New-York tribune., 1886-03-23
READING REORGANIZATION.
OUTLINE OF THE OFFICIAL PROSPECTUS.
TIE OBJECTS SOUGHT by THE PLAN OF RECON-
ErhUCTtON,

THE OBJECTS SOUGHT by THE PLAN OF RECON-
srhUCTIoN,
PuILAprLPuIA, March 22.-Rcading Rail-
road reconstruction held another meeting this
afternoon. The plan OF reorganization was completed
ana parchment copy will be to tho members for
their signature. \ few changes were made IN the
phraseoogy of the plan but in the terms ana other
matters thoro alteration in the plan already made
public. Mrssrs Dickson and Wech were added TO the
Board Of Trustees representatives OF the syndicate
Messrs Dickson Wcch Dupont Cochran and West were
appointed ns Executive Committee OF the Board ana 1t
shall be their duty carry out the details Of the plan
and name date within which the deposit Of securities
shall be made and the paid. This date will
probably be June 80.
The objects sought by the plan of reorganization are
$ follows:
The reduction OF rho fixed charges within tho mini
mum earnings likely be realized in future years
Tho provision of means to pay all pressing clhns as
taxes etc. and in such way to oppress either the
reorgauizcd company or those from Whom cohtrO"'o'
The re-estabshment Of credit basis for the neccs-
say brterments Of the properties 'ud EXCURSIONS o 'no
The mlntenanco OF the independence Of the company
ana the retention under its control OF a leaseu anu Con
system or profitable in themselves. .
The continued control of AZ valuable coal anus no"
troiel.
1he relief of the company from the necessity to main
tain AZ the cost OF mortgage creditors conracs in0
ing loss and adinS t 10 or nothing TO the productive
ness OF the system. ,,.
The protection Of the present creditor class in The
future management OF the properties. ,,
The preservation as far rs practicable OF existing PR
critics and equities . -
The rc-adustmcnt Of the affairs or tho companies IL
found practicable without foreclosure.
The trustees that the fact that the general mort
gaze bondhUlcrs take the property covered by that
mortgage, pay the claims OF all prior creditors anu re-
for their capital which Is not the case
with any junior GLASS; determines beyond question that
the contrO reorganization rests in great measure with
the general mortgage For the concessions asked from
the general murt.a bondholdcrs they pensAed
by the removal OF claims the amount Of several in
lions which have obtained precedence OF lien the
principal OF their bonds; by the reductions OF rents o
leased Ines interest trusts, coal and iron deDt
ETC. and by the extension OF the lien OF the new per
cent mortgage TO cover the various easehOd and other
property acquired the execution Of the present
general mortgage 1874 H. IN the view Of juniors,
too much is accorded the generals 1t must he remem
eied that this is only determined by the values OF
the securities OF the reorganZcd company
For every assessment levied, preferred shares en-
titnng holders earnings up to per cent per auuu
are accorded There are doubtless, many stockholders
aud creditors, especially those whose h0ldgs are
parptiycy small upon whom assessment III caSn VIII
prove burdensOme. TO these partial rellet WIZ U9
found In tho sale OF such proportion OF their seNera
holdings will provide the money required 10 meet the
assessment upon the remainder. The Importance o.
vestng the present creditor class the managemeni o
properties until their productyeness Is
and the prOprietY, the Otner VI 'S
being shareholders soon as the prior
II II proposed this control by deposltng te-
porariy trustees the common stock OF the reVI-
gauized company. For tho stock cerahcates SO UV-
posted. marketable certificates shall be issued oy the
reorganization the trust shall be terminated anu to
| STOCK returned to the owners.