New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-12-18
General Mortgage Bonds.
First. Second. and Third Pref
erence Income Bonds.
Deferred Income Bonds.
Stock.
NETWORK. PHI


NETWORK, PHILADELPHIA, AND LoNpoH,
December 10. 1895.
Pursuant 10 the announcement Of Me'srs. rre's,"
Olco Adrian Iseln. Jr.. J. Kennedy TOD he"'y nuue'
Thomas Denny. George II. Earle. Jr. sidney r. D.
Samuel r. shlpiey. and Richard y COOK 'o"'"'' ~,
plan has prepared the reorganization Vi '"e
adelphia and Reading System. This plan mas o' ~
approval. and pursuant to an arrangement WIN VIC 49,
ittee we have undertaken act as Managers 10 carry
IT into effect.
Unless the acceptance the plan shall be so genera
in opinion Managers TO obviate inc heoes's "
foreclosure properties Of the existing Heau'"s ~
panes will he sold and successor companies VIM
zed under of Pennsylvania; ana 'he s'oo"s ~
secer OF these successor companies VIII be vesteh l"
new company formed to be formed under 'he law" "a
Pennsylvania Of some other State
In our opinion there serious difficulty In the way "
reorganization by and the plan has been pre-
nared on the ASSUMPTION that foreclosure will probably be
necessary.
70 carry out the plan the following securities will be
created
1. General Mortgage 1OO-Yenr per cent
Gold bonds for $114OOo.OOo.
The mortgage will further provide for the Issue. II
found desirable OF additional bonds secured thereby mot
exceeding sci 200 rect the outstanding Phiade-
phIa and Reading Terminal Bonds and Philadelphia ana
Reading Bonds. in which case these bonds
or the property thereby will be brought under the
new mortgage additional security therefor
Suitable arrangements will he made for a sinking uha
from the Coal and iron COMPANY VI
o used retire new
Bonds, but compulsory redemption OF the ne" pouS
be made prior to their aturity.
The new mortgage will. subject only to the bonds for
which made be based upon properties or
securities all the lines Of railroad owned by the Phs
delphla and Reading Railroad Co.. 1921 miles
Various easehold lines. 5j2 miles. more or less
All the property Coal and Iron Company, or the
thereof representing nearly 100000 acres OF coal
and timber land
II will also have the benefit OF equipment valued at
81 oQo iitn iect 10
carrus obligations which be acquired under the
PLAN and also the marine equipment OF the Company
1t Will further have first lien upon a majority or
more Of the capital Of various properties essential
to system OF which is covered by the pres
ent General Mortgage. The securities thus 70 be Pledged
earned last income OF S5s5OOo OF which *4tsVo
actually received by the Philadelphia and Readhs
Railroad Company the Of dividends the remain
being retained for betterments and working capital
The mortgage will thus have the security OF vast
valuable property in addition TO that afforded
by the present General Mortgage
p Non-cumuIntive 4< First Preferred Stock
for S2S.OOO.OOO.
3. NOn-cumuIativc - Second Preferred
Stock for S42.OOOOOO.
4. Common stock for S7OOOO.OOO.
Provision will be made that. at any time after dvi-
dends at OF per per annum shall have
been paid for successive years the First Pre-
ferred Stock, the Company convert the Second
Preferred par one-half into First Preferred
Stock and onehaf into Common Stock. and the amounts
OF these latter may be increased In conformity
Provision be made that the stock OF the Com
pany shall be by Trustees for five years and
until the First Preferred Stock shall have
received per cash dividend per annum for two
consecutive years although the Trustees deliver the
stock at an The Voting Trustees WILL in the
meanwhile deliver certificates Of beneficial interest
usual
! OF the bonds:
s44. $50. 900 Will be used for undisturbed bonds.
100000 sold to Syndicate.
| go MO for new additional
ment. etc. under carefully guarded re-
strictons $500 900 TO be used In
any year. These bonds will be used
only in such additionally 10
the mortgage.
The basis OF exchange OF existing securities follows