The sun. [volume] (New York [N.Y.]) 1833-1916, 1893-06-02
TnHmuI
TIE PHILADELPHIA And READ,
ING RAILROAD COMPANY,
NO. s.1 SOUTH roUsru ST.. rHILA.
SUMMARY OF PLAN OF REIMBURSEMENT.

The Company proro,o, TO create an issue Of Thirty
year cosersi Trust per cent Gold Bonds OF the PSF
vtus OF $50 600 secured By shares and BONDS
coal and coal accounts yielding present revenue OF
s2ia6eas and after $685. s3.bto.156. OF this sa,..
100000 will be issued the proceeds OF which viii
take up all of The floating Indebtedness amounting TO
600 600 THIS issue 10 conditioned upon the reduc
tton of the rentals and guarantees contracted snee
1888 to the actual earnings Of the rsperiies leased
and guaranteed and upen agreement BY the holders
OF the general mortgage bonds to sell their coupons n
they mature for cash. at par to trustee In case the
earnings sufficient to pay them when they fs
due be made the basis OF issue OF coupon trust
csrtincates bearing per cent. interest and redeem
able SO soon the Company has funds su1icient for
the purpose after paying the interest on the General
Mortgage. II 10 also conditioned upon an agreement
By the to transfer their shares to Voting
Trustees for years Subscriptions to the cost.
ersi Trust Bonds and Coupon Trust Certificates have
been secured from outside parties 20 that the stock.
holders and merely asked to give their
assent to said agreements without the obligation TO
pay any charge or assessment whatever.
BY reference to the plan and statement. 10 VIII be
seen that while tho plan does not involve any In.
crease In the principal of the indebtedness Of the
COMPANY. beyond the discount on the s22.oooooo OF
bonds issued. it will effect large saving In the
annual cost Of carrying the floating debt. and that
tho floating edness thus to be taken up con.
sists either Of claims for materials and supplies and
interest on prior mortgages. for all Of which Re.
ceivefs Certificates. prior in len to the General
Mortgage. might be issued. or IL secured By the
pledge OF tho shares and bonds coal and coal &C.
counts and rolling stock, worth more than the
amount borrowed on them. so that It is OF nature
which would have to be provided for under any scheme
Of Reorganization.
As to the sale Of the General Mortgage coupons
II Is also explained that tho Company covenants not
to divert any of the earnings any other purpose
than the payment OF tho operating expenses and
prior interest charges but remains bound to pay the
coupons the General Mortgage at maturity. In
cash, II IN funds to do and 10 further bound to
mp the Coupon Trust Certificates and cancel them
out OF tho nrst surplus earnings after the payment
of the current interest on the General Mortgage.
Tho holders OF General Mortgage Coupons will only
be required to sell to prevent default at the ma
turty OF each coupon. and the coupons will only be
kept alive till tho earnings are sufcient to pay them
During tile last i've years the interest on tho General
Mortgage Bonds as we'll as terest upon the floating
dobt. earned In full. and Ss34TT+54o paid upon
the Income Mortgage Bonds.
As to the leases and guarantees made after 1883.
they arc all subject to the Mortgages and the
promise OF tho Reading Company 10. therefore. of no
value though the connection with tho Reading system
10 OF mutual advantage.
The length OF the Voting Trust 10 unusual but tho
subscriptions the Collateral Trust Bonds and Coupon
Trust Certificates could only be secured BY trust
which insured stable and conservative management
without contest. for that period.
AL existing rights aud prorties Of all creditors
thus preserved without change sacrifice. assoss-
mcnt. The holders of the shares and bonds sign
tho agreement without making any deposit. so that
their coatern! viii not be interrupted inter
fered with and as the coupons only to be sold and
detached at maturity. the bonds will continue good
delivery.
Certificates OF stock should DO presented to be
stamped with the word Assented" at the time sigma
turns to the taken. but tho certificates
will OF be Transferred to the Voting Trustees
sral Mortgage Bonds stamped until the plan has been
declared operative
Tho 4LehiRh Valley Railroad Company has already
agreed to m axe she necessary reduction in its MINI
mum AZ ed rental in the plan should be adopted
Copies Of the plan and explanatory statements and
he asrssm ents to DO signed by tho stockhoders and
oondholder, can be- obtained up9n application At the
ofaces or the company. -
JOSEPH 9. HARRIS,
Presldent.