New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-05-26
RAILWAY INTERESTS.
THE REORGANIZATION OF READING.
PAYMENT OF THE OLD GENERAL MORTGAGE BONDS
PROVIDED FOR.


PROVIDED FOR
Another step in tho plan of the Phil
adclpha and Reading Railroad has been taken The
long ex pectcd announcement that sufficient amount
OF the now general mortgage bonds had been sold to
provide for the payment before July of the old general
mortgage bonds with accrued interest was made yes
terday. The official statement to the effect that,
before he started on his return from his annual vaca-
ton J. Pierpont Morgan had closed negotiations for
the purchase of the bonds with President Austin
Corbin The syndicate is the samo that undertook
the reorganization and includes j. S. Morgan Co.,
Brown, Shipley & Co., Barring Brothers & Co.. and the
Rothschlds. Tho corresponding firms in this country
are interested proportionatc 1t could not be learned
that the terms on which the bonds were taken were
greatly different from the recent popular estimates
At the office OF Drexcl Morgan Co. 1t was said that
no details about the transaction could be made PUBLIC
The negotiations had concluded, but the pricc at
which the new bonds taken private matter.
The amended plan for the reorganization OF tho
Reading Company, which was adopted in December,
1885, provided for the OF 800 900 new gen.
cral mortgage bonds, running seventy years, at per
cent interest and secured by mortgage on tho ento
property and franchises OF the company Parts OF the Is
sue were reserved for the retirement Of prior mortgages
and for the settlement purchase or exchange OF the
prncpal of the outstanding general mort bonds
the reservation was so4 6s1 900. The right to buy
the old bonds at par which expired under the original
scheme on January extended six months By the
amended plan Tho only question for the last hair
year has about the terms which the syndcate
Yesterday that the net price 10 the railroad company
was about 81 L., although tho price OF inc nss @
cent assessment on the stock may have been fixed at
point which would reduce the net price OF the nc"
bonds so far as the company Is concerhcu'
PRESIDENT CORBIN'S WORK IN LONDON
RUMoRs OF HIs SUCCESS IN PLACING BONDS WITH
STRONG SYNDICATE.
pbuadelpbIa NAV % (Special.-News was received
on Third Street from London to-day that President Cor
hin has succeeded placing portion OF the keadns as
which are to be used in redcemlng obligations OF 'he
company The story that $25OOO,OOo OF the new
4s had been taken by strong syndicate and Sll
600 Of the first preference 5s which come next W '
As had also been sold to the syndicate. Vce-PreS-
dent Mcleod said this morning that he had received
M official information Of such transaction ana pahhes
in the CITY, who were said to be members OF the sShu
cate likewise professed ignorance on the subject iho
placing of tho income IS was SURPRISE inasmuch ~
the interest is PAYABLE only when earned and hs move
is considered advantageous. enough money Will Do
raised to take up the general mortgage bonds Win
back interest without disposiDg OF 100 many vi .no
four per cents upon which the interest Is oDea,os.
for hnrII issued 10 day shows an Increase in gross
earnings of s04S92 and an increase In eApenseS "
$40 495. making increase In net earnings "a "'-'
25S
STORIES OF THE BIG "DEAL' WARMLY DENIED
Baltimore May 25 (specaD. D.-President spencer Oh
the Baltimore and Ohio Railroad, was very emphauc
I'm hs denial Of tho story about the sale OF tho schuy
kill and East Sid Railroad, by which tho Baitlmoro
and Ohio extension Inc enters Philadelphia
"You may say,s said he. that there is no founda-
ton for the story whatever and that the report mas
been started for stock jobbing purposes The re-
port however, finds considerable credence IN financial
and mercantile circles.
One OF the railroad men said: There Is no
doubt that the deal has been negotiated though per-
hans n final consummation has not yet been reached
The fact appears 10 be that the Baltimore and ONO
which assisted IT out OF its difficulties last year that
II cannot meet them except by the sale of its Phila
dephia branch"