New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-04-28
ASSISTANCE TO BEADING.
An ISSUE OF COLLATERAL. TRUST BONDS.

INTEREST on THE GENERAL MORTGAGE ~ BIZ
FUNDED IN LONG TERN BONDS.
Philadelphia. April c7.-onicla confirmation was
this afternoon given to the announcement III ~, y
halaltation of the Philadelphia and Reading Railroad
Company by the syndicate headed 10y DrrX"l " -"
and Brown brothers & &c. The important i'a''r''
OF the scheme TO provide for III" hq''"''lo"
OF the floating debit which approNha''S f-''"'''''''
and TO furnish new capital for the in'"r' oP'''o"
OF the road by the creation Of n collateral "not IVA"
to tie amount Of sJ0.OO0,OOo. The bonds VIII pear
Interest NJ the rate Of pr cent per "hh''h anu
at The Ispc price, %. will net the company
49,. 800 900
II Is proposed that about scOOOOO0o 81 the bonus
shall b. subscribed for by the own'rS ol '' S'"'"'
preference income bonds and general mortgage Do'">'
the remaining $lOCOOOJO 10 b. taken by III" Nh''-
cate The syndicate will al.O sb-Cril" FOR any PAr'
Of the first $50 900. 900 for which til" option OF '"e
security holders Is not exercised Tile op'ioh Is 10
he allotted thus: Each holder Of 100 shares oil sto'h
TO he entitled to subscribe 10 new bonds OF par
value Of ~ 200; each holder Of any on" oil the 'fee
series OF preference bonds Of the general mortgage
bonds 10 be- entitled To subscrlb" f." Sioo III he"
bonds for every II 600 bond h" now owns
The issue Of collateral trust bonds Will have priority
over the preference income bonds, Int will br pre-
cedcd by the general mortgage A.. To get over 'hc
proball. objection OF the preference bondh"!defS 10
this arrangement II * PDpp>cu UNI wv
upon the general mortgage bonds for the next Nv"
years II being about Sl.1G0OOO per annum 'ih'i uc
funded hv The syndicate purchasing the conpon' ~
they fan due, and accepting In return therefor an
Issue of long term bonds. The Issue Of collateral
trust bonds AT o. and file funding Of the gonrral
mortgage coupons viii eventually give the Reading
about S:7 10000 capital and the securities no"
| pledged rs collateral for portion OF the Heating
debt will be retired. including the present slOoooo"o
| collateral trust bonds.
The contract which President Mcleod made with
the Finance Company OF Pennsylvania for the purpose
Of enabling him 10 finance the cOmpany's coal uaue
will be- alrogated. The agreement. which i as al
| vautaceous 10 the Finance Company rs II j. burden
some TO the Reading will BE- terminated upon 'hc
paVment 10 the former concern Of sum WHICH VIII
compensate IL for all the rights II viii surrender.
| The present Reading system. Including the Po"gh
kcepse Bridge and Lc.gh Valley roads, viii b" re-
| tanned.
| The contemplated rehabilitation 81 tho Eead'hI
! caused that stock 10 take Jump In the STOCK IN
change to-day. The shares which closed yesterday
AT IL li-lG opened this morning nj - Ia ana b"hN'
buying orders advanced IA" price I" II IL 10
A slight reaction followed. but the stock again De-
came strong and closed at II Il. The bonds w'r
also strong the first preference rising from IL :
10 - | = at the close. III" seconds from ~ - u
:,- the thirds from 20 TO 30 and the general mort
gage 4s from - Ii to 20 LrlieA Valley stock wa
also favorably affected 10y Readings prospects, an
| advanced from A. Il at the opening To I" -. :
small block OF Pennsylvania Steel Company stock Wa
ald