New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-08-11
AFFAIRS OF THE READING COMPANY.

3hEoiDhNI BONDS PLAN FOR ADJUSTING THE IN
DEFICIENCIES APPROVED by THE DIRECTORS.
PHILADELPHIA, Aug. 10.-PreSident Bonds
plan for the adjustment OF the indebtedness of Read
ing Railroad Company submitted the Board OF
Directors to-day and approved by that body and
ordered to be submitted to the shareholders The plan
proposed is:
ffrStoIo increase the capital stock about third,
say Sl3OOO0oO OF stock to be placed in the
use at par IN l9uidatng Indebtedness of the company
sseone-It Is proposedt create general consolidated
mortgage, covering all the property OF the Railroad and
OF the Goa and Iron Companies and upon the interest
ties whether owned controlled by lease
AS the general mortgage and the income mortgage
this mortgage will be Junior to the consolidated
tain provision by When s 6Sds Iindcr thes or
mortSases shall be retired additional bonds will be issued
Soas Th San Upon al 5ne proReres OF noh com
TO be OF two classes: Class A will carry Az per cont
interest per annum and will have prior lien the
Glass BIO carry per cent interest annum The
noIgage VIII PROVIDE that holders OF the three cent
pohs sall receive from current net revenues appca
Die to dividends LIZ cent additional interest before
That after that per cent may he paid capital
STOCK OF the company Then q per cent additional 10
Do paid 10 the per cent bondhOdcrs, bringing
terest up To per cent-t being understood
but is to be paid only from revenues the
company otherwise applicable TO dividends. Both
classes of bonds to be issued but coupons able half
yearly TO be subject to registry at the option of the
company. They to be payable seventy-iive years
froIn date are to have the additional security cumu-
per annum on outstanding bonds, which amount from
ana asr January 1852 is to be paid to the trustee of
1t is proposed dispose enough of the four and
ana tne income mortgage the general mortgage scrip,
ness of both companies by and also
Tor such reduction OF the consolidated
several sinkng funds They viii also De used in ex
Change Tor II to provide for the purchase of such prior
the rem interest tra, ott6e company TO TAKE up.
stanang scrip issued Tor accreIions interest upon
.neih 10 secure reduction OF Indebtedness OF
properties and for such other debts satisfied
win mat class of security.
As the issues OF have different market
vaue II is proposed III such exchanges to equaze
shares OF the capital stock at par with three per
face value OF his debt in three per cent bonds ""
Inc oeDehture convertible, guaranteed and
~ t us.ees OF tne new inortsage as additional
changes snail have ana the mems gttIscd OF
Record TINS Will fully protect the rights AL parties
legal status as cred tors OF the corporation
MI Bond, III ais statement to the Board says that the
capital stock, the mortgage and other Indebtedness OF
the railroad and the coal aud iron corporations owned nv
the public is as follows Common stock $50 726 375 o.
preferred stock, 1851 800; total capital stock
$S4'21Sl752s Indebtedness: Fixed interest charges
or rental, $1l,265,666 OF; amount of principal
$166S61,17O 81.
BY his plan Mr.. Bond expects to reduca tho a.,
charges by reduction of interest, rentals and
OF sinking fund requirements so as to bring
them within the present revenue-producne
capacity OF the road, which he estimates to
1e about $8,41SOOS 65, about 800 900 more than
aeeded In reviewing the working condition Of the
road Mr. Bond says that the main line between Phia-
aephia ana Pottsvlle is not in good condition for Inc
business done ON it, the plant being style and mncb
worn, and sadly III need of renewal The condition. of
some OF the leased lines is better il not IN To- he
standard necessary. NV ~ ~ '0
The following dispatch has been received this morn
ing Dy MI hen one of the Reading Railroad receivers
10 Ur,,, ,,.,,.. ,,,,, , LONDON, Aug TO-
iOfo
subscriptions to deferred income bonds are ahsoeI
bona Ide Out of entire issue of S:5I 800 600
@zo4OOoO0 has paid first instament and inoney Ior
[eahlng YI9OO,oOO is ready to be paid the noInent
GAWES.