The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1895-12-17
PLAN IS PUBLISHED
HOW IT IS PROPOSED TO REORGAN-
JZE THE READING.
Issued Simultaneously in New York and
London, Signed by Drexei of Philadei-
phia and the Morgans Of New York and
London-AIternative Presented in Case
the Plan is Not Provisions for
the Issue of Bonds and Their APplica-
tiou-Changes Contemplated in the
Burlington Management-RaiIway News

New York, Dec. 16.-The official plan
of reorganization of the Reading sys-
TEN was published simultaneously in
this city and London today. It is sign
ed by Messrs. ]. P. Morgan & Co. Of
New York, Drexei & Co. of Philadelphia
and J. S. Morgan & Co. of London It
is declared in the preamble that unless
the acceptance of the plan is general
the properties of the existing companies
Will be sold and successor companies
organized under the laws OF Pennsyl-
vania, and the stocks and bonds OF
these successor companies will be vest
ed in a new company to be formed un
der the laws Of Pennsylvania, or Of
some other state. The plan has been
prepared on the assumption that fore
closure will probably be necessary.
1t provides for the issue of STA 600, 900
general mortgage 100 year 4 per cent
gold bonds; SIS, 000, 900 non-cumulative
first preferred stock; s42, 100000 4 per
cent non-cumulative second preferred
stock and $40 900, 900 of common stock.
The mortgage win further provide for
the issue, if found desirable, Of addi-
tional bonds secured thereby, not ex-
ceeding $21 goo, 900. to meet the outstand-
and iron bonds.
The new mortgage will have the Sc
curity of a vast amount Of valuable
property in addition to that afforded by
the present general mortgage, includ-
ing $4,000, 900 of equipment, now sub
| ject to 300, 900 Of car trust obligations;
an the property Of the coal and iron
company. representing nearly 100000
| acres of coal and timber land, and will
Grcs- Nri. ~
or more of the capital stock Of various
properties essential to the system.
Provision is made for a voting trust
! to control the stock for five years, or
| until the new first preferred stock shall
have receipts OF per cent cash div1-
dend per annum for two consecutive
years. although the trustees may deliv-
er this stock at an earlier date
OF the stock s44 $50, 600 will be used
for undisturbed bonds; $4,000, 900 sold to
a syndicate and 500, 00o.0 900 are for new
construction, additional equipment,
etc, not over s1,500.o0O to be used in
any one year. The new bonds will be
for 81 900, 900 each. Interest will start
from January l. 1896, first coupon to
mature July /, 1896.
| The stock is assessed 20 per cent and
| the deferred incomes per cent. The
assessments are payable in four equal
| Instruments, AT IedSt iuil1rIy Gays dpdI |
| The first installment of one-fuorth of
the entire amount must be paid on or
| before January 10, 1886.
A syndicate guarantees the payment
| of the assessment and also guarantees
| the extension or payment of about S2O.-
| 600 900 of the Improvement mortgage
and coal and iron company bonds. most
| Of (which will mature within the next
| two years.
The annual fixed charges OF the new
| company will be about 100000. An
| almost immediate reduction Of $1,000
per annum in these charges will, how
| ever, be effected through the refunding
or extension of the various bonds short
" to mature. It will start without
/ floating debt and unhampered by car
| trusts and will have substantial
working cash capital and facilities to
| tDx.rea g, business