St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1886-03-17
The Reading Trustees Prepare and Give to
the Public Their Plan Of Recon-
struotion.
A FOur-Per-Cent. Mortgage for 100000
600 to Run Fifty Years-Trustees Of
the New Company.
The TranscontinentalC Cut Met by the
Union Pacific and Denver ~
Rio Grande.
immensely OF the Gould System
Northern Pacific EarninGs--Other
Railway News.
To nenrrnnize Reading.

PHILADELPHIA, March l6.-The Read
Ing trustees to-day finally agreed upon their
reconstruction plan. 1t provides for Great
Ing new fifty-year general mortgage at 4
per cent. for S1OO, 600, 900. This is to be
used as follows:
Reserved to- cover bonds at ma
turitY of prior liens. ............S 33, 422, 600
To pay general mortgage. 24,OS6,OOO
General mortgage scrip and cou-
pons. OBSERVATION-DISCLOSURES. E,OOu,UOJ
Real estate mortgage. 2,lOO,OOO
Advances for per cent. interest
on general mortgage certificates
issued for bonds deposited. ...... 100000
To take mp shares or bonds of
leased lines, and for no other
purpose. ....................... $1,000, 600
To exchanged or redeem iIs Coal and
Iron company divisional mort
cages, and for no other purpose. 100000
Total. $50, 2OS, 900
This leaves 50, 793, 600 for use hereafter
by the reOrganiZed company as a reserve
for the improvement of the railway. No
mortgage i'm addition to this is to be placed
on the Heading properties for five years
after the reorganization. without the con-
sent of majority of the preferred stock
holders. For additional means of TeOTgani-
cation four classes of stock are to be issued,
known as preferred stock, income stock,
consolidated stock and common stock.
Under the plan the general bOndholders
are asked to deposit their bonds with over
due coupons with DreXel q Co., and re-
ceiye therefor certificate for
THE PAR VALUE
of the bonds, bearing 4 per cent. interest
for three years or until reorganization if
sooner effected. These deposited bonds are
To be placed with trust company TO be
selected by the trustees, so as 10 make the
certificates negotiable at the stock eX-
change. The plan then proceeds TO detail
the methods provided and times and terms
for the settlement OF all claims against the
corporation. The right is reserved TO pay
of the general mortgage and the junior
bond. and stockholders have the privilege
up to Aug. l to form a syndicate for the
purpose, taking in return all the securities
which would otherwise accrue TO general
mortgage bOndholders. From Aug. ! to Jan.
l, next. the company may raise the money
To pay the mortgage. If neither of these
options is exercised. then the general mort
gage bOndholders will be given the securi-
ties, the various classes of security holders
paying assessments and receiving low Sc
curitieS on a basis arranged in accordance
with the relative values Of the securities
held. For the protection of the creditors
asserting to the plan, the common stock of
the new company shall be vested in j..
Lother Welsh, j. PierTepOnt Morgan.
Henry Lewis, George 4. BaeT and Robert
y. Sayer as trustees, TO be held and voted
upon for five years. marketable certificates
being issued for this stock. Brown Bros.
x Co. have consented TO act rs depositO-
ries for the stock and securities other than
the general mortgage bonds. The securi-
ties and assessments are To be deposited
with