoE',msni i sor AdoptIot y ne Gosn,pai, ,s
% euiFeI ~ ~ viii vii! 10 % siKciy I to secure ior 10 now
Esuo tho highest al,d beat rrices.
Tho financial condition OF Tho Reading
air@aa C9vp9Is Sd th9 ta SiSan geni
| Of boil. Companies CONSOLIDATED! md treated
ns one, Is shown by tto following statument
OF assets aud liabilities:
! ASSETS.
| Railroads equal to Tpl miles single
Ssacer ~ .........:.. s31,4ssao
| Itcni estnto OF Nn!roast Company, ln-
cs,,tl.uR uts dupnts, Us per report Of
LuuotnntivU ruXit,cs aIll cars.......,.. aA, to
| Steam cnliiGrH, vesAes ald barGcs, sta:
t1nnnry unHtntB. 1uachlMury mud
,ncn;a. &c. .'...,,.,.s.............. 0,:a3ao
| HtOcka anil builtls tls...,,...n.........., 7,Bl8uu
panios ] @ w -. aai ses
| ChuI iuntls 1T Coat and lr)lt Company.
Including all improvements, eati-
| natad at $7H0 I,1r MurG for cpAl land
starroycn,or,ts ] Of sumo: me- .:...:.:... 7aeoQooo
| OtA0r reA ustltte nf tho Cool nlio Iron
ColnPnuy, Including timber al1d IRON .,c, ~,
| Esttmntcd present vatu0 Ut loascs held
| by tho KkilEunu Company. coyuslnE
| 41t mIIea Ut r.1tlrlAd, equal TO StA
L IL. iostI,a ,a4.