New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-12-20
financial.
To the Holders OF
PHILADELPHIA AND READING
RAILROAD COMPANY'S
General Mortgage Bonds.
First. Second. and Third Pref
erence Income Bonds.
Deferred Income Bonds.
Stock.
NEW YORK pHII.AD
and OF receipts
OF Central Trust
Company OF
New-York therefor.

NEw-YoRK PHILADELPHIA AND LONDON,
December 10. 1895
Pursuant to announcement Of Messrs freder'c r.
o,cor Adrian IseItn IT. y Kennedy Tod Henry Bulge.
Thomas Denny George II. Earle. Jr.. sidney r. Tyler
Samuel r. shipiey. and Richard Y. Cook Committee
plan been prepared for the reorganization OF the %
adelpha and Reading system This plan has our cord"'
approval and pursuant 10 an arrangement WIN inc N
mitiee we have act Managers TO carry
It into effect.
Unless the acceptance Of plan shall be general as
in the opinion Managers TO obvate the necessity vi
foreclosure. the properties OF the existing i'eau"s ~
Do MES will sold companies VIII be organ
ze6 under OF Pennsylvania and the STOCKS anu
secuen companies VIII be vested III
rev company formed TO be formed under the laws OF
Pennsylvania q Of other State.
In our opnon there serious difficulty in the way OF
reorganization foreclosure and the plan has been pre-
pared assumption that foreclosure VIII probably oe
necessary.
To carry out the pian following securities will be
created
I. General Mortgage 1OO-Yenr per cent.
Gold Bonds for S114.OO0.OOo.
rhe mortgage will further provide Tor the ISSUE II
found desirable Of additional bonds secured thereby mot
exceeding s2iooo"N to meet the outstanding Phade'.
phia Reading Terminal Bonds and Philadelphia and
Reading Coal and Iron Bonds In which these bonds
or the property there by will be brought under the
new mortgage additional security therefor
Suitable arrangements will be made for sinking fund
out Of the Coal and Iron Company or
its successor to used General Mortgage
Bonds but O compulsory redemption OF the new bonds
can made prior TO their atury.
The mortgage Will. subject only TO the bonds for
which reservation made be based properties or
Of all the lines Of railroad owned by the Phla-
delphia and Reading Railroad Co.. 1921 miles
Various leasehod lines. $50 miles. more or less
All property Coal and Iron Company. or tho
thereof representing nearly 900 acres Of coal
and timber land
1t will also have the benefit OF equipment valued at
about $4,000 600 but subject to about sooooo OF
obligations which to be acquired under the
plan, and also the equipment Of the Company.
vii. further have first lien upon majority or
more Of capital OF various properties essential
system OF which is covered by the pres
Mortgage. The securities thus 10 be pledged
last year OF $685. ooo of which s44s 900
actually received by tho Philadelphia and Reading
Railroad Company In OF dividends. the remain
der bens retained for betternen's and working capital
The new mortgage will thus the security of vast
amount uable propert, addition TO that afforded
by the pi. ut General Mortgage
z. NOn-cumuIntive Is First Preferred Stock
for S2S.OOOOOO.
3. NOn-cumulntfve ~ Second Preferred
Stock for $40. OOO,OOO
4. Common Stock for s7O.OOO.OOO.
Provision Win be made that at any time after divi-
dends at the rate OF per per annum shall have
been paid for two successive the First. Pre-
ferred Stock. the Company may the Second
Preferred Stock at onehalt into First Preferred
Stock and onehalf into Common Stock and the amounts
Of latter may be increased In conformity.
Provision will be made that the stock OF the Com
pany shall be held by voting Trustees for Ave and
thereafter the First Preferred Stock shall have
received per cash dividend per annum for two
years although the Trustees deve: the
stock at an The Voting Trustees WILL in the
meanwhile deliver certificates OF beneficial interest
or the bonds:
sA 900 will be used for undsturbed bonds
$4,000 600 sold 10 Syndicate.
construction, additional equip
meni ETC. under carefully guarded
strc.ions. 81. 500 900 be used in
any one year These bonds will be used
only In additionally o
the mortgage.
The basis exchange OF existing securities follows