New-York tribune., 1893-11-18
RAILROAD INTERESTS.
HOW READIN; WILL. REORIANIZE.
LARGE AMOUNTS or NEW CAPITAL ARE NEEDED
AND ASSESSMENTS ARE BELIEVED
no rE ccnTLZ

AND ASSESSMENTS ARE BELIEVED
To lie CERTAIN.
Members of the bondholders' committees Of the
PHILADELPHIA and Reading Railroad are averse TO
discussing the prospects OF reorganization as ar
fected by the expert report submitted by stephen
Little the accountant who recently examined into
the financial condition of the company. at the
meeting on Thursday. They are unwilling 10 tax
until n summary and digest of Mr.. Little's vol
unnous figures have been prepared by A. Marcus
the member of the committee who has been IN
structed TO undertake the work. selling move
ment in Reading stock and bonds set in at the
stock Exchange yesterday. which reflected the un-
favorable character of Mr. Iittles report. Cred
itors Of the COMPANY however. were Indifferent to
the speculative fluctuations. which may have simply
represented the liquidation Of a bull pool which
has recently been putting no Reading securities.
II Is understood. however. that the investigations
of Mr. Little confirm the judgment OF Heading
bondhclders. that to place the company on sound
basis il will be necessary to raise large amount
Of new capital. Not only must the existing float
ing deb; be provided for. but the company must he
placed in position command important
amount of rev capital. The general mortgage
bondhollers rejected the proposition made by Inc
Reading management las; spring to reorganize the
nrorertv nj their own expense. IL Is cortended by
these bondhoiders that the burden OF reorGaniza-
ton mus; be mainly borne by the Junior securities
and stock whose interests would suffer disastrousy
sessment upon the income bonds and the stock IS
understood to be at the base of any reorGanl2a-
ton plan which the existing committees now con
template 1t s considered probable that this as
sessmert may be provided for BY an issue OF th'rd
preference mortgage bonds. the mortgage per
rnits an unlimited issue for value received. lhe
amount of new money needed TO place the Reading
en- It's feet is Varousy estimated, ana the maj
figures will largely depend upon the success OF
various future negotiations concerning the com,
pany's finances. Comparing the various unon'Sai
estimates made by persons familiar win Mr,
Ilttle's report 1t seems that the sum OF $o.OO0o
is not far out OF the way. 1t is Impossible. now
ever 10 hx upon any amount in the present stage
OF reorganization negotiations. and VIII be scN-
eral weeks. probably. before the bondhoders CON-
mittees will be able to formulate general INES io'
The reconstruction Of the finances of the system
The bull pool'' in Reading has recentiy % %clrcn-
lated many reports to the effect that the andef-
bits were largely interested in Reading. Cornelius
Vanderbilt made n denial to newspaper corr
srondent at Newport and there is the best of aii-
thority for saying that the capital of the NaLdef-
bilts will in no way be extended to the Reading
system in its present shape Some important houses
that conduc; business for the NanderDits nave
privately denied that they were interested in Read
Ing as friends
The friends of Isaac l.. Rice still contend that If
they can secure the management or the Reading
system there will be need OF any assessments
in its reorganization