The Wilmington daily Republican. (Wilmington, Del.) 1890-1902, 1894-10-16
READINGS new plan.
Application to Approve the Reor-
ganization Scheme.
BoNDHoLDERs COUNSEL OBJECT.

The Matter Referred to Master Crawford,
Who After Hearing Takes the Matter
Under Amusement, and VIII File Re-
port in the Circuit Court.
PHILADELPHIA, Oct 16.-Before an array
Of legal and financial men Of this city and
New York the Olcott- Earle plan Of reor-
eanization for the Reading Railroad com.
pany was called to the attention of Judge
Dallas, In the United States circuit court.
The matter assumed the shape of a petition
filed by the receivers, asking permission to
acquiesce in the provisions of the plan and
to pay out the 2k per cent commissions to
the syndicates formed to put the rehabili.
tation scheme In action.
Samuel Dickson appeared for the receiv-
ers, John g. johnson and Mayer Sulzberger
for the reorganization committee, John X.
Dos Passos, of New York, and Charles B.
McMfchael of this city, for the Fitzgerald
committee of general bondholders, and
Nathan Blur, of New York, for Isaac l..
Rice and the Hartshorn committee.
Mr.. Dickson opened the proceedings by
explaining the purpose and scope of the
plan, and urging the necessity of early ac.
tion to re establish the company on SOL
vent basis.
Mr., Bijur's immediate reply began hos
tilities, He made u vigorous onslaught on
the plan and its promoters, urged that the
court had no jurisdiction, and declared
that until the syndicate had provided for
the extinguishment of the company's debt
1t could not ask the court to take the road
out of the receivers hands
Before the argument proceeded further
Judge Dallas told counsel that this being
the regular day for the opening of the jury
krta 10. =. 1. a..
George l., Crawford, the special master,
who would be directed to make speedy
report
A few moments later the hearing was re-
sumed in the masters office and continued
until late in the afternoon. Here the dis.
cussion was taken up by John B, Gleason,
of New York, on behalf Of the first income
bondholders of that city. Mr. Gleason was
anxious to return to New York, and his
objections to the plan were stated briefly.
Francis l. Gowen, following for the LIE.
high Valley road, said that the company
was not u party to the proceedings taken
by the reorganization committee, but that
1t had no wish to interfere with the pray
ers OF the petition and was willing to leave
the formulation of the plan wholly to the
committee
Mr., Blur then resumed his protest
against any action by the court, saying
that the plan would leave the company
insolyent and in the hands of receivers
with no way of being taken out of their
hands and the obligations would Increase
instead of diminish.
I Lawyer Dos Passos characterized the
/ plan as extraordinary and extrayagant,
and believed there was nota court In the
/ country that would approve 1t. The pur-
/ pose Of the application, he continued, is to
| get the courts seal of approval upon 10
and then use 1t as a bludgeon with which
/ to beat non-assepting bondholders into
submission. Without n bond In it's pos
session this committee comes into court
and asks to have this gigantic scheme OF
speculation approved SO as to force it
down the threats of the minority bond
holders. He believed that if the 1900, 900
worth of bonds were advertised for sale
they would be taken up at par, and in
stead of 9Tl5 per cent, as proposed by the
committee, there would be saving to the
holders of Reading bonds Of about $3.50, 900.
Mr.. Dickson defended the action Of the
receivers and detailed the advantages to be
gained by the approval Of the plan. Never
in the history Of the company, he said, had
there been an opportunity to borrow
money so advantagoously. In answer to
the opponents of the scheme he said that
If any one would show legitimate bust.
ness transaction whereby the Reading
could be benefited the receivers would
gladly listen to the propositions
After Mr.. Dickson had finished Mr.. Dos
Passos and Receiver ]. Lowber Welsh ad
little tilt Mr. Dos Passos thought that
the receivers should take no part in the re-
organization, and said to Mr. Welsh: "You
have been in two Reading reorganization
schemes The first failed, the second failed
and the third will fail" Mr. Welsh said
he did not approve of sticking the knife
into me, but that when his adversary was
ready to stick it he would be ready to re
ceive it.
Mr.. Dickson's argument closed the cast
for the present Master Crawford was I'm
able TO say when his report will be filed.
Judge Dallas stated that while the re
port will be filed in the circuit court, II
will be considered out of court