New-York tribune., 1886-03-17
READING REORGANIZATION.
ADOPTION or A PLAN BY THE TRUST Es.
THE MAIN PROVISIONS or TIE sCHEMT-CONrRoL
THROUGH YOUNG TRLS iEYs a

their counsel prepared for publication. The pan
provides for creating hfy-yesr general mortgage
at per cent for SlOOOO00O0. This Is to be used
follows Reserved to bonds at maturity OF prior
liens, S33.i22.0O0; to pay general mortgage,
| S2IGSGOO0; general mortgage scrip AMI coupons,
$2.0OO.OO0; real estate mortgages. S2lOOO00; adj
Tor per cent Interest general mortgage
tncaes issued for bonds deposited S 100000; to take
up shares bonds of leased lines, and for 10 her
purpose 81 100000 and TO exchange redeem Coal
and Iron Company divisional mortgages. and Tor 10
| other purpose. 81 $lO,OOO.0OO. Total $40 POS 600
! This leaves S0,792.OOO for hereafter by the re-
organized company. or tie Improvement Of
the railway NJ In addition to this to Do
placed the Reading properties for i've years after
without the consent OF majority OF the
preferred stockholders. For additional means OF re-
organization four classes Of stock to issued known
preferred stock. stock, consolidated stock and
common stock. Under the plan the general mortgage
bondholders are asked to deposit their bonds
with overdue coupons with Drexel & Co., aud
therefore certificate for the par value Of the bonds
bearing per cent interest for three years until
ganization If effected These deposited bonds
to he placed with trust cOWpddy bo selected By tho
trustees. to make tne certificates negotiable at td
stock Exchange. The certificate holder III reor
ganiztliou be entitled 70 for each 500 bond
$1,000 As and $50 preferred stock tor 6s and
$500 preferred the IS It provided. however
that TINS right TO exchange Is not TO accrue
absolutely until after January l, 1887, the right being
reserved the meantime TO pay off the general mort
gage bonds principal and interest In cash The
gwen power If the principal and interest Of any Of
the securities depohed shall be rendered prior Jan
uary l, 1887, "to transfer the receiving pay
therefor distribute the proceeds expenses
incurred hereunder to the parties entitled thereto" TO
accomplish this the junior bond and stock holders ago
to have the privilege until August l to form n
syndicate make this payment ana be given in
all the securities would otherwise gO TO the general
mortgage bondhOlders. After August and until
January the company is to baye the right to make
feasible negotiation by selling these securities upon
mOIe advantageous terms and paying OIL the general
mortgage with the proceeds. II neither Of the options
exercised then the plan goes into effect January by
giving general mortgage holers the new securities.
The income gage ana convertible adj scrip
holders will pay per cent assessment and re-
each ~ 900 bonds aud overdue coupons SlOO
preferred stock QOr tno assessmcnp and $1,000 income
with such additional u"ome stock "A als tho
matur,d coupons at the time Of reOrgaul lation.
The first series yes pay - per
each 900 bond ami overdue coupons receive
800 preferred stock tor the assessment and $1,000
consolidated stock with additional stock 10 eIIa tho
ma,ured cOupJns. The second series hyes pay 10 per
cent assessment and FOR each 900 bonds and overdue
coupons $50 preferred sO dor the ,smeuu,
$50 consolidated stock and 500 common STOCK, with
additional consolidated and common stocks IN that
proportion a. viii equal the natured coupons The con-
yerbie and debenturcs OF the Railroad @hd Coal
and Iron Company pay 10 per cent assessment aud he
preferred stock GOr the a..essmrnU ami $1,000
common stock wltA additional stock to cover tho
coupons All unsecured claims when proven. whether
funded floating get the same recognition AS the dc.
benture bonds. The present Reading preferred aud
pays rO per share assessment reccyiug
$40 preferred STOCK tor the as ssmenp ald 500 COM
mon stock per share. Inc deferred income Dohd' pay
2l2 per and for each II 900 bond re-
.,,I' e. - -, l. cr.a,"d M -.
t. he given dividends up To per cent
nOu-cumuatiye. The Income and consolidated stocks
are next to be entitled to dividends up 10 per cent
noncumulatye. II In any the net earnings are not
to dividends OF the properties on said income
bonds and first aud second iyes respectively
hereafter ascertaued shall be appropriated, Ear
may necessary toward the payment Of dividends re-
spcctVcy. the said two classes Of income ana con
solliated ock"
For protection OF creditors to the plan
j. Lowber Welsh. J. Pielpont Morgan, Henry Lewis,
George T. BIer and Robert H. Sayre rus ees, to DO
held voted for five years marketable certificates be-
s tJ IN .ct AZ dep,sIraries for All the tock and secure
tie, other than the general mortgage bonds. The
assessments to be deposited with trust
company in this CITY, to selected by construction
trustees VINO also make contract with John LOHDer
Welsh. J. PerpCnt Morgan and John e Buutt repre-
sentng syndicate who subscribe Sl50OOOOO; that
the syndicate shall be substituted IN the place Ot any
creditor stOckhO.der neglecting or refusing TO
they agreeing TO pay the assessments. for which
they shall the securities TO which the deautng
creditors or Stockholders are enutSd Drehg! . 90
snail negotiable per cent certificates to the gen
erdl mortgage holders; pending re0rganZatlon Tue IN
terest payable hl-tnhuY u 3uvc9 or hoI e1CgDa %
three years from January 1856 In case OF ttIure
deposited bonds with coupons 10 DO
returned bearer of the certificate upon It. sur
render aud the reiaym Mt OF the neres pal thereon
by Drexrl Co. The syndicate are to advance ucrs-
sary peuses and disbursements pendu. reOrganza-
tlOn, which, wt1 the general mortgage interest az
yances will refunded The syndicae are To be PAID
interest these advances at the rate OK . per
cent per auuum aud commission or per
cent upon their $lj,0OO,pOO subscribed capl-
tai. Samuel DlcksOn JOnn LOwDer Nelsl,
Henry A Dupont Thomas Cochran and Harry r.
West are made the Executive Committee TO take charge
of foreclosure proceedings and purchase ~ the
nroprrty and to suurrvse reorganization The Board OF
Trustees to be sole Judge Whe thcr
enough signatures of creditors have Decu obtained 20 tho
plan them in carryaS II ont aud snail nave
bower to abandon whenever they deem proper. Ihey
NAV al limit acceptance OF the plan or eN-
tend such time their sCretOn and are Also vested
with the usual necessary powers IN snch cases. .
The matter having been closed Dy tue trustees "
will probably take few days To get the prospectus anu
documents proper shape beOr" the pan can 10
formally presented to the Reading bond and stockhot-
ers aud notice given deposit their securities uuder IT,
LAcKAwANNA SUSPECTED OF IRREGULARITIES.