The Wilmington daily Republican. (Wilmington, Del.) 1890-1902, 1893-09-06
MR. RICE'S APPEAL.
He Presents Readings Affairs to
the Security Holders.
HE WANTS A NEW MANAGEMENT.

His Views Based the Fact That the
Property Is still Sound. but That IL
Is Being Worked In tho Interest of Its
Competitors.
NEW YoRK, Sept. O. sElsaac l. Rice's
! appeal TO the Reading security holders was
fssued this morning. 1t contains the his
tory of the property since his connection
with it and ths causes which led to the
eeiyership, and which are keeping it there
now. 1t points out the way in which the
property can be saved, probably without
requiring an assessment, providing that
: the management is changed without de-
lay
Mr.. Rice says in part: 'The security
holders OF Reading have, in my estimation,
amoral duty to perform, namely to de-
msn1 restitution aud mete out retribu-
tion. That they can retrieve the fortunes
of their property is to me settled convic-
tion. In spite Of the mismanagem ent to
which the property has been subjected for
over year; in spite of the waste of it's as
sets ard the deterioration of its business.
It yet remains in wealth Of resources and
capability Of development property with
eut parallel Placed under the care of q
loyal. devoted and capable management,
which the security holders can secure for
every one of its obligations made valuable
again"
MI. Rice then refers to his successful as.
sisting In the formation of n syndicate In
the latter part Of 1880 for the permanent
ownership of a majority of the Reading
stock. Of its dissolution while he was in
Europe, and continues: shortly after my
return to this country Mr.. Mcleod con.
dded In me his plan for the anthracite coal
i. -
scution was the apparent unwillingness of
fhe Jersey Central to lease itself to the
Reading. The Lehigh Valley ME felt as
eured. was willing to be leased, but the
leasing of the property without the stimuli
saneous leasing of the Jersey Central, was
70 be rejected as absurd. He then in
Srusted me with the negotiations for leas-
Ing the Jersey Central. In this was sue
sessful, aud thus the combination was
Brought about"
Shortly after its consumm alton Mr.
Rioe goes on to tell of floating debt of
eS.500, 900 and the sale Of the bonds there
for. He also says the recevership was a
surprise to him He goes on to tell of the
lease of New York and New England to
eAc Boston and Maine and then the lease
Of the latter to the Reading, which was
she guarantee a of minimum of per cent.
dividends on the stock,
Mr.. Rice criticizes Mr., Harris for the
ratification of the Boston and Maine spec
uiations. He also comments on the re
esivers' decision to pay the unearned lie.
high Valley dividend at all hazard, and
xhereby cause default In the interest OF
BEADING general mortgage bonds. Mr..
Rics then goes into the abrogation of the
Lshigh Valley lease and the appointment
~ j. Lowber Welsh chairman of Read
ang's finance committee, aud the breaking
cf the ten years contract with Coke
Brothers.
The decreased output in 1892 by Reading
while the general output increased largely
b :lSo commented upon, and Mr. Rice
f<encludes: "Unless "A change is made, and
speedily, the consequences of the amazing
dsoreass In net earnings expected this yeal
will soon manifest themselves. We al
rssdy hear of enormous assessments OF
Z chs the junior securities, of foreclosure
sGssS CsuttGs5- eHe Pennsylvania, AND
@tAeR companies will expect to be in posi-
sson to divide the spoils. Rumor is, in
Seed, already rife with the allotment c
che choice morsels.
Action must be prompt, quick and de
aaSive to secure such management a!
the occasion demands-namely a manage
nnsnt which will be able and determined
30 restore the business belonging to thu
company that by neglect and design ha
been forced into other channels, and which
above all, will recognize the Commercial
character of Readings great coal bushes
and put Into practice the only principle
whereby that coal business can be mad
proftable--namely, to mine and sell a
much as possible consistent with a fair re
gard for the interests of trade as a whole
It must also undertake Mt once n thorough
examination of the company's affairs, ant
upon the results of that examination i
must depend whether any reorganization
@t all is necessary.
Il therefore, appeal to my fellow secur
Rty holders to unite with me for the rescu
of our common property. The parties VIII
have usurped its control for their purpose
will yield only to numbers | request sc
eurity holders to send me their names an,
addresses, together with the amount an
glasses of the securities they hold Upo
khs receipt of an adequate response n cor
mittee of representative men largely In
tsrested in the property will be formed
whose names, as well as the names of TIL
hsw management which they may selec
will be submitted to the approval of til
security holders.
when that is obtained proper ster
will at once be taken to insl all tho ne,
management, and thus to enter upon th
task Of reyiving tho company's bushes
and rehabilitating its finances. Holder
of over $40, 900. 900 OF securities have alread
offered me their cooperation in this move
ment. As the default on the generr
mortgage bonds will mature on Oct l, til
promptest response is necessary y"
The PhiiaGe phin's Remarkable Work
WAsnINGToS, Sept 5,-OtHcials of I'll
navy department are very much gratifle
over the recent performance of the cruise