New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-05-04
\ REPORT ON READING.
THE RECEIVERS MAKE A SIAlEMHNi -
EA1rIRE OF THE PLAN TO PURCHASE lhH
COUPONS OF THE GENERAL MoRTGA'E

COIPONS THE GENERAL
NEUTRALITY-SUSPICIOUS. MUST BE OBJ
TANNED IN SOME WAY.
PHILADELPHIA. MAY "A statement was issued
last evening by the receivers Of the Philadelphia
ard Reading Railroad Company, which reads IN
part as follows:
The record of what has been accomplished during Ing
tho Gfteen months OF the receverskp. without ths
Of The Company or other assistance
than through the forbearance shown py az
craI mortgage bondhoders has been sufIc nsiy
told in the reports recently published tignt inolo
dollars of fresh money has been RAISED am amoant
would lake No the balance still retaining together
with the receivers certificates. AS explained now
provide for this amount would require the use OF
all the available colaterals owned by the company n
gage interest and the equipment notes than tnS l
earnings Inc equlpmrht, Upon M ii during TIE next
five years cost upward or SsC"vo ana the Us,
ned If il were withdrawn TO the extent that II has
been paid for 1t has become part Oh inc secndIH
fore 10 the interest Of the bondhoIders Of that
mortgage OF all other creditors, thai 1t shoaiu
1t had come to be understood that the general
mortgage bondhoders were not wiling 10 give ' ne
company the option cause their coupons 10 De
purchased for the period Of hve years ~ mad oe nd
In hs ogRe p@@ 20 With
the representatives. Of Messrs. J. S. Morsan O.
& 90, and Barring. Magoun & Co.. OF NefTc York,
OF Philadelphia, to obtain their advice and co-opera-
ton. , III.
the representatives Of these houses and after pro-
traced dlseusslon plan WAC fornulattd h hnnSs
70 be asked to give the company the privilege
e 5eyeng s Gt tme br bog from
July 1893. to January 1895. inclusive 70 De made
eres AZ the hate of per cent per annum ana re-
deemable out of the surplus net earnings OF any
interest Of such year. II the plan could have been
carried out In other respects the general mortgage
OF their overdue coupons and interest, and OF
those still to mature as they fan due: while ne
have been retired out Of the earnings Of one or two
good years Of business; II the consent OF the gen,
eral mortgage bOndhOders 10 this proposition coud
nm issno Of collateral trust bonds Of 5VOCOO to be
secured by the present collateral trust bonds. ana
other property, which it is believed would nave
per cent OF their par value thus realizing sufficient
TO take up the floating debt the receivers certfi-
This plan met with the general approval of the
confidently hoped that it would receive the support
and adhesion OF the creditors and friends OF the
Before It could be submitted to them. however.
II was learned that the representatives OF certain
holders Of the general mortgage bonds in the city
ings foreclosure should be instituted unless they
should receive immediate payment OF Their interest
ieciions to such action would lead them to abandon
[og megng vas accordHs srTo3se
!hsir VIEW: and ths following day gave notice OF
In pursuance Of this deermination the committee
o, %hGh F. 0lc2 pTestent OF IN Ce"i Ira
been organized and call for the deposit Of bonds
mas been published IN the daiy papers nn,s eais
which General Flzserald ne president OF the Mr.
In Wow Of this action It would be ile for the r.
TO realiust the affairs OF the COMPANY 50 long az
conl'fionS
able TO invent involved the right 10 fund pur-
chase the general mortgage coupons for AT Least
been under constant consideration and discussion by
ne receivers and manasement - The company
s soG6oaers q ne company th"t the results OF
or be d cfs Of b r i9St the h2S
payment according to Is terms; and ordinarily he
holders ~ the junior Hers and shares should pro-
cumbrances II they ask for Indulgence but the pres
ent Is peculiar
Railroad COMPANY cannot be ascribsd to 2 nerria,
nent inability to meet It's fixed obligations as they
any one year viii always suffice to pay the general
mo,rIge Int interest sGrrugE during that year and
company where it f. necessary to foreciose. in
order 10 reduce the rxei charges: ~ he bonds
which follow the general mortgage. are only on
remembered tina, thc failure now 10 pay the general
mortgage interest is not due 10 deficiency. but
diversion OF the net income to other objects
value OF the general mortgage bonds
For these and other reasons. ard especially in |
View Of the present unprecedented depression OF
business IL was thought justhable. well as ex
20 ent. to appeal to the general mortgage b0ndhold
% grant the relief Indicated hu;. FOR the pres
cnt. II cannot be expected that such indulgence VIII
b" given. The most serious consequences 70 the |
holders Of the Income bonds ard shares. however |
which ensue from the threatened action viii |
b. the IMPOSITION Of an assessment for the larger
part - which the company can give security Of |
equivalent value that the danger Of the loss OF |
their interest In the property through foreclos
ure sac need not now he regarded probable But |
II should be distinctly understood that II is ESSENTIAL
to the efficient and successful conduct 81 the bust
ness ~ the TWO companies that sufficient funds |
should De ultimately supplied. In some way to pro- |
iact the floating debt and opulpm snt. well to |
pay the general mortgage Interest. In the secur- |
!ng OF this amount the receivers and management |
VII unite with any body of creditors share
holders 10 the best Of their ability. and viii cheer
fully give Tho benefit Of their assistance In any |
eior. 70 make the burden OF providing for It as
l.ght possible.
j. s HARRIS.
EDWARD VI. PANSON.
JOHN LOWBER WELSH.
Receivers
J. S HARRIS President.