St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1886-09-18
READING REORGANIZATION.
GOwen TO Resign the Presidency
and to be Succeeded by RIr. COrbin.

GOVVcn W htts1Sn the TTeS1ueDCys
and to be Succeeded by mr.. Corbin.
PHILADELPHIA, Sept. 17.-The pro-
tracted fight for the possession and reorgani-
cation of the Reading Railroad company
waged on the one hand by Franklin b.
Gowen, its president, and his friends, and
on the other by the reorganization syndi-
cate. at the head Of which are Messrs. j
PiefrepOnt Morgan and j. Lawton. was
terminated to-day by formal agreement
by the factions upon terms of reorganza-
ton The matter has been under private
negotiation for some time, and near APP
proach to a settlement has been evidenced
in the rapid advance in Reading stock
within the past few days. The fact of the
agreement Is made public tonight by the
giving out of the correspondence, which
consists of three letters, one from Alfred
Sulley and Edward Lauterbach to Mr..
Gowen, setting forth these proposed terms
of agreement in detail; one from Mr..
GOwen, accepting its terms, inclosing ms
resignation as president, to take effect as
soon as the terms proposed are agreed to by
the syndicate. and expressing wish that
MI Corbin will be chosen as his successor;
and one from j. Pierrepont Morgan OF
the syndicate, accepting the terms
of settlement. The correspondence was
submitted this afternoon to Messrs. Drexel,
Bullitt and WEIGH. Of the syndicate in this
city, and approved, and they will to-mor-
row submit it in legal form to the reorgan-
ization trustees. The essential features Of
the plan are:
First-Trhe present syndicate TO be enlarged
by 81 COO 600 additional subscriptions: the
compensation of the syndicate to be increased
prOportionately to
THE INCREASE OF SUBSCRIPTIONS.
Second-The reconstruction trustees to be
increased to thirteen members by the addi-
ton of Messrs Alfred Sully, r. K Dow. John
Wananaker and Charles L. Borie, and to
make such changes in the plan of reorganiza-
ton as the said trustees may think fit; pro-
yided that the following changes shall be
| made: The plan to provide for reorga niza-
ton without foreclosure, a ertgage to be
given to secure bonds to be issued in lieu of
preferred stock in the present plan. and sub
sequent mortgages to be given to secure the
bonds issued for the present junior mortgage
bonds. The bonds issued in lieu of the pre-
| ferred stock in the present plan to have the
! right to vote. if such right can be legally
( given without affecting the charter of
! the company. No foreclosure shall take
! place. provided security holders, sufficient in
amount to satisfy the reconstruction trustees,
| accept the provisions of the plan within sixty
days. If no such acceptance is secured,
then the reorganization is to take place by fore
! closure and only for the benefit OF those who
| have accepted. The voting trust to be for
FIVE years, all of the parties in interest to
unite in securing the Immediate ap pointmenu
| of Austin Corbin as an additional receiver,
with the understanding that the presidency
| of the company shall be offered him.
One of the gentlemen, who arranged the
settlement, says:
The result is that the phi ysical possession
and management of the Reading property
are placed in the care of Austin Corbin, he
being acceptable to all parties interested. 1t
is quite understood that the relations of the
| Reading company to the Pennsylvania, Balti-
| more & Ohio and New Jersey roads will be
taken hold Of by Mr.. Corbin independently,
and will be dealt with in the sole and single
interest OF the Reading properties.