New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-06-23
READING PLAN ABANDONED'
SUFFICIENT AsSENTS TO THE REDRGANiZA'
TION NOT OBTAINED
,cr,ox or THE BOARD OF MANAGERs-THL
STOCK MAEKET AFFECTED-JREsiDENl
HARRISs STATEMENT.
rpy TELEGRAPH TO THE TRIBUNE.

! PHILADELPHIA June 22-Thc plan for the fcluJ"''
mcnt Of the Philadelphia and ReauihS nam ~ ,,.
Coal and lyon companies was finally aD'o"oh', ~ ~
Board or Managers this morning Una r ''c W"
ditions attached the plan the assent of 'ne
Of Sal SOS 900 general mortgage bonds ana f7''i-f
shares OF stock 10 certain of It's provisions WIS !"
| oulrd while the total amount of asseh'N op'iin."
was only s3I $4,000 and 411,2'e shi-'s "i S'"."
The special meeting Of the managers. which was o'l'n
for II O'Clock this morning. lasted just one hour IN"
Immediately up)r lis adjournment The oino''i an
nonnccmcnr of the plans failnre was made'
Tho oncstion Of extending the time Of us 'cnthe 10
thc plan for two weeks discussed but not "
single voice raised In its favor. ana the r'S'"
ton TO abandon the plan was adopted ny u unanimous
vote The failure of the plan was due mainly l"
| the opposition Of the Ncv-l ork boiuh0InerN VIM
were united in the determination not to consent To
the funding Of their coupons for FIVE years 'iS pro
nosed In tbc PLAN Ncs rdav samuel Dickson, conh-
sci for the company paid visit to Ncw-> orN III t
vain hope Of winning them over fcrSu'>l"h anu
arguments alike were unavaiing and late yesterday
afternoon Mr.. Dickson wired To the Reading "hl''rS
that his mission had been friltlcss. An effort was
made I'm sornc quarters to induce th" board 10 'N''hu
the time for receiving asscnlS hut to thiN COURSE
There were two almost insupcrible Obstacles. one the
unalterablc opposition Of the Ncwlork londhoid'rS'
the other the fact that the members OF The under
writing syndicate. willie legally bound until August
l. had been given understand that they would not
number Of asscats had not been secured ~ Junc ~
John L. Welsh. who headed Tn" syndicac far the
reorganization Of the Reading Railroad ana earnestly
! laborcd for its success. said after the meeting
Every member Of the syndicate wa, pledged 10 the
support Of the plan am stood ready, mp - ihc last
minute + put up the necessary money. We are no"
clad to be released We ont entirely and VIII
have nothing more - Do with H."
The resolution, adopted ~ tn" loard. after settling
forth in brief the term, + the plan and stating lh''
90 per cent of the general morteas" hondh"d'rS ana
60 per cent Of the capital stock had not a>>rh'-A'
read follows:
Resolved. That III" subscribers t, the proposed
Issue Of collateral bonds and OF the general
mortClc. coupon trust certificates l." and they ~"
hereby released from their Subscriptions ana th'
holders 81 the and general mortgage bonds "i
the Philadelphia and Reading Raihoaa Company ara
other companies named I'm The plan who have ,lV'n
their assent thereto and affixed their signatures TO
the several agreements I'm which they wcr" respectively
Interested be- and they hereby released and d.
charged from all liability bv reason thereof
The following circular .-ucd 10y President
Harris This afternoon:
To the stockholders ana bondholr, Of the Phi i1"lh
and Reading Railroad Company The rolrI 81 NnIr.r'
rccre. 70 announce Tint plan Of rradustr"nt OF My
- 1898 ha. flci to receive the assent Of the h"d'r
q the requisite her 81 -ha - and obligations 81 th'
con paav Dy Of tn plan IL wa. po'iiei TINT
II the of the requii" numb'r dn HihS over 30
ncr cent Of The general mortgage bond aud 90 cost u
the should not ho secured rs o." 2t Of inr 'n
cthcfs the pod i@.u" OF '"Ia'"al u' b'.d'
and general coupon trls crt'h" t"- wouli IT,
released Tho sui>crI ton- wc.e mae upon TIL roni''
ton and A. IL not postl" ~ The i"-ent tim" 10 Las"
such sub.or prion- renewed o. c>rnd'h III" pan mn
now De abandoned and the sul sc'iTto1- fI"~l IL j.
10 sille TIA, tie many friends Of the 'omiahy
| In This city AMI Ncv-Yofk. who ha'" united
in asking that the holders u tc onsiAnding shares
and securltie should be- given unti after e l' u July
rh,n the general mortgage ni.fci nl aHrt'. nay d.
