The evening herald. [volume] (Shenandoah, Pa.) 1891-1966, 1893-09-06
NH. RlCE.S ARPEAL.
He Presents Readings Affairs to
the Security Holders.
HE WANTS A NEW MANAGEMENT,

His Views Based on the Fact That the
Property Is stin Sound, but That It
Is Being Worked in the Interest of It's
Competitors.
NEW York, Sept s-Isaac T. Rice's
appeal to the Reading security holders was
Issued this morning It contains the his
/ tory of the property since his connection
with il aiSl the causes which led to the re-
ceivership, and which are keeping IL there
now. II 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. "The security
holders Of Reading have, in my estimation,
a moral duty to perform, namely to de-
m n restitution and mete out retribu-
tion. That they can retrieve the fortunes
of their property is to me a settled convic.
tion. In spite Of the mismanagem ent to
which the property has been subjected for
over year; in spite of the waste Of its as
sets and the deterioration of its business,
II yet remains in wealth Of resources and
capability of development aproperty 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 its obligations made valuable
sgain."
Mr.. Rice then refers to his successful as
sisting IN the formation of syndicate in
the latter part of 1899, for the permanent
ownership Of a majority of the Reading
stock, of its dissolution while he was in
Europe and continues: "ShOrtlv after nv
return to this country Mr. Mcleod con
fided in me his plan for the anthracite coal
combination. The main obstacle to its ex-
ecutiOn was the apparent unwillinRness of
the Jersey Central to lease itself to the
Reading. The Lehigh Valley, he felt as
sured, was willing to Be leased, but the
leasing Of the property without the stimuli
taneous leasing of the Jersey Central, was
to be rejected as absurd. He then in
trusted me with the negotiations for leas-
ing the Jersey Central. In this l was sue
eesstul, and thus the combination was
brought about"
Shortly after its consumm alton Mr..
Rice goes on to tell of floating a debt OF
S8,SOO,OOO and the sale Of the bonds there
for He also says the recevership was a
surprise to him. He goes on to tell OF the
lease of New York and New England to
N''''7'NA ''lu AAtlllu anu Alltn lllt lease
OF the latter to the Reading, which was
the guarantee a of minimum of 8 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-
ceiyers' decision to pay the unearned Le-
high Valley dividend at all hazard, and
thereby cause default in the interest of
Reading general mortgage bonds. Mr.
Hlce then goes into the abrogation Of the
Lehigh Valley lease and the appointment
or j. Lowber Welsh chairman Of Read
lng's 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 a change is made, and
speedily, the consequences OF the amazing
decrease in net earnings expected this year
will soon manifest themselves. We al
ready hear of enormous assessments on
the the junior securities of a foreclosure.
Jersey Central, the PENNSYLVANIA, and
other companies will expect to be in posi-.
tion to divide the spoils Rumor is, in
deed, already rife with the allotment of
the choice morsels.
Action must be prompt quick and de-
Oisive to secure such a management as
the occasion demands-namely 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
Ngh haFs hxv thaf Il
proftable-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 thorough
examination of the company's affairs, and
upon the results Of that examination il
must depend whether any reorganization
at all is necessary.
u, therefore appeal to my fellow secur-
ity holders to unite with me for the rescue
OF our common property. The parties who
have usurped its control for their purposes
VIII yield only to numbers. l request Sc
curlty 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 a com
mlttee OF representative men largely in
terested in the property will be formed,
whose names, as well as the names of the
new management which they may select,
will be submitted to the approval of the
security holders.
when that is obtained proper steps
will at once be taken to install the new
management, and thus to enter upon the
task Of reviying the cOmpany's business
and rehabilitating its finances Holders
Of over $50, 900, 600 Of securities have already
offered me their cooperation in this move
meut. As the default on the general
mortgage bonds will mature on'Oct 1, the
promptest response is necessary"
The Philade phia'S Remarkable Work.