New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-01-16
RAILROAD INTERESTS.
FOR READING REORGANIZATION
BASIS FOR IT SUGGESTED AT \ CONFERENCE
BETWEEN TIE RECEIVERS AID THE
HONDHOLDEEs' COUNSEL


BETwEEN TIE RECEIVERS AND THE
rONDHOlDERs COUNSEL.
conference Of the Reading Railroad receivers
and John r. Dos Passos counsel for the eenef Al
mortgage boniholders. was held in Philadelphia on
Saturday. and the following was SUGGESTED as IA
possible basis for reorganization OF the company
The floating Indebtedness OF the company IN
Guiding the receivers certificates amounts III iou'
numbers T. $2.5Jg.o0l The Finance company OF
Pennsylvania has hal charge OF the coal accounts
OF the Philadelphia and Reading coal and IRON Com
pany for the last fifteen months, ana the business
has been conducted in very s-ii-iactory manner
and the advances have been Increased 50 that they
now amount to $,DOCO0 The security IN the pos
session Of the Finance Company is heheNed 10 DE
sufficient to warrant an issue Of Sot'vV Oh ten
year trust certificates, which could be SOLD 10 the
public at par. and the Finance Company has inti-
mated that if this bc done Its annual charge
for services Will be materially reduced after tho
expiration of the present contract
The 5-p,r cent collateral trust bonds owned by the
Reading Company amount TO io,lev' and eNpe-
riemcc has shown that these bonds occupy very
strong position being protected by the shares ana
bonds of the tributary and ahiia-ed Hnes OF IN,
Rea ling system. II they can be disposed OK 10 'he
q ,Hr ri 'i nee o,I bt AMI receivers crr,ii
the car trusts which mature shortly u., ...
gage bondhollcrs 10 fari th,ir coupons for iv,
years and it is proposed 70 form syndicate 10
purchase at par. fog cash the coupons as thci
mature thus giving To- the h1ndhoiers money for the
interest as IT falls Inc. resortirs 20 the bondnolei.
however. the privilege Of taking the coupon trust
certificates themselves y they oDsirc t. DO So Win
this relief To the company during the period Of
funding il Will be able e. take up all It's WatUrins
obligations, including the equipment notes ana
have ample mcan-. it IS believed! lor conducting lis
business At IN" expiration OF five years. under
the. terms OF the last ieorsanzati2n the company
VIII come into possession ~ $lNwlm or general
mortgage per cent bonds. 10 viii also be ssIry
that settlement should hc made with the holders
of the Philadelphia Reading and \ew-i.urlanI
bonds for the release of the guarantee oi The
Philadelphia ana Reading Railroad.
II plan of reorganization can be- carried
through within reasonable time. IL Is feared that
the United States Court viii insist upon action boing
taken by the bondhOdcrs or the receivers dis
charged. leaving the property open TO attack by
its creditors.
Mr.. Dos Passos said yesterday that the proposed
plan would reduce the cost o. carrying the floating
debt from = to per cent. II does not assess the
securities and does not Increase the volume or
the securities. The proposed plan seemed 10 Do"
acctptable 10 those who saw II yesterday. In the
market the stock and bonds OF the company w'r'
exceptionally strong Tho stock opened AT u.s.. an
closed at -Di..