New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-03-15

REDUCTION OF THE DIVIDEND TO Ia
PER CENT
THE BOARD OF DIRECTORS STATEMENT OF THE
REASONS FOR MAINTAINING THE con.
TRACT WITH READING.

THE BOARD OF DIRECTORS STATEMENT OF THE
REASONS FOR MAISTAISIHG THE con.
TRACT WITH READING.
Philadelphia, March 14.-The Board OF Directors of
the Lchgh Valley Railroad after special meeting
today, issued the following statement 10 the stock
holders
AN agreement. supplementary TO the lease dated
February IL, 1892. from the Lehigh Valley Railroad
Company to the Philadelphia and Reading Railroad
Company has been executed by the two companies
and approved by the receivers OF the Philadelphia and
Reading Railroad Company. which supplement en-
bodies the following provisions: THE Lehigh Valley
Company consents that the terms OF the lease aior-
sad SO far relates TO the rental to be paid there
under, shall be modified follows. and the Reading
Company agrees to such modification. 10 Wit Upon
March 81 1893 and upon the lat days Of every June,
September, December, and March thereafter, during
A period of two years from the 3lst day OF March,
1888 the Reading Company Will pay TO the Lhigh
Valley Company the sum OF SJOi,lej, the same bchS
equal to ] IA per cent OF the eXislng outstanding
capital stock Of the Lchgh Valley Company, subject
to the proviso and condition. however, contained In
said r,ctcd indcDturc OF lease, that II ut any uine
thereafter, the capital stock Of the Lehigh Valley
Company shall be increased under any provisions
therefor tho sums herein agreed 10 be paid shall be
increased by q equal TO the amount OF dividend
upon like amount Of the present existing capital
stock of the Lchigh Valley Company at the rate
named.
alt is further agreed that n, at the end OF said
period OF two years. the net earnings oil the Lrhgh
Valley Company shall be found TO have exceeded 10
per cent then the Reading Company shall pay TO the
Lehigh Valley CompaDy all such surplus net earnings
ND to ii per cent and II said earnings during said
time shall be- found TO have exceeded Ia per cent
the Reading Company shall pay to The Lehish Naicy
Company per cent Of such excess. under the pro
visions Of Paragraph OF Article oil sad lease anu
subject TO the further provision that such % per cent
in said period shall not exceed sum equal to per
cent on the then outstanding capital s'ocA o. 'he
I.ehi:h Valley Company
Ii will be observed that 10y this provision the
entire net earnings OF the property OF THIS company
are secured TO # during the two years named ana
That thereafter the original covenants oil tho ieas"
viii be in force II Is decidedly the opinion OF the
management Of this company that the property Is
capable of larger earnings III union With tho Phia-
dclphia and Reading Railroad, as the two ROADS are
now operated. than would be possible II the lines Vi
This company were operated Independently and
that the temporary arrangement above SET
forth is for the best interests OF the Lehign
Valley Railroad Company. The receivers OF u'
Ph,ladelplaa and Reading Railroad Company oih no'
feel warranted In paying "a dividend AZ the fa'e VI
: per cent per annun. as provided by 'he easc'
unIcss such amount shall he earned from uRe oc'
vlscd proper,y some temporary concession "ns
necessary otherwise were confronted WIN inc
,.c.ssv of terminating the lease and operating the
LeMrh Valley Railroad Independently. when "ou.'
have probably resulted In suspension oil u'V'aehu'
during the period consumed In rc-es'aoiSH'hs suc'
independent operation. How long dNiu'n"S "''h"
,avc to b., suspended would depend largely Oh INV
conditions following a severance OF our feiAuohS
with IN. Reading. The experience OF tho last year
during which the lines OF the two companies nave
been Oprrnt-d Jointly indicates very pos'"''' I'M
chair union (. 10 the advantage OF both by IL ""
are occurred In a direct entrance into Philadelphia
and III. advantage that accrucs 10 thc hcAue iIoa
fhc use OF our iuhalo and New ! ork 'rriinhiS -
repaid 10 us IN rae Increased u"ino UNIV" W" ~
lines from Reading territory. , IT,. 800, o,
a. The careful consideration OF the lac'S hn" Con
d,,,ons above rcclcd has brought Your Board OF
Directors to the conclusion that ne lease ol Sona
nrcportv should le maintained ana ais" iia' nv
inoduca,Ion adopted Will secure q you W. iuh earn
ncs Of the property. and more than u an iiu.prm
Ami opcration were rcsored 10. In ines" 'on'iu
sIons We believe n Hike consideration on your P'''
will lead You 10 concur 49,. poor, .,
Thr statement Is signed. bv order 81 the bo@ru VI
directors by John Il. Fanshawc. secretary