New-York tribune., 1895-12-17
First. Second. and Third Pref
erence Income Bonds.
General Mortgage Bonds,
Deferred Income Bonds.
Stock.
N.u~yl- Vnnx ptrfI AM

Mortgage NJ
Deferred Income Bonds So,y york therefor
December 49, 1895.
Pursuant to the OF Messrs Frederic r.
O,co,t Adrian Iseiin Jr Kennedy Tod Henry bunse'
rhoma. Denny George H. Earle Jr., sidney r. Tyler
Samuel r. shipey, and Richard Y. Cook, Comh'''ee :"
plan been prepared for the reorganization OF '"e
| adepha and Reading System. This plan mas our co'u
approvai and pursuant arrangement with the 'o
mee. we have undertaken to act NJ ''e "
It into effect. -
Unless the acceptance Of the plan shai' oe 10 se"e
in the opinion Of the Managers to obvate the hece' "
foreclosure the properties Of the existing Heaons oo
panes will sold and successor companies VIII oe 's
zed under the laws OF Pennsylvania; ana tne e'oe gu"
OF these successor companies will be vested IN
new company. formed to be formed nnder 'he law" VI
Pennsylvania or OF some other state.
In our opinion serious dicuity In the way "
reorganization foreclosure and the plan has eeen
on the assumption foreclosure will probably be
necessary. -,
created
!. General Mortgage 1OO-fear per cent?
Gold Bonds for S114OOO.OOO.
The mortgage will further provide for the Issue. II
found desirable OF additional bonds secured thereby mot
exceeding s2i 100000 to meet the outstanding Phade
phia and Reading Terminal Bonds and Philadelphia ana
Reading Coal and Iron Bonds In which case hese oo"us
or the property thereby will be brought under the
new mortgage additional security therefor
Suitable will be made for sinking und
the from the Coal and iron company or
its successor to retire General Mortgage
Bonds compulsory redemption OF the new bonds
can made prior TO their IT aturfty.
The new mortgage will subject only to the bonds FOR
which reservation made. be based upon properties or
securities all the lines Of railroad owned by the Phia
depha and Reading Railroad Co.. 321 miles
Various leasehold lines. 552 miles. more or less
All the property Coal and Iron Company or the
thereof representing nearly 100000 acres OF coal
and timber land.
II VIII, also have the benefit Of equipment valued at
abou. So subject TO about s7oOOO0 OF
cartrst obligations which to be acquired under the
plan and aiso the marine equipment Of the Company
II will further have first lien upon majority or
more Of capital stock OF various properties essential
70 the system no part Of which covered by the
en General Mortgage The securities thus to he peyed
earned last year s5s5 0OO OF which $44s
was actually received by the Philadelphia and Reading
Railroad Company in the OF dividends the remain
der being retained for betermens and working capital
The mortgage will thus have the security OF vast
OF valuable property in addition to that afforded
BY the present General Mortgage.
2. Non-cumuIative ~ First Preferred stock
for S2SOOO.OOO.
g. NOn-cumuIative 4$ Second Preferred
stock for S42,OOOOOO.
g. Common stock for x7O.OOO.OOO.
Provision Will be made that. at time after dvi-
dends the OF per cent. annum shall have
been paid for successive years the First Pre-
ferred Stock the new company convert Stcohu
Preferred Stock at one-half into First Preferred
Stock and onehaf into Common Stock. and the amounts
Of these latter may be Increased in conformity
Provision will made that the stock Of the Com
pany shall held by voting Trustees for five and
thereafter the First Preferred Stock shall have
received 4 per cent cash dividend per for
consecutive years although the Trustees deliver the
stock at an earlier The Voting Trustees WILL in the
meanwhile certificates Of beneficial interest
usual.
OF the bonds
S44 $50 coo will be used for undlsturbed bonds.
$4,000 sold a Syndicate.
500 600 900 are construction. additional equip
ment. etc. under carefully guarded
strictions not 81 800. 600 TO be used In
any year. These bonds will be used
only in such manner additionally TO
the mortgage
The basis OF exchange OF existing securities Is as folows