New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-09-25
POW ERS.

MENT OF VOTING
POWERS
4 long conference between the members OF the
t-Earle reorganization committee of the Phila-
dslphia anl Reading Railroad yesterday resulted in
s,al agreement upon the plan Of reconstruction 1t
will be filed with the United States Circuit Court at
philadelphia to-day by the receivers of the company.
who will apply for authority to make certain CON
,.acs necessary TO carry II out. The committee
which with the receivers will undertake the reor-
,anzaton Is composed OF Frederic p Olcott Adrian
Isslr lr. j. Kennedy Tod. Henry Bulge. Thomas
Dsnuy s;eorgs II. Earle. IT., Sidney +. Tyler and
sarue X. :,hipey The plan was made pubic yes
,erday.
The committee. in presenting the plan. submits a
s.a.ernent II :he present financial condition OF
the property including the Coal and Iron Company,
raAc oy the receivers. The amount of receivers
certificates is $3.50 40. with interest amounting to
pc42. up to August 81. The amount of the floating
der, IS s. $4,000 with interest OF S6i3 to AUGUST 81
The amount OF Outstanding car trusts Is S'o569S9
maturing from November 30 1891. to November 49,
1889 The annual fixed charges. including interest
on the general mortgage bonds and the receivers
certificates and floating debt. together with allow
ances for maintaining railroad equipment. contngen-
cies sinking fund. etc. but excluding equipment
naymenis are SO 1850 The net earnings OF the
railroad and coal and iron companies for the fiscal
year ended Nov -'nber 30. 1921. We're SO.9IS9s: IN
isc N9l94SS7. and in 1893. sll.l72.690 The Reading
company has earned the general mortgage interest
IN the last three years. but the large car trust pay
ments hav> made It impossible ~ pay this interest
during the recevershp. The ..i'hie securities
Of the compeny are mostly pl~'s.. collateral for
the floating debt. To deal w11a IA situation the
REORGANIZATION committee proposes TO raise Ss"oCp
10 pay off the principal and interest OF The receivers
certificates and the secured floating debt, ana about
100000 TO pay off such equipment notes and car
trusts as may not be extended by asking contribu-
tions from income bondholders and stockholders.
aft bOnd nd stockholders
will be required TO subscribe for collateral trust
per cent gold bonds. at par and interest TO the
amount of 10 per of their holdings. THESE COL
lateral trust bonds have been in the treasury OF he
company for several years. The income bondhoM-
srs and the stockholders. in case they do not wish
10 subscribe for the bonds. to- have the al
tentative of paying in cash to the amount OF per
cent upon the par value of their holdings for which
no obligation viii be given The bonds not taken
BY the income bondholders and the stockholders VIII
be purchased BY a syndicate at 40 per cent less d
guarantee commission of Pr per cent. In case the
readjustment does not become effective the per
cent cash contributions will be returned
The Reading Company and the receivers nave
agreed to apply the proceeds of the sale or the COL
lateral trust bonds far as Is necessary, 10 'ie
payment Of the receivers certlcates ana OF 'he 81
cured floating debt. and the balance TO payment on
account of the trust. in such manner as 10
secure an extension of the time Of the payment on
account of the remainder so that the future
payments in any one year shall not exceed Nv,: 's
the company VIII receive for its general purposes
sisce'occ general mortgage bonds now held as part
security for such car trusts Iii.
The plan leaves the question Of dealing win Mlth
land bonds and the holders of imperfectly secured
disputed claims. amounting 10 aDout W r.9VG'cs sr,-G
except that any terms MADE are not 10 p.eJunIr ~
the rights of other bondholders. as guaranteed Dy
the mortgages ~ . .. ,,,ra.
with the receivers and the company TO purchase
general mortgage coupons for FIVE years, including
, mi
The agreement Of May l. 1894. The contract viii ex-
ressy 70 the he The lsH co@mee
win issue ten-year general mortgage coupon scrip;
secarea ps rnpi naIn;ngs of the company at I0
ard accrued interest. All bondholders asserting 70
the agreement OF May = 1894, will receive the right
,SeT 10 iaNe COUPONS npon This is simple
ranizaton contract, confeyrne powers usua. IN the
Srcumstances upon the Olcott-Earle committee.
ana provides for foreclosure in case the reorganiza-
The Stockholders are required to deposit their
certificates of stock with the cpmmi'ee Ior "'t of
New-York trustees in order to secure 70 me the
sonons n Fg9 sba uh b cane sne
ce'.ed 10 direct how the stock shal he VoteI ior
eomnany. After the cancellation is completed the
s;ock shall be voted as respects one-third Of the
Sondholders: as respects one-third the direction
Of the income bondhoders. and as respects one
seciIon selp 9i Of s't the e"to Stockholders.
The condition OF the company under the reorgani-
The receivers certificates and the floating debt
vii have been reduced by 100000, and the annual
payments on the balance materially reducel. ne ne
COMPANY Will be In receipt OF 1860 general norsas
bonds, and viii have in its treasury abou, SON@V
third preferred income bonds, ana ABOUT -
GasD Of other assets. On the 1st OF jan
uary. 1893. it will also receive slO36S,@ ad-
ditional general mortgage bonds. under the terms
OF the mortgage securing the same. During the
next three wears also. 50 much OF the earnings OF
the company as wi. be applicable to the payment
Of interest upon the genera, mortgage bonds VIII
be freed by the purchase Of the coupons on those
bonds hv the committee. and be app1cabc - otheI
purposes IN case Of absolute necessity. The annual
payment OF the company wi" be materially rctuctI
BY the reduction of car trusts and the payments OF
the floating debt: and. unless the earnings are ess
than as, year they wi. suffice to pay the interest
upon the general mortgage bonds, together win the
reduced car trust payments. and leave surplus;
II. the other hand, they reach the average OF
the last three or five years. such surplus VIII .'
large; and II Is 70 be remembered that during tne
the income bondhoders over s85po.00"