New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-06-10
RAILROAD INTERESTS.
APPEAL FROM READING RECEIVERS.


PLIGHT OF THE COMPANY IF REoEGASIzArIoN
FAILs-I L. RICE OPPOSES THE PLAN.
The following statement was given ont yestcr-
day by W. X. Taylor. secretary TO the receivers OF
the Philadelphia and Reading Railroad:
The receiver, authorize the following statement after
careful consideration Of the Of the company.
The that the first OF July their resources
viii fall about sl.500000 Zone Million h'c huhdfci
thousand dolar) short Of the amount necessary ior cur
disbursements and for tho rentals and interest which
mature that date Of other Indebtedness prior 10
the rcceiver-hp there remain due materials and sup
piles fer both companies. 100000 for coal purchased
81 o2j geo: for traffic balances due connecting iaifoaus
5000 ooo-otal. s3o250co In addition TO this amount
there several hundred thousand dollars oil hueo~d'
mostly for tranc balances incurred since the re-
ownership The amounts due to the Finance company OIL
Pennsylvania AID the Philadelphia Warehouse company
aggregate 50 100000 secured by coal and other col
liberals and other bills payable OF the company,
amounting TO 1885, 900, secured by the pledge oil
shares OF bonds OF the par value Of sl3oooooo' All
Of these coaterals must II possible be protected from
sale. Unless plan Of readJustment offered by uhe
Board OF Managers accepted by the security hode''
will not be possible meet both the interest on the
general mortgage bonds and the other oDleauoi'
maturing the first OF July. proN., ana IL VIII w
necessary order meet the most pressing oDheauohs
to make an less than - 100000 or s'oooooo
OF receivers certificates II should he found possible
TO use such an amount OF receivers certificates there
would s,l be danger OF the los OF some oil The eo'"
secure, by reason inability Of the receivers 10
take up the obligations OF the company which mature
from time to time OF the next ninety DAYS
Isaac l.. Rice. who was formerly 'he ioreiT"
representative Of the Reading Company ana WI" 'N-
amncd the accounts OF the company after the hp-
ot ment OF the the Pcnnsy lyania Company
for Insurance on Lives and Granting AnnwucS' the
trustee OF the general mortgage bonds yesterday
issued a long statement attaching the plan Of re-
organization Mr.. Rice says that the pan ih'"r''s
preference income mortgages In that II reserves as
earnings applicable to the collateral trust loah 4
charge incurred subsequently To those mortgages III
annual revenue OF S.,I25. 636 for five years. ana
OF 81 54O1jG thereafter. lie says that the ohnre'
OF $3.50 900 per annum placed coal mined together
with a principal obligation Of S1O.OOO,oOO, largely
nullfcs the lien OF general and Income mortgages
on the coal properties Of the company. opI'c'oh i
also made 10 the tlning II TlO,30J.Ooo e'h''"
mortgage bonds involving an interest charge VI
StI4J2O u year, TO BE- used part OF the ,eTury
Of thc proposed collateral trust loan. ana Mr h'f
declares that these bonds by the spirit " no,
I'M. letter Of the mortgage. intended not to be i'',h
l.fore ls9. Mr. Rice, addressing President iiarris
says: ,.,, ,o, roouos,
8" The general mortgage bondholderS yon requ'>,
10 surrender for FIVE years their rrtsicc ish,s' '
infer that period suffer Hen oi possibly f"oou'''
involving a charge Of SjioOOO per annuni: 1" W.
made superior to their mortgage. Mr. ic' hiNo
rrltlces t. provisions for the voting trust Tor seven