New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1886-12-16
READING REORGANIZATION.
THE PLAN SUBMITTED BY THE TRUSTEES.
AN EFFORT TO AVOID FoRECLosURE-sIxrf DAfS
NOTICE To SECURITY HOLDERS.
fBY TELEGRAPH TO THE TRIBUNE.


fBr TELEGRAPH THE TRIBUNE
PHILADELPHIA Dec. Is The plan for tho reoreanih"
ton OF the Reading Railroad presented to the boa
OF Managers OF ths day and favoraby actea
upon. The plan provides for reorganization WI"ou.
foreclosure of the Philadelphia and Reading Railroad
ami affiliated companies" II provides for tho s'uo y.
s1o0. .0OO 900 In seventy year new general mortesso
per cent bonds be the r-t lion upon all the oou
psny's properties. OF this issue s33.42l 200 10 TO 10
take up all the mortgages prior c tue P'
ent general mortgage 900 rcpays at par the
principal OF the present outstanding general norea0e
This leaves 300 new Is for the following pui
poses: to iake the general mortgage serne 'cr'p
u 697220 TO redeem existing real estate norRae'S
s2l 900 900; to cover advances made by Drexei 70
OF per cent Ter annum, nterast for three years Oh
certificates Issued for general mortgage boods deposited
under the pan 600 O00 to provide fo taxing ~ 'ne
sharrs and bonds Of leased lines belonging to tue hea
Ing system 81 OOo and for the exchange or redemo
ton Of divisional coal land mortgages OF the keaunk
Coal and Iron Company Slo0oo0oo. This Will absorb
sll the issue hut $0 100000. OF this. s36Oooso ID ~
served for betterments to redeem collaeras
and $780, 900 for working capital. Tbs bonds OF TINS
issue will be In tho denominations OF 100000 Slooo"
and 81 900 and be either coupon or regs'ereu Oh W"
books OF the company In Philadelphia with the prVF
lego the holders OF the registered bonds to have 'he
registered for payment Of interest IN New-fork OF
London II is esna cd that about 81 Si250OOOo OF nes'
income bonds will be isuel for the cash ssaessmehts'
should a settlement take place with the eenerA
mortgage holders the basis herein Indicated ABOUT
81 100000 will be issued for that purpose.
In dealing with junior seouritics aDdsock the pan
is stantaIly the same as tina: originally issued as
March OF cash assessments and the e1-
changes OF new for securites For all tho cash paid
for first income 5s are to be issued a par
aud II all these securities IN tho stocF accept the pa"
there will bs 81 900 cash thus raised. which money
is to he used for the repayment OF receivers cerhoatos
aud all overdue Interest on ths consolidated aad I'm
provement mortgages and also in dealing with tue
secured floating debt The cash assessments require
from each class OF securities follows: income
bonds first series 5s convertible nd ustment scrr
10 per cent the value second series 5s convert
ihls 7s debeLture bonds OF the railroad coal and IRON
company and unsecured claims when duly proven,
whether funded floating uebt Is per cent on the par
value: preferred and stock SO per share and
deferred income bonds 2l2 cent the par value
Each OF these bonds except the deferred iu-
comes will receive equal amount TO t- present par
value in the second and third Income 5s The ae-
fcrred incomes oneh lhe rar value. IL is proposed
to educe the aggregate OF r-ntas aud guarantees lex
elusive OF the Central Railroad Company of NewJrrsey'
schuylkll Navigation Company and the sdsqueAanns
Canal Company to an annual charge OF less than
$2,35OO 900 by direct negotiations with the companrs
affected by such reduction. With tho three companies
named 1t is proposed to deal upon the basis OF con
nuance their respective leases rent Il. involving
ne or surrender OF the said lrases aii tue eahoi'
ton OF the traffic OF the scnuylkl Navigation
COmDany. for considerations the said companies, 10
surrender release all Oi rent ahd ~
convey all real estate by the railroad company lor
railroad PURPOSES anl to procure tue releas- OF the guar
sntees OF the Philadelphia aud Re TIN, Railroad CON-
pany upon their several bonds or obligations
sixty dhys ara given security holders to accept the
visions the plan foreclosure iall take nl'
prUvied security holders sufficient In amount to satisy
reconstruction TRUSTEES acc-pt the PROVISIONS ~ IN"
@itnn time In the event OF foreclosure pro-
vision is made Tor converting ne income MORTGAGE
Ia Inf nDt
vidends OF cent, n0ncuinulaive, with tile priv
ilege OF conversion into tile common stock at
par The common stock OF the present company
Will be convertible into common stock oil the
new company al par An preferred and cpm-
stock OF the new company must be deposited m
sans yoting trust prnvied In the above plan of
sanitation without foreclosure The deerrei income
bonds will serble at into Ike deferre uconr
ponos OF the company par The lcased aud con-
rnlei lines and guaranteed Obligations Will pc prOvdei
for only terms aud conditions as the boafi OI
reorganization of tho comIan property viii be dis
posed aliened without the consent cf the vDtlnk
trusters. The trustees will publish call on next Mon
classes OF security holers 10 deposit
their receive certificates; the geleral
mortgage onds he deposited with DreIel & Co. ana
the other securities AMI stock with brvSn Brothers
d Co. ara this call will give sixtv day sNotice OF the
date upon which the time for making deposits VIII
expire. :,
The plan signed by the folio wing. the full Board OF
Recous rdction John b. Garrett, chairman;
Henry W. Barto, Samuel X Shplcy, Harry f. West
Samuel Dickson, John LOwher Welsh. Alfred Sully
Robert X. Dow. John Wsni inaker and Beauvier Borlc
(For Other Raaroad NeVS see second Pugc)