The sun., 1893-06-05
sFinanfinI.
THE PHILADELPHIA and READ
ING RAILROAD COMPANY,
NO. as1 SOUTH FOURTH ST. rnILA.
SUMMARY OF PLAN OF REIMBURSEMENT

Tho Company proposes to create an issue OF Thirty
year Collateral Trust per cent Gold Bonds OF tho par
value OF $50 900 600 to be by bonds
coal and coal accounts yielding present revenue OF
81 l25 H36. and after 1879 S25iOl 1866. Ot this S22,
100000 will now be issued. the proceeds OF which Will
take up all OF tho floating indebtedness amounting to
100000 This issue Is conditioned upon tho reduc
ton OF the rentals and guarantees contracted since
1888 TO the actual earnings OF the oncrcs leased
and guaranteed and upon agreement by the holders
OF tho general mortgage bonds sell their coupons
they mature for cash at par. TO trustee In tho
earnings are not sufficient to pay them when they fail
due. to be made tho ba,s Of issue Of coupon trust
certificates benring per cent interest and redeem.
able so soon the Company hns funds sufficient for
the purpose after paying tho interest on tho General
Mortgage. It is aso conditioned upon an agreement
by the stockholders to transfer their shares to Voting
Trustees for years Subscriptions to the Coat
era Trust bonds aud Coupon Trust Certificates have
been secured from outside parties that the stock
holders and bondholdes are merely asked to give thsr
assent to said agreements without the Obligation to
pay any charge or assessment whatever.
BY reference TO the plan and statement 1t will be
seen that. while tho plan does not involve any in.
crease In the principal OF the Indebtedness of tho
Company, beyond the discount on the $22 100000 OF
bonds now issued. II will effect large saving In the
annual cost OF carrying the floating debt and that
the floating Indebtedness thus TO be taken up con.
sists either OF claims for materials and supplies aud
interest on prior mortgages, for all OF which Ro.
cevers' Certificates. prior in lien to the General
Mortgage. might be issued. or Is secured by the
pledge of the shares and bonds or coal and coal
counts and rolling stock worth than the
amount borrowed them. so that II Is OF n nature
which would have TO be provided for under any scheme
Of reorganization.
As to the sale of the General Mortgage Coupons.
It is also explained that the Company covenants not
TO divert nny of the earnings to any other purpose
than the payment OF the operating expenses and
prior interest charges but remains bound to pay tho
coupons on the General Mortgage at maturity in
cash II In funds to do So and is farther bound to
take up the Coupon Trust Certificates and cancel them
out of the rst surplus earnings after the payment
Of the current interest on the General Mortgage.
Tho holders OF General Mortgage Coupons will only
be required TO sell to prevent default at the
turity of each coupon. and the coupons will only DO
kept alive till the earnings arc suicent to pay them
During the last Ave years the interest on tho General
Mortgage Bonds. well interest upon tho floating
dobt, WAS earned In ful. and ss34T 40 paid upon
the lneomc Mortgage Bonds
As TO tho leases and guarantees made after 19sa
they ara all subject to the Income Mortgages and the
promise OF the Reading Company is therefore. of no
value though the connection With the Reading system
is OF mutual adv antage.
The length OF tho Voting Trust is unusual but tho
subscriptions to the Collateral Trust Bonds Coupon
Trust Certificates could only be secured by trust
which insured u stable and conservative nagement
without contest. for thu period.
All existing rights And prortes OF all creditors are
thus preserved without change sacrifice. or ASSESS
ment. The holders OF the shares and bonds sign
the agreement without making any deposit. so that
their use collateral will not bo interrupted inter
fered WITH and as the coupons only be SOLD and
detached at maturity. tho bonds will continue good
delivery.
Certificates OF stock should be presented to be
stamped with the word 'Ass.nted" at the time sigma
lures to the agreement taken but tho certificates
Will not be transferred to tho Voting Trustees GEN
era Mortgage Bonds stamped until the plan has been
declared operative.
The Lehgh Valley Railroad Company has already
agreed to make ths necessary reduction in its mini
mum ed rental in case the plan should be adopted
Copies OF the plan and explanatory statements and of
the agreements to be signed by the stockholders and
bondholdxrs can be obtained upon application at the
Offices OF the company.
JOSEPH 8. HARRIS,
President.