.H.HHa mons. n. af
would thereby be occurred bui sui -2'.n 20 The
propo.ci Of collateral tru-t Eonl ani col"' is-
GER nca,s, would ao he required. nd this 'nnno' ro'
Re made up II making hi anHopatcn'm The IA oi
Manager. deem u theif drty o mako ac@no"lI.i'"t
~ tho liberal manner In which che sYh- T 90 Che FRO
posed l.suc. -"crf ., tend" f tho A''hi'' 20
| o>tilear IN. company frl u dificv". AL aa 81
.cl,c. liabc for upward morth-. u I'm" o va
parillcl,d dcprc-oa, 20 fuHh ihr large amount
~ upward ~ +2o o. Iroo wilson ASKING of pa" 'lt' i
compensation for uci agreement t. splpH ia nfn"'
needed.
II Is known That at one time the leaders Of ih"
-yndicatc led under confederation method 81 i"r"-
closure uy which II "a, Thought that the d.i""sfa
ton Of the property could De- avoided. lat whether
or not that scheme viii now h. revived ha- not Vet
been di,clo.cd II Is generally conceded iLa, ,.',
company viii not have IN ils treasury on July 'i
hciont fund to pay In Iull IL" lf','et en- on upon
| the general mortgage bonds bat III c''" 81
default no proceedings looking toward foreclosure
could lee l~eun until ninety day from "a d"'' 'nl
| It is probable that nearly year ""nh 'I.P," a.
| l.
certain that whether The interest on the general
mortgage bond J. pad ol no.. ihcr' VIII j. mum
| Of the compluy. lag l.. Rec. vho-r r"yrla;ion,
| about the recent Reading management TcHi,i ehri
theories which may be- embodied int, rro. sanl'itipn
pIan anI two OF the" iih, NV" l%" ,on
holders. lut In any case ihr ah1nionmcut
POT the John l.. Welsh plan pr's's's o." continuation
Of rcc"iv"r>lp for IN Indefinite p'r.ud. ana render
certain the pushing 20 ~" utmost the applhaii"n
for authority I, u" receivers certificates Anoll'r
.. Ia
noon. Ia :ac The Issuance 81 these ccrtihcat"s now
seems lne'tahc II hc lrol'ri, o. Ia, '"rIany IS
ors the Pullman lalrcc Car Company md IA"
Baldwin lrcomouv" Works l";h oi winch hoih ~"
Rcadng's equipment notes, or other loaiing debt
crcdiors
All the Reading speculative ,.cmiti"- declined in
the stock market to-day. bat none ~ much - th"
.tock Of The L"hieh Valley '"mpnny. which wa~ freely
sold on the theory That the failure Of The plan for
the Rcndlnc system. Whether or not mi, theory =
corroct rmalnS To be seen. but II u is IL" L"iigh
Valley will b" placed IA tho position stated n rec' nj
official uttcrancc Of The directors ~ hcne corir nj
with the necessity Il terminating Inc lc-c nnl 'per1i
| ing Tie Lrhich NaIicy independently, which would
probably result In ssp"nto ~ dividend, dur NJ The
period con 'nm"d ~ rcrSAh,sh,nS Slch lmdcl"'n"' mt
| I-pondcd world depend largely 90 ID. conditions
following scvcr1nc" OF relations with the Feeding
The formal notice given by the Philadelphia and
| Reading managers of the Abandonment of the plan
Of rehabilitation leaves the affairs of The company In
a state Of disorder. what will BE- done by the man
| agenent may only be- conIcclur'd. tn" Interest OF
the general mortgage per cent bonds falls du" on
! July l. and the loan OF spcycr a 20. also natures.
Wall street wondered Yesterday what could be- done
| TO meet these demands. 4 default on the interest
| was instantly suggested but II Is too early yet TO
| learn what action the company's management win
| take. The confusion in which the situation IS left
| was reflected at the Stock Exchange. Rcadiug
| stock declined from II 5-s 10 ~ 80" 10 -. ma
| the general 4. fell per cent to 80 =.
| he Of he uOt ne \ Drctc cd he r
| The underwriting syndicate required preliminary
| coniation that the assent OF 30 pr cent OF the
| holdings Of general mortgage bonds shoud BE- oh
| taincd. II was felt Icy many NcwNork critics that
| II would be imposslbl" to obtain such larg, pre-"
| portion, II the plan cordially approved.
owing to the bonds being widely scattered Well
n being 10 some tied up Ia trust funds. There
dnI.Lllc In Inc AnN.l-