The Columbian. [volume] (Bloomsburg, Pa.) 1866-1910, 1882-09-08
Readings Big Mortgage.

The Philadelphia hec0r0 OF the ISL
inst, says that the largest mortgage
ever recorded in this state, and perhaps
in the United States, has been entered
in the office of the recorder of deeds in
that city The exceptional document
is the blanket mortgage of the Phila-
dephia and Reading railroad company
devised by President Gowen for the
relief of the company, and is for $780,
100000. The loan is in the form of a
5 per cent. consol, and is joint mort
gage by the railroad and coal and iron
companies, and is executed to the Penn
sylvania company for insurance on
lives and granting annuities. 1t covers
26O pages of legal cap, and is most
formidable looking instrument
An officer of the railroad company
says that but ten copies of the docu,
ment had been printed, and they were
forwarded fron London, but that others
would probably arrive by the next in,
coming steamer. There was iuforma-
ton that Mr.. Gowen had favorable
offer for $4O,OO0,00O of the loan, and
that he had several large individual
subscriptions. The mortgage was not
recorded until near,y 3 o'clock in the
afternoon. The contents are familiar
to the general public, as pretty elab-
crate prospectus of the loan was pub
lished prior to the election of the Bond
management of the road. 1t was dis
cussed at length in the courts, and an
injunction was issued by the United
States court against the loan, as it con-
tanned certain legal informalities. The
petitioners, among them the Messrs.
McCalmont, stated that the loans were
not desired by the majority of the bond
and stockholders, and for this reason
mainly the Court granted the injunc
ton.
At the election for president of the
company, in January last, Mr.. Gowen's
triumphant victory was completed by a
majority vote Of the stockholders sus-
tanning his financial schemes, among
which was the present loan. Follow
ing this came the withdrawal of all OPP
position and the removal of the iniunc-
tion by the court. Mr.. Gowen at once
proceeded to negotiate his deferred
bond loan for S34, 100000, the requir-
ed instalments upon which up to date
it is declared by officers of the com,
pany have been paid His absence in
Europe now is upon the blanket mort.
gage, or five per cent. consol mortgage,
which was the one recorded yesterday
This mortgage covers all the property
of the company covered by the income
mortgage, which includes all the rail
roads aud household estates of the
company at the time the mortgage was
executed, and does not include the leas-
es of the Bound Brook and North
Pennsylvania railroads, which have
been included, however, in the secur-
ties of the present mortgage All the
real estate of the company is also in
| cluded.
All the property of the coal and iron
company is i.lso included. which, how
ever, is subject to two prior mortgages,
one for S25,000,000 and another for
S10,000,000. The total of mortgages
on the railroad is $40, 100000, and the
$35,000,0)0 on the coal and iron com
pany makes the total upon the two
companies Sl05,000,000, and it was
supposed that this covered everything
the companies owned or ever expected
to own. BY making the blanket loan
for such large amount as Sl60,000,-
600. Mr. Gowen proposes to retire
the S60,000,000 general mortgage
bonds, Sl60,000,000 income bonds,
S12,000,00 coal and iron company's
divisional mortgages, and about $780,
100000 general mortgage bonds, $40,
100000 income bonds, ,$l2, 100000 Goa
and iron companys divisional mortga
ges, and about S60,000,000 of the
bonds and stocks of leased lines. The
balance will be appropriated toward
the new railroad extensions, necessary
improvements and the redemption Of
collateral pledged or the floating debt
and unprovided for by the deferred
bonds. The cost of recording the mort
gage il this city will be $3.50 and the
total cost recording it in all the coun
ties through which the lines of the com
pany run will be about $25,000.