New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-06-14
RAILROAD INTERESTS.
RITTER FACTS FOR READING HOLDERS.

PRESIDENT HARRIS EXPLAINS THE PERIL IN
REJECTING THE REORGANIZATION PLAN.
A statement to the stockholders and bondholders
Of the Philadelphia ard Reading issued yesterday
nv Joseph s. Harris the president. with the purpose
of mpresslng upon them the Importance Ct accepting
the reorganization plan now offered Mr.. HATTIE
stated that the due and unpaid obligations OF The
company on March - were s15412.sos. lie adds:
Loans made shortly before the receivershp have
locked ND the securities which otherwise might have
been use, to raise money In tho present emergency
50 that the corporation finds itself deprived Of avail
able resources and Of credit time when II Is dih'
cult for borrowers much more favoIably situated 10
obtain money. Many OF the existing loans are over
due and when the forbcarance OF their holders snnn
be exhausted they sell the securities which are
pledged with them. These securities arc largely
tochs q, tho companies whose properties constitute
the Reading system Of railroads. The holding o.
them IS OF vital Importance to the integrity OF that
system
President Harris then adverts to the plan Of re-
hablitation and saws: ~ have been TOT NUMBER ol
wears somewhat familiar with the ahsrs OF the Read
ing Company. and such study as have been anie
70 1--WE them recently confirms me In the belief that
u reasonable prosperity in the country at large shall
continue the earnings Of this company should ordi'
nariy sufficient 10 pay its obligatory charges ana
that careful. conservative policy when SNAIL
develop the present estate and positively refuse to
make new ventures shall be pursued, the company
position should gradually grow stronger. Beyond this
nothing can now safely be ssid but encouragement
NAV be found in the experience OF two corporations
whose property and whose business are very mnch
the same as the Reading Company's, being o"'h
owners OF coal lands and railroads. which In the past
have been In situations similar 10 the present POSI-
ton OF this company. and which have both by the
methods above recommended, placed themselves IN a
strong and safe pecuniary position
Mr. Harris here instances the cases OF the Lehlgh
Coal and Navigation Company and the Central Ran
road OF NewJersey, where bankruptcy was recovered
from by policy similar 90 that which Is cohtein-
plated in the Reading reorganization PLAN lie De
MES that the relief asked for Is too great and defends
the voting trust necessary condition to success
lie saws that economies have been introduced that
have thus far resulted in saving OF over 100000
year and that the reduction in the Lehiel Valley
venture will save 100000 year. In con-
cllsion President Harris declares 80
my Judgment is that the security holders VIII
make a very serious mistake " they do not accept
the relief offered them for see no probability mat
the necessary assistance hereafter be obtained
| except upon much more onerous terms, ana as
wish 10 prevent any security holders saying 10 me
| itv when II you had stated the case clearly, we
might have known how 10 act must strongly advise
| that the plan shall be promptly accepted, and ina
the assents necessary 10 make II operate snail be
| given"