New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-06-07
Financial
THE PHILADELPHIA and READ
ing RAILROAD COMPANY,
M. a2z SOUTH FOURTH ST" PHILA.
Summary of Plan of REIMBURSEMENT.

M cr.,r n,onoses 10 create an issue OF Thirty
veor Collateral Trust per cent Cold Bonus OF 'e pa
value of 100000 to be secured by shares anu
con, and coal accounts yielding present revenue Va
a, 10, Gae and after 1S9S So $40 loo or this S22o'o
600 will now issued. the proceeds OF which wiz 'n
IN all Of the floating Indebtedness amounting 70 @-ooo
ooo This issue is conditioned upon the reduction OF inc
rentals and guarantees contracted since 1867 10 he uo'ua
-nno ~ the properes leased and guaranteed and upon
an holders OF the general mortgage bonus
On sell their coupons they mature for cssh az par ="
,,ee I'm case the earnings sufficient TO pay them
when they due. be made the OASIS OF an Issue
oron trust certificates bearing per cent interest am
,cecemable 20 the company has FUNDS suh'ce'
for the purpose after paying the interest OIL u' "e
Nortcacc IL also conditioned upon an agreement W
Tho stockholders to transfer thcl: shares 10 Voting trustees
49, a.oo vcars Subscriptions the Collateral Trust
Donds and Coupon Trust Certificates nave been sec"cu
from outside parties that The stockholders anu ou
holders are merely asked to give their assent 10 sai' ose
men,s without the obligation any charge o. assess
n ent whatever.
By reference the plan and statement IL VIII De seen
that while the plan does involve any increase IA u
PRINCIPAL Of Indebtedness OF the company ocSou '
ascount oil the 500 900 Of bods now Issued IL VIII
or, large saving in the annual cost OF carrying the
coating debt and that the floating indebtedness mus !"
be taken up consists either OF claims Tor maeas anu sup
rss and interest prior mortgages for all OF whch ""
cever prior in lien the General Mortgage
,, he issued or is secured pledge OF the shares
and bonds or coal coal accounts and rolling stock
18th mere than the amount borrowed them. so that
#, Il Of n nature which would have TO be proHded ior
under any scheme OF reorganization
70 tho OF the General Mortgage coupons, IL -
also explan,d that Company covenants no. TO divert
any OF the earnings other purpose han the pay
ment o. the operating expenses and PRIOR interest eharss
but r.mains bound pay the coupons on the General
MORTGAGE az maturity cash. If IN funds TO do 10, ana
l. u,ther bound To take up Coupon Trust Certificates
and eshce Of the first Surplus earnings alter
the payment the current interest on the General Mot
c,oc The holders General Mortgage Coupons Will only
. reaurad 10 sell tn prevent default AZ Tho maturity
Of each coupon the coupons VIII only be kept alive
MI the earning, are sufficient 10 pay them. During the
last five year, ntcfcs til General Mortgage Bonds
as we'll upon the boating debt was earned IN
full and 50 Si7.7454O paid upon the Income Mortgage
Bonds
As TO the leases and made after 1883 they
are all subject to Income Mortgages and the promise
Of the Rsadng Company Is Therefore OF no value housn
the with the aiding system OF mutual an
vantage.
The Ter eth OF Voting Trust Is unusual but the SUD-
scrtons TO the Collateral Bonds and Coupon trust
Certificates could only be secured by trust which IN
,urcd and conservative management. WITHOUT
contest period.
All existing rights prcrities OF all creditors are
preserved without change. sacrifice. or assessment
The holders bonds can sign the agree
without baking deposit; so that melr use as
collateral Will he interrupted or ntcrered VITA ana
coupons only TO be sold and detached al ma
turity the onds wiz continue good delivery
Certificates should be presented To he stamped
with the 'Ascnted' the time signatures TO the
agreement are taken but certificates will not be trans
ierrec Voting Trustees General Mortgage BONDS
stamped until tie pan has been Jared operative
The Lchirh Valley Railroad Company ha' already
agreed % rake the necessary reduction In IT. minimum
rscf renal In case plan shouli be adopted Copies
Of the plan explanatory statement ana OF the agree
men.s signed by the stockholders and bondholdeFs
can BE- obtained upon apple sLon at the Offices OF the
company.
JOSEPH =. HARRIS,