New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-06-05
financial.
THE PHILADELPHIA and READ
ING RAILROAD COMPANY,
no. as7 SOUTH FOURTH ST. PHILA.
Summary of Plan of Readiustment.

The Company proposes create an issue OF lhir'y'
yeor Collateral Trust per Gold Bonds OF tue par
value 1000 be secured by shares ana oohos
coal and coal accounts yielding present revenue OF
g. lo5 $685. and after 1893 s25401jG. or this S22o'o'
200 will now he issued proceeds OF which Will take
up all the floating Indebtedness amounting 70 S.ooo'
OOO Is conditioned the edncuoh Oh cle
rentals contracted since 1855 to the ae'a
earnings Of properties leased and guaranteed ana upon
an agreement by holders OF the general mortgage Dohu
10 sell coupons thev mature for cash. AZ par u
trustee In the earnings not suhfccnt 70 pay hc
when they fall due the basis OF an issue Of
couron trust certificates bearing per cent interes am
redecmable the company has FUNDS sunce"
for the purpose after paying the Interest Oh inc "e
Mortgage. IL is also conditioned upon an aereenes W
tho stockholders to transfer their Voting Trustees
for seven years. Subscriptions TO the Coiia'ei" ~
Ponds and Coupon Trust Certificates have been secured
from outside parties. that the stocKnoaers anu '
holders merely asked to give their assent I" sail s'
ments without the obligation TO pay any eharse q"
nent whatever. -
Nv refeence 10 the pIan and statement Will De see'
that while the plan does not involve any increase III ~
principal OF the Indebtedness OF the COMPANY os ',
discount Oh the 900 OF bonds now issuei ~ VIZ
effect a large saving In the annual cost OF carry" W
o,, doh and thot the floating Indebtedness thus 20
be taken up consists either OF claims for materials anu
plies and interest prior mortgages lot all VI
ccyers Certificates. prior in lien 10 the "ehcri
might be issued secured by the pecee OF 'ne SUI
and bonds o coal and coal accounts ana roi''"e s.
worth more than the amount borrowed on the" ~ "'
Il is Of nature which would have 10 ~ pio "
under any scheme OF reorganization .
As 70 tn sale tIener1l Mortgage COUPONS " Is
also explained the Company covenants ho' W 'f
any OF the earning. any other purpose than me pa,
ncnt OF the operating and PRIOR interest
but r.mains bound pay the coupons on 'he "c"eiA
Mortgage at maturity. III cash. If III FUNDS 10 90 So du
Is further bound 70 take up the coupon lrue' ,e''"
and carcel them out first surplus earnings ai'ef
the payment Of the current interest on Tic "ehera '
gage The holders General Mortgage coupons VIII o"'
lie required sell 10 prevent csthn" a' III '"a'."
CT each coupon. ami tn viii only Dc ke" awe
MI, the earnings are sufficient 10 pay them DUNG IN"
last ave years the inteFc' Tn" General Mort9ise Do"ss
a. well interest upon the floating debt was e'riea ~
full and ss 3i7 1870 paid uron the Income Mortgage
- .
s IN rho loos,s and guarantees after 1888 they
are all subject to the Income Mortgages and the promise
Of the aiding Company IS Therefore OF 10 'aue' ou
the connection with Kadne system Is OF mutual ~"
The cr 9Th Voting Trust Is unusual p1t inc suo
.r,ions to the Collateral Bonds and CouIon Irust
Certificates could only he secured by r"'t winch IL"
sured a and conservative management "''"'us
conts for that period
All existing right. and piiortes OF al! cr"c'tors are
thus prescrvd without sacrifice or assessment
me holder, ana bonds can sign the agree
ment without making any deIo:, so that their use as
collateral Will Interrupted or int'f'ered with ana
rs the COUPON, only to be cold and dftached as ma
turitv IN, onds will continue good delivery
Certificate, OF should be presented TO be stamped
with the word Asented the time signatures TO tho
az cement are token but the certificates VIII not ne trans
fcrrd 70 the Voting Trustees General Mortgage Donds
slammed rit Tie pla, been declared operative
The I.chirh Valley Railroad company has already
azrc.d a. make the reduction in 1t. minimum
rNod rental IN the plan shoui be adopted Copes
Of plan and explanatory statement ana OF ire agree
nent. 10 he signed by stockholders and hondloaers
can h. obtained upon application at the offices OF tire
company.
JOSEPH :. HARRIS,
Pre-.