The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1894-09-25
uts...RAL NEWS
OF INDUSTRIES

PHILADELPHIA, Sept. "a The Ol-
.ott-Earje plan for the reorganization
If the Philadelphia to deciding rail-
road company, was made public this
afternoon. Tomorrow it will be filed
in the United States circuit court here
by the receivers of the company, and
application maze by them for author
ity to pay the commissions provided for
in the plan.
The plan which is signed by COM
mittee comprising Frederick P. Olcott,
chairman, Adrein Iselin, jr, s, Ken
nedy Tool, Henry Budge, Thomas Dem
nv George Il. Earle, jr., Sidney +.
Tyler and Samuel Il. Shipley. Is ad-
dressed to the general mortgage bond
holders and junior security and stock
holders 1t places the annual fixed
charges Of the company at $40, AT, $50,
aud says that the general mortgage in
terest would be met by the earnings
were it not for car trust payments. The
car trusts outstanding aggregate 81
533, ,9SS
Ia order to raise about IS, 900. 900 TO
pay off the principal and interest of
the receivers certificates, the prinei-
psi and interest of the secured floating
debt, and also about 100000 TO pay
of such equipment notes and Car trusts
as may NOT DO extended. tho plan states
that the income bondholdeIs and the
stockholders are required to contribute
$40, 900, GOO ltis proposed to raise the
latter sum by the holders Of each $l0,.
900 of income bonds TO subscribe for
one 81 900 collateral trust psr cent.
gold 0oud ut par and interest, each
200 shares Of stock to sub
scribe for one 81. 600 collateral
trust bond and scrip exchangesble in
lots of 81. 600 for the collateral trust
bonds at par will be issued rstably to
the holders OF less than $40. 900 of in
come bonds and 200 shares Of stock.
Holders who do not subscribe are called
TO pay au assessment Of 3 per cent upon
the par value OF their holdings. and
the bonds not taken by them will be
purchased by syndicate at 70 per
cent. of their par value. less guar
antee of p per cent. Ia case the re-
adjustment OF the companys affairs
does not become effective the contribu-
tions will be returned
OTHER FEATURES or THE SCHEME.
The plan then goes on to say that
stockholders are to deposit their hold
iugs with the agents of the committee
for ultimate transfer to the Central
Trust company Of New York as trustee,
on such terms as the committees eoun.
sel may require for the purpose OF So.
curing TO the general mortgage bond.
holders the right, until the coupons
purchased shall no paid by the com.
pany. TO direct how the stock shall be
voted for one-half of the directors and
the president of the company, and
thereafter to direct how the stock shall
be voted as respects the directors at
the direction of the general mortgage
aud income bondholdsrs and the stock.
holders
The R'ading companies and the re.
ceiyers have agreed to apply the pro-
ceeds of the sale OF collateral trust
bonds, it is further stated. 80 that the
future annual payments shall not ex.
ceed $500, 900, 'or such other sum as
may be satisfactory to the committee.
As payments sre made upon one Of the
err trusts, the company will receive
81, $50. 600 general mortgage bonds now
leld as part security. 1t is proposed
to allow the claims of the Philadelphia,
Reading and New England bondhold-
RS and the holders of "other impsr-
fectly secured or disputed claims" the
amount Of which, aggregating about
81. 100000. is not included in the state
msDt Of floating debt, to remain as
they now are II they should not ae-
cept the terms Of settlement which the
committee is willing TO offer.
COMMITTEES PROPOSITIONS.
The committee propose to agree with
the receivers and company to purchase
general mortgage coupons for five
years, including those now in default,
upon all bonds as sending to the agree
ment OF May Z last, in case the com
pany shall not be able to meet the in.
terest in any year from the earnings,
such contract giving the COMMITTEES
the right Of foreclosure in case OF
any future default In this connection
the committee will cause to be issued
ten year general mortgage coupon scrip
secured by the purchased coupons, to
he retired ont Of the surplus earnings
Of the company at 105 and interest. All
boDdboldsrs assentug to the agree.
ment of May last, and presenting their
bonds to be stamped under the read
justment agreement, will be given the
right to take the scrip at par and ac-
credit accrued interest for their cou-
pons
With the foregoing in effect it Il
then stated that the principal OF the
car trusts will have been reduced BY
$2,000,000, the company win have il
its treasury about s.. 900, 600 third pref
ereues income bonds and about SO, 900,
900 OK other assets iu addition to tht
1860 general mortgage bonds. Or
jan. !, 1893. the company will also re.
caive $40, 5000 additional genera
mortgage bonds, under the terms OF the
mortgage. During the next three year
SO much Of the earnings Of the com
psny as will be applicable to the pay
ment ofsthe generallmortgage interss
viii be freed BY the purchase of tht
coupons by the committee. The offe
cannot, it is said, be held open indefiin
itely.
MUST DECIDE IN SIXTY DAYS.
In common, bondholders are notified
within sixty days from date, to signify
their assent TO the plan to the Contra
Trust company, New York; Finance
Company Of Pennsylvania, Philadel
phia, or the London county bank, Lon
don, by signing the re-adjustmen
agreement and depositing their securi-
ties General mortgage bondholder.
who have not already signed the agree
ment are requested TO do so at eithe
Of the above named institutions and al
such bondholders are notified to pres
ent their holdings to be stamped and II
receive the cash for the coupons in de
fault together with accrued interes
thereon, or coupon script as thoy ma!
elect.
In conclusion, the committee statel
that il the proposals shall be rejecte,
at the expiration of sixty days. it will
foreclOse the property. In the even
of the institution Of foreclosure pre-
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