The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1894-09-06
GENERAL NEWS
OF INDUSTRIES

A special to the Philadelphia Record
frem New York says the formal plan
Tor the reorganization of the Reading
Railroad company will be presented to
the receivers Of the company. While
the details of this plan have been care
fully guarded 1t is considered abso-
lutely certain that no assessment of the
stock and junior securities is contemp-
lated. The stock and preference bond
holders will be asked. however, to sub
scribe to an issue Of per cent. collat-
eral trust bonds at fair price. $40 =
600. 900 Of which, backed by $15, 900, 900
securities, are now in the company's
treasury. The refunding of the gen.
eral mortgage coupons for the period
OF five years and the creation Of vot-
ing trust during the period of refund
ing is another provision, though the
voting trust features is susceptible to
a change in favor of q representation
on the board of managers of
the general mortgage and preference
income bondholders. The $4,000, 00O
or more Of equipment notes coming
due are also to be taken care OF and
new car trust will likely be created. As
TO the funds necessary to carry out the
provisions of the proposed plan it is
we'll known that Philadelphia has al
ready under written SO, 100. 900 Of the
amount requisite to refund the general
mortgage coupons and could readily
have raised the balance. The receivers
Of the Reading company, having given
assurance of their hearty cooperation
in the matter Of reorganization and
the principal features Of the proposed
plan having been thoroughly can
vassed, the prospects of the submission
Of re organization plan to the secur-
ity holders at very early day are ex-
ceedingly fattering.
Application has been made by Fran
,is j. Gowen receiver Of the South Jsr.
icy Railroad company, to Judge,Dallas.
n the United States circuit court, for
an order to provide fer the payment OF
wages Of employees. 1t was related that
the men was not paid during June. July
and August and that there is coming to
them about $780, 900 for which they
hold time checks. The complainant cred
itors and some Of the bondholders of
the road were represented by counsel,
but before the discussion had pro-
ceeded far the judge held that the mat
ter was not at this time in such shape
that an order could be made.
The Newport Goal company, which
operates several collieries near Wilkes.
Barre, has been in financial distress for
some time. Operations were continued.
however, until Tuesday. when the COL
liery at Lee passed into the hands of
the Lehigh iSid Wilkes-Barre Coal
company. Tue Newport company
operated under lease and the Lehigh
and Wilkes-Barre company held q
mortgage on the property. which will
be advertised for sals at once. 1t COM
prises about 500 acres Of first class an
thracite coal. which is said will yield
no less than II, 900. 900 tons if operated
to its full capacity. As several parties
have been negotiating for the lease.
hold interest of the Newport company,
1t is expected that sufficient money will
be realized from the sale to satisfy all
outstanding Indebtedness. Meantime
the Lehigh and Wilkes-Barre company
guarantee the payment Of the employees
for the work done during July and
August.
A important conference on the af-
fairs of the Philadelphia and Reading
railroad was held in New York Tues
day afternoon. 1t was attended by
George Earle, jr., F. L. Tyler, of Phil.
adelphia, and by Fred P. Oleott, of
New York. and other members OF
what is known as the Olcott commit
tee of the general mortgage bondhold-
ers' committee. 1t was agreed to
consolidate the Philadelphia commit
tee. of which Mr.. Earle is chair.
man, with the Olcott committee and a
subcommittee was appointed to draft
plan for the Reorganization of the
Reading company. Some time will be
occupied with this work. 1t is re-
gsrded as likely that there will be an
assessment on the Reading stock and
income bonds for which new security
will be given. The coupons on the
general mortgage bonds will also be
funded for limited period.
At recent meeting Of the executive
and financial committee of the Lake
Shore and Michigan Southern Railway
company, Monday, D. w. Caldwell,
president and manager Of the Nickel
Plate road was appointed general man
ager In the place Of the late John New.
ell, who was president and general
manager. There was no president ap-
pointed, but D, w. Forester was elected
as vice president.
The figures which Poor's Manual
gives us relating to the freight traffic
Apf our railroads in 1893 plainly disclose
he fact that Developments are still in
he direction of lower average rates.
'and consequently that the struggle for
existence WAKES fercer and fereer.
The record presented, as we pointed
out when dealing with the passenger
business, does not cover a uniform
period, but takes in all returns made
up to the close Of the various fiscal
yearsIof theseveral companies reporting.
The period of depression is. therefore.
only partly represented, those state.
ments made which come down only to
June 30. or even to an earlier date, as
they do in few instances, of which
Rock Island and the Chicago and
Northwestern may be cited as the most
important examples, rejecting period
when traffics were good rather than
otherwise. The result is that we have
an unusual increase in tonnage and
ton mileage, but for the reason stated,
the falling OF In rates, no such CORE.
spending increase in earnings.
In order to make profits under such
conditions. managers have before them
task which 1t seems Is destined to
present new phases and difficulties
without end. There has not been q
year when the average was as low as
in 1893 and infsrentially not a year
when earnings were In more demand