New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1885-09-05

THE WORK NECESSARY TO BE DONE IN ORDER TO
SAVE THE ROAD FROM FORECLOSURE.
PHILADELPHIA, Sept. 4.-E. Dunbar Lock
wood one OF Barto Committee which has been working
for the reorganization of the Reading Railroad Company
has addressed to John b. Garrett of the roads trus
tees, ON open letter setting forth certain racts
about the roads financial condition and pointing
out the necessary to be done to save the property
from foreclosure. Among his suggestions are tho fol
lowing;
First The trustees should recognize promptly and
unequivocay that the Reading Railroad Cos spanyy y Is ~
bankrupt and has not sufficient available assets 10 meet
second Two dollars of obligations cannot be paid
persons interested in junior securities stock. and float
ing debt recognize this fact and agree 70 scale poa
the GGPpS Sna RSS i upon psapa TO ssnaSe to
conduct its future business economically the better IL
Third Tue trustees should look only at the facts as
taught and While endeayOring TO reha0ltate the road
rIes 70 tie end that the immense losses which have
already been incurred by the failure OF sueh relations
Ss TSsd .sssS,
presents se Is Il best that the COMPANY should con-
tinuo 10 business or should II be wound upf
In hs repy TO this letter Mr. Garrett calls attention to
tho difficulties 70 be IN the rehabilitation OF the
Reading properties The present annual fixed charges
he SAYS are SlG7500O0 and the net earnings OF the
current fiscal year cannot exceed Sl20ooooo He con-
tpues:
We're the Philadelphia and Reading Railroad Company
soiysnt no argument could possibly controvert the OBJ
ylous duty legal and moral 70 fulfil 70 the letter the
sSr%s Si every sSpy mposS weyo
millions of revenue viii not pay sixteen millions ot oon
insist npon their SO per cent according to contract
though their debtor we're solvent ana OF
Reading system many OF these would be destitute OF all
profitable traffic They are without rolling stock ana
40 stuaed Afford In their own interest only TO AID
risk disruption Of the Reading system Insir ParIi
cpstion effective scheme Ior relief Is aosousy
essential II IL Is not accorded Willingly one alternative
only rcmansh@t the properties covered n sne rssd rs
from legal liability 70 lessor companies
Mr. Garrett concludes by saying that in his Judgment
no REORGANIZATION will be fnai that does not insure
IN The establishment Of credit 2 the intrusting ofthe
TO an interest having an actual equity In
m, property and lust expectation OF pecunary return
from II and 3) harmony with competing lines, coupled
with due regard 10 the rights OF the public
Mr.. yANDERBILTs ALLEGED NEGOTIATIONS.
PlrrsBuRG, Sept. (SpeciaD. reading
Saratoga dispatch In which Mr. Vanderbilt is credited
with the admission that negotiations for the purchase OF
the Pittsburg aud Lake Erie by the Pennsylvania are
nending General Superintendent Quincy, OF the former
road sad "The negotiations, II such are pending, are
not being conducted here None OF the resident stock
holdsrs so far as know being consulted The ao-
sence of Dr. Hostetter and James l. Bennett. both
trustees Of the road at time when negotiations for Its
sale are said to be pending ia significant weliknown
local nanoier sad 1.-THE sale OF Vanderblts block OF
Erie stock ha, been decided upon the only question
IA the price OF tho stock 1t Is understood
that he demands 500 for IT, Vanderbilt paid Harry
oliver 20 share for 2 100 shares Of stock on that
basis he win make 5000 900 he sells at $780, without
Counting the money no has made In oher ways out OF
the road OF course It win be purchased IN the interest
NJ The pennsyyana Railroad but to avoid trouble from
any suits which might be brought IN the United states
where Leading lawyers have examined the trust
deed, and they say the deal can be made"