New-York tribune., 1895-12-17
READING PLANS ANNOCNCED u.
THE L.ONG-EXPECTEr REORGANIzAIioN
SCHEME MADE PUBLIC.

OUTCOME OF THE DELIBERATIONS or THE OH
corr coMMITTEE-A BIG SYNDICATE FORMED
or WHICH J. r. MORGAN co ARE THE
HEAp-FoRECLosUR PROVIDED FOR
AND HEAVY REDUCTION Oh
FINED CHARGES Mas
AGERs TO ACT SPEEDILY
FIRST ASSES sMENT SET
FOR JANUARY 10
The plan for the reorganization OF the Philadelphia
and Readin- Railroad Company and its suDsididr!
cor,psnies was issued yesterday afternoon. II was
preparsi by a committee composed OF Ere leric J.
Olcot, Adrian Iselln. jr., j. Kennedy Tod. Henry
Bulge and Thomas Denny. Of New-ior% ana
George II Earle jr.. Sidney F. Tyler. Samuel X
shipley and Richard Y Cook. Of Philadelphia. j. T.
Morgan & Co. Of New-York Drexel & Co, OF Pn.la-
de!phia AMI J. :. Morgan & Co., Of London. are
designated as managers 10 carry out lhe p'an l"'
managers say:
Unless the acceptance Of the plan shall be- so
general as in the opinion Of the managers 10 obVat@
the necessity OF foreclosure the properties Of he
existing Reading companies Will be sold ana sue
cessor companies Will BE- organized under the laws
of Pennsyivanil; and the stocks and securities OF
these successor companies will be vested in nrw
company. formed or to be formed unde. tn laws q
PENNSYLVANIA Of some other State In our opr'cn
there is no serious difficulty in the Wa. Of reor-
ganization by foreclosure. and the plan has been
prepared on the assumption that foreclosure viii
probably be necessary.
Under the plan the following securities will be
created: General mortgage 1eo-year per cent bonds
sl4 OoOOc non-cumulative per cent frs, preferred
stock s2s 10000; non-cun.uatve per cent second
preferred stock $i2co00D: common stock $OWWe
PROPERTY TO BE AVAILABLE
The general mortgage will provide for the issue.
found desirable Of additional bonds mot exceeding
,fn. q.
Reading terminal bonds and Philadelphia and Read
ing Coal and Iron bonds. The mortgage will. sub
ject oay 10 tho bonds for which reservation is
m1de. he based upon properties or sfcuri-
ties os all she lines or railroad owned by
the Philadelphia and Reading Railroad Com
pany s27 miles: various leasehold lines 532
miles more or less and all property CT the
Coal and Iron Company. or the securities thereof
representing nearly 100000 acres of coal and timber
land. 1t will also have the benefit of equipment,
valued about SO coO Oeo. bat subject to about
s.. 00c of cartrust obligations which to be
acquired under the plan. and also the marine equip
ment OF the company. 1t will further have first
lien upon a majority more of the capital stock Of
various properties essential to tn system, part
of which is covered by the presen, general mort
gage The securities thus to be pledged earned last
year income OF $5s5.OCG Of which s44S.O'0
tuay received by the Philadelphia and Reading
Railroad Company in the of dividends. the
mainder being retained for betterments and working
capital
OF the bonds. s45 100 viii be used for undsturDed
bonds "a 4Oo0 900 will be sold to a syndicate and 800
000,O Will be used for new construction additional
equipment. etc. under carefully guarded restric-
tions not over .J)0'0 to he used in any one year
These bonds will be used only in such manner as
additionally to secure the new mortgage
Provision is made that. al any time after Nvidcrds
at the rate OF per cent year shall have been paid
for successive years the first prefer stock
the company may the second preferred stock
at par. one-halt into first preferred stock and
half into common stock. and the amounts OF these
latter may be increased in conformity. The stock
OF the company will be held by voting trustees
for five years and thereafter until the first pre-
ferred stock shall have received a cash dividend Of
4 per cent year for two consecutive years al
though the trustees may deliver the stock at an
earlier date. The voting trustees viii. in the mean
while. deliver certificates OF beneficial interest as
/ usual.
HOW THE PRESENT SECURITIES WILL,
STAND.
The basis OF exchange Of existing securities is az
follows:
RECEIVE.