The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-03-03
CAN'T PAY INTEREST
READING noxpHoApEns WANT
THEIR MORTGAGE FORECLosED.
The Big Railway Corporation Unable
to Meet ObIfgations-Defcit This
Year viii Reach $4,000. 900.

PHILADELPHIA, March 2.--The Penn
sylvania company for insurance on lives
and granting annuities as trustees for the
Philadelphia & Reading railroad mortgage
bondholders to-day filed in the United
States Court bin In equity PRAYING for the
foreclosure of the mortgage. The Pennsyl-
vania company represents as trustee over
100000 Reading general mortgage bonds
The action of the company was unexpect-
ed, although there has been talk in the d.
rection of foreclosure ever since the fall
ure of the Olcott-Earle reorganization plan.
The Pennsylvania company has, it is said,
been actuated in its course by the theory
that foreclosure and reorganization
be effected at smaller outlay and on better
general terms than at any time. Since the
appointment of receivers the financial con-
dition of the Reading has steadily de-
Perforated, and the reorganization plans
that have in the meantime been presented
have each in turn failed of adoption by the
security holders.
The companys business reached its low
est ebb in 1894, when there was deficit
of $1,993, 007, including the operations OF
both the railroad and coal and iron COM
panies. The first two months of the pres
ent fiscal year-December and January
there has been a deficit of $685. 154, indicat-
& Ing indt the ueIlcll IOF the year VIII De IN
the neighborhood of 100000. The company
has a definite floating debt of over $I2, co.,
600, not including equipment notes., in adj
dition to which there are nearly $780, 600
of unadjusted accounts with the Lehigh
Valley and Prince q Co., an unacknowl-.
edged debt to the holders, of Philadniphia.
Reading & New England bonds, and a
contingent liability for large sum-
AS evidence of the straits to which the
company is now reduced, the surprising fact
developed to-day that the receivers had not
even enough money to pay the car trust
certificates as they mature. To the holders
of the s'series CT certificates this is no new
experience. Every few months $4,000 Of
these mature but none has been paid off
since September. 1893, and the holders have
been compelled to consent to an extension.
Yesterday being one of the interest periods,
$4,000 more matured, but the holders, in
stead of getting their money, were asked
to accept an extension until March 4,
1897, with interest at 6 per cent per an
The holders of the series ID car trust
certificates are also being kept waiting.
November last. $4,000 of these matured,
and the holders We're asked to wait a few
months, as the receivers would not be
able to pay them until March i. That day
has now come and gone, but the certificate
The Reading general mortgage, for the
foreclosure of which proceedings have at
last begun is for 500, coz, 0c0, against which
bonds for q like amount are authorized.
but only $A, SIS 1873 outstanding. The
bonds mature in 1898 and bear interest at
the rate of per cent. per annum, payable
semi-annually, but no interest has been paid
since January, 1898, two years coupons be-
in the event of default, foreclosure pro-
ceedings may be Instituted by the holders
of not less than 10 per cent of the amount
of bonds outstanding In this case the
whom over $30,000 coo, or something like 70
per cent, are on deposit