New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1886-02-07
able mention 10 Messrs G. B. Roddy, 80, OF Pennsyl-
yania and f. s. spaulding. '87, Of Colorado
THE PROPOSED READING "DEAL."
DETAILS OF THE sYNDICATEs PLANS.
WHAT THE BANKERS AND RAILROAD INTERESTS
HOPE To CARRY OUT.

WHAT THE BANKERS AND RAILROAD INTERESTS
HOPE TO CARRY OUT.
THE TRIBUNE announced last week In its news
columns the movement for the reorganization OF the
Philadelphia and Reading Railroad IN the interest OF
Harmonious relations with the trunk lines and its
financial column has given the substantial outline OF
the project. The New-Yrk bankers and railroad
officers in the success OF the scheme are reu
cent on the subject The syndicate that proposes 10
attempt to carry the movement out has not YET oeen
comnleted but there is little doubt that it will include
not only the Drexel firms of this city and Philadelphia
but firms or bankers connected with the coal interests
f nrominent New-York railroads while its operations
will be backed by the pool system in 30 lar
"a that system can lend its influence to further
harmony among the transportation lines Tie success
of the scheme depends upon the response which may
be made by general mortgage bondholders to PROPOSE
ton that will guarantee their ownership rights ana a'
the same time to them the sum oil the interest Oh
their holdings during the time required to determine
whether or not syndcates plans be carried out
That interest as is ell-known is in default Addi-
tona details CT the project furnished In the ioioW-
ing article from " The Philadelphia Record" y;
The syndicate of bankers that to assist the fore,
closure of the Reading property under the general
mortgage bones has nearly completed is pldhs, aho
will issue circular probably to-day, but not later
than next week announcing that all necessary arrange
ments have been mace for the foreclosure. In this
circular it will be stated that for the protection oil tne
property aud the safety of the securities involved,
mas been deemed necessary to effect foreclosure IN an
amicabe way Ii will recommend the plan oil reorgan-
zatOn after foreclosure that has been formulated by
the Reorganization Trustees Inc eeur wi" iaa o
compeent persons, to assist in the foreclosure the
sum of 600 000 if this amount shall be required
coenlant of the action OF the syndicate since 1t began
the purchase of Reading generals Win tns 09lec. % IN
a. Co Drexe Morgan Co. John LOwber Welsh and Cas-.
satt Townsend Besides these there are nunucro VI
other leading capitalists ana bankers ~ sne %
who did not ueem it necessary to nave u eL NAMES pD
lshed All of the persons interested IN the 10 hs m
most positively that they ale net octnS In e ~
teIests the Pennsylv Railroad Company Dut soe
The country Prominent officers OF the Pennsylvania Rail:
road Company declare that t1at corporation "us
cipate because n would be In violation OF the state
Constitution acquire parallel line Those orinS
assurances from the Pennsylvania Railroad Company.
in the form OF resolution by ITS Board OF
upon basis Of pei maDent improvement TO tat coIpor-
alton. and placed under management known 10 pe
line OF the latter up the Schuylkill Valley would be
operated in the friendly way toward the Reading
Reading which would be- OF decided benefit to 1t.
Tue plan OF foreclosure as stated Dy gentea noama
mortgage, subject 20 all the Ioptsages @ @ od PrT, 10 H.
posed aiteI foreclosure by this to put moi tgage
upon the property amounting TO SsO.OVo@Ooo, @ mn,Uh
To the present general mortgage bondhoders these new
bonds will be given for their present noGlngs anT Uo
shares OF new stock will be given as 69nus thsre @
will be distinction made between the holders OF the
aud per cent general mortgage bonus M ~ he % az
and stock and the owners OF the otne
will be treated in the way Indicated by me Ol reorgSh
General moTteage bondhoders will surrender of the
overdue coupons In consideration or tue ponus anu
receive per cent for the coupons railing Que January L.
The syndicate further guarantees TO pay all coupons al
ing due while foreclosure prOceedngs are pehulg "a.
Ieor put into practical operation The pan
further proposes to place the preferred STOCK witha
done in the reorganization Of the Denver and ko 6rnle
Railroad Company subject to the call 35 tne ownet r
may be more ss. SaS, .6S the
upon the stock would probably not bs responded to by
moe than about one-ha OF the present holders and
that the place OF the delinquent holders Will be supplied
by the syndicate which will pay tae assessment and
acq the stock This stock end that which VIII 1y
by the general owned by the syndl-
cafe and ts friends will be held in trust and used for
election purposes thus preventlns the eseon m me- o. any
dcats. ,-..,,..
PnILADELrHIA. Feb. tSpeeiaD.-J. Plerpont Morgan
appeared before tho reorganization trustees OF the
Reading road to-day. He was accompanied by John
Lowber Welsh. prominent capitalist OF this city. and
John G. Butt The conference lasted about one hour
Mr. Morgan stated that the syndicate was prepared 10
20 the iton As soon as foreclosure had
been effected that 1t must be expressly understood
that tho reorganization Of the property should
be placed under Board OF Control consisting of five
persons, three Of whom should be chosen by the
syndicate This Board OF Control TO be In full
charge OF the property nVe
dent Board of Managers Mr. MOrSansalso stated
that the syndicate would the OF 100000 for Its
services In securing the capital with which 10 perfect
the organization. .
card was issued this afternoon by President Gowen,
cautoniDR stockholders against parting WIN
their shares on account Of damaging reports OF as
sessments and foreclosure, After the card had
from NewYork stating that rumOrs were current that
Mr. Gowen had sold to the enemy aud was secretly
member of the syndicate which has recently been buy
ing up Reading general mortgage bonds with view 10
foreclosure. Mr.. GOwen said: .
"If am member OF the syndicate, / don't know II,
and think should be most likely 10 have some knowl-
edge OF such membership Ii IS tue first time. thnk
have ever been accused of being such company.
That d. iudeed be the lamb and the lion lying down
together"