The Roanoke times. [volume] (Roanoke, Va.) 1890-1895, 1893-09-08

New YORK, Sept Isaac l.. Rice's
appeal to the Reading security holders was
Issued this morning. 1t contains the his
tory Of the property since his connection
with it and the causes which led to the re-
ceivership, 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: 1.-The security
holders of Reading have, in my estimation.
moral duty to perform, namely to de-
mfn1 restitution and mete out retribu-
lion. That they can retrieve the fortunes
OF their property is to me settled conyic-
ton. In spite Of the mismanagem emit to
which the property has been subjected for
over year; in spite of the waste of it's as
sets and the deterioration Of its business.
1t yet remains in wealth of resources and
capability of development property with
out parallel. Placed under the care of a
loyal, devoted and capable management,
which the security holders can secure for
it, its prosperity may still be restored, and
every one of it's obligations made valuable
again"
MIR. Rice then refers to his successful as
sisting In tho formation of syndicate in
the latter part Of 1885, for the permanent
ownership of q majority of the Reading
stock. of its dissolution while he was in
Europe aud continues: Shortly after my
return to this country Mr.. Mcleod con.
fided in me his plan for the anthracite coal
combination. The main obstacle to its OK
ecution was the apparent unwillingness of
the Jersey Central to lease itself to the
Reading. The Lehigh Valley, he felt as
SurPd WILLING IN ho a.,
leasing of the property without the stimuli
taneous leasing of the Jersey Central, was
to he rejected rs absurd He then in
trusted mo with the negotiations for leas-
Ing the jersey Central. In this wns sue
cessful, and thus the combination was
brought about"
Shortly after its consumm alton Mr.
Rice goes on TO tell of floating debt of
S3,3OO,OOO and the sale of the bonds there
for. lie also says the receivership was a
surprise to him. Flo goes on to tell of the
lease of New York and New England to
the Boston and Maine and then the lease
Of the latter to tho Reading, which was
the guarantee of minimum of per cent
dividends on the stock.
Mr.. Rice criticizes Mr.. Harris for the
ratification of the Boston and Maine spec
ulations. He also comments on the re-
ceivers' decision to pay the unearned Lee
high Valley dividend at all hazard and
thereby cause default in the interes, of
Reading general mortgage bonds Mr.
hice then goes into the abrogaton of the
Lehigh Valley lease and the appointment
OF j. Lowber Welsh. chairman of Read
lngs finance committee, and the breaking
of the ten years contract with Coke
Brothers
The decreased output in 1899 by Reading
while the general output increased largely
Is also commented upon, and Mr.. Rice
concludes: Unless change is made, and
speedily, the consequences OF the amazing
decrease In net earnings expected this year
VIII soon manifest themselves We al
ready hear OF enormous assessments on
the the junior securities, of foreclosure.
Jersey Central, the Pennsylvania, and
other companies will expect to be in posi-
ton to divide the spoils. Rumor u.s. in
deed already rife with the allotment of
the choice morsels
Action must be prompt. quick and de-
eisive to secure such d management as
the occasion demands-namely a manage
ment which will be able and determined
TO restore the business belonging to the
company that by neglect and design has
been forced into other channels, and which.
above all, will recognize the commercial
character of Readings great coal business
and put into practice the only principle
whereby that coal business can be made
prohtable-namely, to mine and sell as
much as possible consistent with a fair re-
gard for the interests Of trade as a whole.
1t must also undertake at once a thorough
examination of the company's affairs. and
upon the results of that examination it
must depend whether any REORGANIZATION
at all is necessary.
\, therefore, appeal to my fellow secur-
lty holders to unite with me for the rescue
OF our common property. The parties who
nave usurped its control for their purposes
Will yield only to numbers. request Sc
curity holders to send ME their names and
addresses, together with the amount and
classes of the securities they hold. Upon
the receipt OF an adequate response n com
mittee of representative men largely in
terested in the property will be formed.
whose names, as we'll rs the names of the
new management which they may select
will be submitted to the approval of the
security holders.
will at once be taken to install the new
management. and thus to enter upon the
task of reviving the company's business
and rehabiiitating its finances. Holders
of over SEQ, 000. 600 of securities have already
offered me their cooperation in this move
ment. AS the default on the general
mortgage bonds will mature OH Oct. /, the
promptest response is necessary"
Hit With IA Frying Pan.
Ella Kals Frances Isabelle Caroline
Spinner and Annie Hall were arrested
l. On