New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-05-30
EXPLANATORY STATEMENT.

TIE conditions n which the creditors and stock
holder. Z the Railroad Company requested t. give
their assent and which all b" complied with b."
Tor. ,hc n!ln can H. put op rati n. belle,
10 te cnlrely rraonab". In explanation OF th'r
necessity following statement l. respectfully sub
nt'rc
I, /. obyiou. Large floating Indebtedness OF
N. c.u,ilny must 4" funded Icruanen; form
br,,re the rccei,er,hp can b. terminated At The
sent time ana IN Nh pTc'eat ndition oi h' com
rsnv ihi OILY b. done By an issue OF b'id' bear
INC p.r ecu. lni,ss- at discount, but th' interest
upon TO- new bond. will b. much los than the previous
co., of carving the debt, The average charges
paid during is9e upon the hoatins debt In
Guiding commissions renewal. amounted 7" IVY
per cent pcr annm the Interest upon equipment notes
amounted Z, ahOu. - ~ cent per annnm ana inc
Iflnripa upon per cent tw"nty.y"'r c'isera
rust bond. OF iso2 obtlin'd under ntra''
which cave lender q option IA take th"h al S-T
rer cent q their par value lsfg" saving IN inc
annual ,iarrc, q, the company VIII therefore. 10
-.,od y thi Indebtedness he refunded popo>.c
ard lafgr amopn,, third preference bonus anu ""'
.cculi,ic. now pledged and ab" to sale VIII DE- r.
d,crcd AND rctutn'd 10 III" II a'rry OF The 'ohp'"'
II = equally .ou> that the floating ndrb"ih - !"
y, q character which must for III" most pat /" pro
,ided ,of raict ~. Fan ~ f'o e'ni/'''o".
Tho ua..cu,a inicbi 'dne-, upon open account an
now overdue. irri.r'i for materials 'nH '"pP"'' "
/, H.. ruf ha,n " interest upon III" m"rt'hs' IT.
,, .dpc lilo, IN lien tina; OF The general mortenS"
nlr.t al, 10 ia.cl ~. according To- III" Pr''arI' -
,,flishci in f.rr"f rec'.,crshpS hy IA" issue oil t'N
rr'. go nc.t- The ieIainilg "'iF d'h' cons i IL
., IN. t.v,ilc which VIII all ie-om" ~ abb" "Nhh
90. month. j. secured b, the prdg, Of shar'- and
hond or co.i and coll acconnt consists ~ equipment
notes The bonds pledged - coa' "a :" "f "
give 10 the Reading system the control oil o"'" anu
conn. -t.nc line. which essential I" H. pi""FF'
,. ,, pov under me control Fiusn"" tomlan
i, sold a. forced In foreclosure po.'e'ne' "o'II
invoke heavy Incidental lp--", The rolling Nto'" Nh'
secure, equipment not"-, l. n"'-'>'N '' INV '" ~
aoaiahlc oI~ At on Of the railroad
NJ. Turff glyv q.
q. a .rb.caucni n,ed charge upon the earnings oil the
Railroad Company. ani consequently th" 'oa' Az "''"
the general mortgage bonds Amounting '" S''''""oo ~
. issued Janu,ty isi 1898. provided Ia the plaza 81
contamination iSs ooh-ti,nt" IN" Only a'aao' I's'N
for a new loan. II the prope'ty Of ur h"'r"'' '''
Coal aud Companies b" h"l1 'g"'h"' anu "o"N
u, advantage and the floating indebtedness inn1'u IL
.,or, ,or,, rho income from these collaiera's VII
marc than ,unc, 10 Jay interest 81 'hc loan ara thn'
tie resent no,tng Indebtedness b" cnr''i "'h"" III
g.inc III. .Iter II charges : ne company To-
cucroachng upon The earnings "'""'"' " Wv ~
muitga.c bupil oldcf>.
The reduction Of the hNed chorgcS und'F Ia rs" j
or quantities created al scqucntly to tl' lh'" NOR
o,ccs of isss. cssnii1l a the tnhnihp oi '''
heating indcbcdncss. The u to>' mortgages r\
,-cssly forbid appropriation OF the earnings 10 Inc
,r,nf of .tb.qu~nt rentals guarantees. ana IN inc
prc.eft condition Of the ccmlaty its promise '" pay sue"
cb,tpr, il worthl ronn ciioh between u'' IL ''i'
.ysrem and the lines OF railroad acquired sub" qnrnN
In
inc ,on,uanv can treat each property fairly. 10
keen 10, earning, separate and III case thc' are h''
,orch 10 nav TIE stipulated rentals or guarantee" TO
sect II, Indulgence Until earnings Of the property it'tl
Win nablc It 10 lay II, Own nNed charges
The aar, cn-i,t fund the general mortgage c'rrS
T. 4, ,,,, molc hn,oriancc There -loud BE- no posi-
lnity y iriault during the next h'c yars. and a. all
btcrment- ard iml roNomgn' must le paid ont OF the
,nining, night to mnS'h Interest DUNG tai period
h. =, fundamental condition To any sale reorgan zaton
If
,,,rs the con Iuny has iaid f'J7t13i0 IN Interest
uon the Income mortcacd hthd-. IL ~ proposed h"re
aft to exercise ur priNlic-' -N'n by ur terms OF
IA. income MORTGAGES, aisi 10 charge acains' Income
ne entire cost oi maintenance and renewal. "nrlId
, .,ch t,onahc improvement, thereof AMI citations
thereto =, shall 's'ary for tho safe proper and
g, oromica oprIat"n u" t"e property ana II Ns should
ronire n. appropriation OF an amour; equal to hs
,nouu, maid ,,ron The income mort bonds aud tn,
entire int res, the gem raj mortgage bonds dur" the
p.>t uv. wears -? coo 600 and the earning,
| should be- ~ large ~ My were duf'ng uc last
nyc wear, fond they should he lrrer beth the Fast
and funt, ,,vndltu,s In the I'M Of N prop
cry ,houl be roiuct,el. thor would, cc,sary, be
u,u,,d. NJ ~ OOO cured for tn, Of the
Iary during period under IA" provisions OF this plan
the proceeds OF to"o 600 oil present issue
of bcuas whltcver i requisite 10 put and keep the
urop.rty in good condition viii b. expended, but T.
Is not ANTICIPATED that IL viii be- nee ssary or ossibl To
spcnd In oper,ton maintenance ali the net earnings
la excess # thc interest upol ihr mortgage na"cinr"s
Ior IT, the general mortgage, and II the net income shall
be- suricient the interest on oh the and income
mort cagcs will b. puii In the prescfr iunciuc OF AZ
fair. howcyr ~ Is essential that payment of even
the general mortRaec Interest should Re voluntary anu
compulsory AMI IL Is upon the condition TINT the
concessions above enumerated shall up,n n,cd
charges OF company and Tat the control Of the min
aecment shall bc 10 voting for vars
from July -t 1928 that In, subscriptions amounting I"
40 the collateral trust bond aud general
mortgage coupon trust certificates bscn secured
The most ,rtsnt concession has already agreed
to ~ the Lchish Valley Railroad Company. which has
consented upon the condition tina: the plan is put in