The evening herald. [volume] (Shenandoah, Pa.) 1891-1966, 1893-06-05
OFFICE OF THE
PHILADELPHIA & READING
RAILROAD COMPANY,
No. 227 South Fourth Street
Philadelphia, May 27, 1893.
To tire Stockholders and Creditors
Of the Philadelphia 81 Reading
Railroad Company.

The Board of Managers herewith present
the 70 lowing plan for the readjustment Of
the affairs Of the Philadelphia and Reading
Railroad Company and the Philadelphia and
Reading Coal and Iron Company, and the
fund.- of the floating aud other indebted.
ness now in default:
PLAN
Tho Philadelphia and Reading Railroad
Company Will create an Issue OF thirty-year
collateral trust gold bonds, bearing SIX per
cent. interest free OF taxes, Of the par value OF
5000 coo, to be seeu cd by the mortgage or
pie dgC TO the provldent Life and Trust Com
p7ny Z Philadelphia, trustee OF the follow ng
70, ,63i Ol5 OF shares and BOMBS including those
now pledged as security for 6i0.I on, ,OCC
collateral trust bonds Of January /
1892, which will be cancelled
3l036 900 general mortgage is to b. Issued
the reorganization plan of 1886, Jan
80 300 00l coal ana coal accounts:
s. O0 600 equipment notes
NOHE.-(The shares and bonds pledged for the
secJ rity OF the $4,000 q collateral ttust loan
Of 1872 have n par value OF Tl5,54,5OO and
were estimated as worth at the lime of The
crenJion Of that loan Sl3 62j,0l2. Other
sec rifles Of the Philadelphia. Harrisburg anC
Pitt burg Railroad Company, OF Other
roaUs, amounting in the aggregate to the pal
vah OF S5,Ol9,5l3 are to De added and become
par of the security OF the present issue.
The itcOme from these securities
during the last year amounted
s756}G OC
The time for the payment OF the
equ pment notes viii be eX-
tended by the trustee of the
present loan, in consideration OF
the payment Of six per cent.
interest per annum and com.
to.............,........................ 100000 o.
proceeds of this issue, is to be
trar sfcrred by the Phlladi lDhia
and Reading Eailroad Company
TO the Philadelphia and Reading
Goa and Iron Com 1any through
the National Company (of which
all the shares are owned by the
Coal aud Iron Ompany), under
n C utraCt which shall pledge to
the trustee as a part of the
security for the present issue OF
bonds, sha e5 of the said Ma
tional Company aud its obliga-
tion for the said amount of 6l0-
000JO0, to be secured by the coal
and coal accounts OF the Coal
ana Iron Company now amount
ing to upWarJ of TlO,OWO 900 and
shall further st pul ste that such
coal and coal accounts shall
always be kept up TO that
amount or mace good to the
satisfaction Of the trustee and
Eha' further require the Coal
and Iron Company TO pay to the
trustee six per cent. per annum
upon such advances and a com
mission OF S250OO0 per year,
equal S500OO
(rhe pre- sent contract with the
Finance Company (suhstanti
ally similar in cha acter TO that
proposed to he made with the
National Company, which that
company mas agreed TO sur
render pro vidCd for an sdvance
of $1,000 900 (Which was sub5e-
quCntly increased to 5000 O00),
AZ the rate OF per cent. and
minimum annual commission
of $50 900. Under the proposed
arrangement the interest and
commission will all 60 TO the
trustee for the payment of
interest ur the redemption of
the bonds of the railroad com
| pany, or, If not required for
! The Sc purposes will be paid over
! to the Ra 'lroad Company
| This would give present annual
venue 2,l25 G3G Q
/ The interest on the SlO,SG30'0
general mortgage bonds, avail.
/ able after 1898 will be............... Ala $40 {