New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-06-04
financial.
THE PHILADELPHIA and READ
ING RAILROAD COMPANY,
NO. 227 sOUTH FOURTH ST. PHILA.
Summary of Plan of Rsadjustment.

The Company proposes 10 issue OF Thirty
year Collateral Trust pcr cent Gold Bonds Of the par
OF $50 geo COO be secured by shares and bonds
coal and coal yielding present revenue OF
- G3G and l.. s. s25i0.ljG or this s22O)o
will he issued the proceeds OF when VIII take
m all OF the floating Indebtedness amounting to SO o0)
This issue is conditioned upon the reduction OF the
and contracted since 1855 10 the actual
earnings Of properties leased and guaranteed and upon
an agreement by hoc, OF the general mortgage bonds
"a sell their coupons cash, al rar, 70
in the earnings not sufficient TO fay them
they fall due. BE- made the b,si, o! an Issue OF
coupon certificates bearing per cent, iAteres an
icdccmablc the company has funds su'nceht
for the purpoc after paying interest the lien ii
Mortgage. II j. also conditioned upon an agreement oy
the Stockholders transfer their sharc> 10 Voting liuc
for seven yar-. Subscription to the Collateral Trust
Bonds AMI Coupon Trust CO tcates have Dceh socu'a
from outside parties so that stockholders and bond
holders are merely asked to gyc their assent to sail agree
ncnt, without TIE Obligation any cha &c as ess
cnt whatever.
Nv reference to the Plan and statement It will b. sceo
that while pan does involve any Increase IN he
principal Of the indebtedness OF the Company beyond the
discount on SD O0o,C00 Of bonds now 'suel IL WI"
elect large saving in the annual cost OF carrying the
floating debt and the floating indebtedness thus "
bc taken IN either OF claims for cals ana SIP
lc and intcrr, on prior for all OF which X
cccr Certificates. prior In lien TO the General Moeasc
mlant be issued SEQUEL by the pledge OF the SHARES
and bonds or COIL aud coal accounts ana rolling stocA
worth ncie than the 10 rowei on them. 20 that
II H. Of which would have To be pro'iaeu TOT
unier any scheme reorganization
4, 70 thc sale Of ''enc'I Mortgage coulois II Is
also explain ID that Company covenants no. to divert
any OF the earnings other purpose than tn; pay
mcnt OF operating and prior interest charges
tut mains bound to pay the coupons on the Ee'fa
MORTGAGE at atury, II funds TO do and
i, further bound take up iOupon Trust Cet!Ecatos
and cacol tt.m Of nist sirlu' earning, after
the ia, mrnt OF the rest the General Mott
cage The hold tcncral Mortgage Coupons viii only
n rcauiI sell u prevent default a. the maturity
of each coupon am III, coupons VIII only be kept alive
u the earnings sufficient TO pay them During the
year, the inercs on tn General Mortgage Boas
a. wel interest upon tho noatns debt was earned in
ull and so,3i7. jAO paid upon the Income Mortgage
Bonds.
4, to the and guarantees made after 1883 they
are all subject the Income Mortgages. and tn promise
of the aiding Company eiore OF no value though
the connection with the E-adlng system is OF mutual al
vantage.
The lc o, the Voting Trust Is unusual but the sub
scruons to the Collateral Bonds and Coupon Trust
Vcrtit atcs could he secured by trust which ill.,
,urd u stable and conservative management without
contest that period.
All existing rights ard pcrItics OF all creditors are
thus preserved without change sacrifice
IN, holtcrs bonds can sign the agree
ment without r,akng any dlO,ic. that their use
collateral be In, rruptci ntrercd with, and.
coupons only to BE- cold and detached at ma
turty, tn, will continue good delivery.
Cerlcat1s stock shoul be pre- n,cd 10 be stamped
with the word "Asentcl the time signatures 70 the
taken but the certificates Will no: be trans
crrd to the Voting Trustees or General Mortgage Bonds
STAMPED uitl tie uia. O. Jared op rati,e.
The I.chgh Nai'y Railroad Company haj already
agreed the necessary reduction In IT, minimum
rNof renal In the plan should be adopted Copies
Of plan explanatory statement and OF tie agree
signed by the stockholders and boadolder'
b. obtained upon appenI at the Offices OF TIE
company.
JOSEPH 5. HARRIS,
President.