St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1894-09-25
$1O,0oo,000 is NEEDED.
Which 1t Is Proposed That
Stock and Bondholders
Will Put Up.
RAISE 1T BY ASSESSMENT
A Scheme Which It Is Hoped
Will Put the Road Once
More on It's Feet.

PHILADELPHIA, Sept. "a. - The
Olcott-Earl committee made public its
plan for the reorganization of the
Reading Railroad company today. The
amount of receivers certificates and
the interest thereon to the 31st of
August is S3.676.S24 the amount of
floating debt and the interest thereon to
Aug. 81 is s3,9o0,645; total, s7,577, ,469.
The amount of car trusts now out
standing is $685. ,9SS. payable in six
years. The annual fixed charges are
OATS, $3.50.
In order to raise about SS,0O0,0OO to
pay Off the principal and interest of the
receivers certificates and the principal
and interest Of the secured floating
debt, and also about 50. 100000 to pay off
such equipment notes and car trusts as
may not be extended, the income bond
holders and stockholders are required
TO
Contribute S1O.OOO.OOO
in the following manner:
Each $4,000 of bonds to subscribe
for $4,000 collateral trust per cent
gold bonds at par and interest.
Each 200 shares of Philadelphia &
Reading railroad stock to subscribe for
one $1,000 collateral trust 5per cent gold
bond at par and interest.
Scrip eXchangeable in lots of $1,000
for the collateral trust bonds at parywill
be issued ratably to the holders Of less
than $4,000 of income bonds and 200
shares of stock.
Or the income bondholders and stock
holders may, if they prefer, pay, in
cash, per cent upon the par value of
their holdings; that is to Say, $50 per
BOND or Sl.50 per share, for which no
obligation will be given. The bonds
not taken by them will be purchased by
syndicate at 70 per cent of their par
value, less guaranteed commission of
21a per cent.
The committee propose to agree with
the receivers and the company to pur-
chase general mortgage coupons for i've
years, including those now in default,
upon all bonds asserting to the agree
ment of May z. 1894, in case the com.
pany Shall be unable TO meet the same
III any year from their earnings. That
contract will expressly reserve to the
committee the
Right of Foreclosure
in case of any future default. The com.
mlttee Will cause to be issued ten-year
general mortgage coupon scrip, secured
by such purchased coupons, to be retired
out OF the surplus earnings of the COM
pany at los and accrued interest. All
Uondholders asserting to the agreement
of May Z, 1894. and presenting their
bonds to be stamped under the readjust-
ment agreement will be given the light
to take such scrip at par and accrued
interest for their coupons. The condition
OF the company will be: The receivers
certificates and floating debt will have
been paid; the principal of the car trusts
Will have been reduced by s., 900 600 and
the annual payments on the balance
materially reduced. The company will
be in receipt of 1.S60 mortgage bonds,
and will have in Its treasury about
S5,000,0O0 third preferred income bonds,
and about S3,000.000 of other assets. On
the 1st of January, 1898. it will also re.
ceive $40, 0,362000 additional general
mortgage bonds under the terms of the
mortgages securing the same. In the
event of the institution of foreclosure
proceedings, the committee will recog-
nize such income DOndholders and
stockholders as may have signified their
Intention to accept the plan in any reor-
ganlzation if properly conducted by
them after the foreclosure sale, or, at
the option of the committee, it may re-
turn the money paid.