New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-04-27
PLANS TO HELP READING.
-rrop1s TO AVERT FORECLOSURE SALE.
ma r.,sr THE NECESSARY fhES"

cApTAI-CONFEEENCE IN Iii9 -, ros-
item. conference was held III '"N IVY 80,
~. .r,na,,- ,b. affairs Of the i"' cha,
ra,ng Railroad which deVeoi"u ,r. nj rom.
,o, n, r.orcaniza,iOn had ie1',.u g., a., official an.
I,,,o, ,ha, vcn,d probably reSon' ~ NOD "a av.r,
,s,,nccnent in a short uh'c, - ,...sm.nts on the
49,, ,,ocd ~ d foreclosure sale an" ,, 49, 90 ron,
'hr i''ou va ,,or bond ISSUES. ~ Wen aS u '''
~'och III" ''O .h Issue Of receivers ceT''"V"'o''
der unnecessary the iSs ,.aov ro.cnh : harris
w.. ".,.oo On IN, city Yesterday wy" "
..t,.,, g the Reading ana o''e "a 49,, -, ,ho
T. ,,or Welsh and sa;i'si D'oN'o" WV
,.no,o,.. and A. J. DrrNei' '"e NV a., un-,s .,l
"Fec'o''' ~ ,o,.e Of Drexel d Co. Ny. iariiN ana
pn"' n.'al had lcnc talk with FreS'"''" = ~
NJ DFcA'i .h,r officer, Of The Central Railroad oI
NaNNc" - :, j.. understood that tbs 'aiN r'ih''"
harmonious polio In the management. %
,ra coal trade ard in Tie Uaiho ''''"'
=, poodiur and Jersey Central
u. o,rferencc that related to Reading o'S""
.,., v,s held at The Mercantile Trust 'ohP'h,
''' .h committees Of the general mortgage boh"'
49,. and the income bOndholdcrS ana Hea@'''
o'. rd Dickson Mr. Welsh was only recently
- ., ,he Peading board. and when ne ehtr'H
:, .nro was an understanding that he was 10 'ca'
T., arrangements for the recrcanzaton VIII '"' o''"
49,, ~ rrexel d CO. MIR. Welsh yesterday "hi''u''
49,. ,on now under consideration anc was W.
o,seed AT length. The idea s TO issue S'u''oo'o''
49,, bonds 10 protect the floating debt ana provide
for
,o, ore not vet decided upon. but the rate VI III
,.rs, 10 fixed at 6 per cent It l. proposed 'o ""e
,ho new bonds subordinate 10 the genera" 'lo'N"-e'
IN, "a give them priority over the preerIru '''o"
1h collateral securities now back OF the floating cent
co., and other assets will probably be pieaS'u Ill
security of the new issue
II Is contemplated that the new bonds sh"'' w
,ssuod AT abont %. and the first privilege u SUD
scripion be offered the present security hoo'rS'
syndicate is in process OF formation TO guarantee Va"
success Of the new loan. II is understood 10 hlVi'N
prexel g. Co. of Philadelphia, and DreAe' '''' r' "
Co. spever & Go. and other New YORK hous'S' -
rancements were made short ilme ago p WIN"
SEQ 900 900 virtually pledged to TIE COMPANY
and on Tuesday additional engagements OF sl'coo'-
900 were made This leaves only about S3oooooo
20 be raised BY tie underwriting syndicate.
!! This plan is carried ont The Eeadns company
will obtain about SOS 100000 cash. Ihs Will '""'
care Of the floating deb;. amounting In rc'a he"rS
TO 81 OOO.O and leave nearly Sll'ooo"o 10 pro
vide for needed equipment and Improvements and 70
supply working capital for The company IL i san
that the Income rnndhoders' Committee Is oi'posea
10 look favorably upon hi, scheme Of financing. even
iho.ch il establishes lien ahead OF the Income bollS'
No action was taken Yesterday and the two committee
OF the bondhoders will meet again next week. Inc
advantages urged for the Welsh plan Is mat II VIII
remove the necessity Of an issue OF receivers cerlh
Gates. II fresh money Is not raised an Issue 81 re-
ceivers certificates Is inevitable and these would '&e
precedence O. oil existing obligations, Etluding IA"
general mortgage bonds. Moreover, an assessment
upon the income bonds wonh also be required Inc
alternative is therefore Offered - the income brd
holders To submit voluntarily To The plcng OF 60
600 900 new bonds ahead q their lien and thereby
avoid direct contributions Of cash 10 preserve heli
rights or 20 see an oblicauoa placed b. the receivers
ahead Of their security and in addition 10 be com
PEELED 10 pay substantial assessment Opposition
10 he reorganizatis will probably be developed, bH'
the Reading management Is confident that II carry
through the proposed plan Is The most practicable
solution of the diffculties of the COMPANY.
Philadelphia. April 26.-A plan for the rehabili,a
ton OF the Philadelphia and Reading Railroad Com
pauy. 1t credibly announced this afternoon, has
been decided upon by The syndicate headed by DrrNe
& Co. and IrOwn Botless AZ Co.. which
IS 10 undertake the task Of restoring the enbarrased
corporation 10 solvency. The scheme will probably
be made public some time next week upon the ad-
iusment OF Q few minor details.
When the Reading went into the hands OF recciv-
ers in February, il the intention Of the DroXes
and their allies 10 defer any attempt At reorganization
for al least year. because OF the belief that the
road could be economically operated under The re-
Ownership and that time would be gained for the
adjustment, II possible, Of the floating debt. The
floating debt, however proved a stumbling block and
an application for issue 81 receivers certificates
TO the amount OF sj.5OOOO0 made. Opposition
from Newiork bondholders caused the application
be withheld for the purpose Of amendment, but
none has been filed. 1t 1, understood that the
syndicate becoming convinced that the funds would
not be procured BY means az certificates. decided 10
proceed with the task OF formulating a plan for
organization 10 which end The resignation OF PIesi-
dent Mcleod was demanded ny 4. j. DrcNel in per
son. and III" work Of replacing the managers OF IN"
company with representatives. OF ihe syndicate began.
Reorganization by foreclosure 81 tn general mort
.a.e recently considered but abandoned. in
the final plan provision L. said In be made for turn
Ing into the treasury from $50 900 900 $50 900 OOl
in cash. whic1 sum will be raised either bv assess
me.t upon the stock preference income bonds
or bv the creation OF II new loan, both. The p!an
will further provide for radical reduction work
inG expenses OF the company
r. retirement OF tn $4,000 900 collateral trust
bonds which now Ayp0thecatcd security for
loans and specnlations In tn shares Of the New
York ana New GLAND and Boston ana Maine
p1nies is also said 10 be in cOntenp alton, and a
ducon In the rentals paid 10 certain leased lines
tie operation Of which has proved Improbable. is
ceneralv expected
II Is probable that the status Of the preference In
come bonds. Of which there are three series viii be
altered 50 that tolders will share In the profits only
Vhen the Board of Managers think 1t wise to maze
tie division, the securities are exC1snce1 lor a
issue.
President-eect Joseph : Harris will succeed Presi
dent Mcleod on Monday and on WEDNESDAY, rerl!
lar meeting ~ tie Board Of Managers Will be held az
which tie matter will most probably be c'nsiderci
II the plan meets with TIE approval OF the secnllV
boilers. is confidently expected. the attempt 20
raise by issuing receivers ceruhcats VIII DE-
finally abandoned.