The sun., 1897-03-10
THE LEHIGH VALLEY DEAL.
xHE ENDkBrxDSHss OF TEE PIoKKR
EsIkTE WILL BE FUEDED.

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A formal announcement Of the agreement BE-
tween Drcxel & Co. the Phfl.delphia house of
J. p. Morgan 4 Co. Of this city. and the trustees
Of the Packer estate in regard to the stock Of tho
Jebish Valley Railroad Company held BY the
eotate was made yesterday.
The details Of the transaction are given in the
following onfcisl statement:
1T Is announced b. the trustees Of tho
Packer estate that they have arranged with
Nessrs. Drexci & Co. 10 fund for period Of years
the entire Indebtedness Of the estate. In eonncc-
ton with this Transaction Dre1el & Co. are given
controlled By the estate.
Tho equally important announcement Is
made that he Lehieh Valley Railroad has con
rseted with the same frm for general read
iustment Of It's finances. Il has Agreed 20 create
a series OF 5000 600 per cent bonds TO Be Sc
cured by ample unim paired assets. OF these
bonds. IS 900. 600 are to be issued now and have
been sold TO DreSel & Co.: s3. 600. 900 may be
issued as needed in the next TWO or three years.
The company reserves the right 20 increase the
amount OF the mortgage after 1899 by 81 .OO0.-
600 annually for seven years.
The Last mentioned bonds are 10 be used TO
acquire new property. equipment, &c. all OF
which shall become subject to the mortgage.
The Is, 600 now sold are expected no, only
10 pay the entire floating debt OF the railroad.
every dollar OF which represents Absolutely new
property purchased. but also 10 leave IL a sub
stAntial working capital and provision for its
legitimate constr action needs hereafter.
These transactions are based upon q verihca-
tion OF the railroad company's accounts, which
have been submitted TO Messrs. DTexel A Co"
The Indebtedness Of the Packer estate thus
provided for Is said TO be about o.. 800 900. No
Reorganization OF the railroad company IL nee
cient 10 meet all liabilities and to secure the new
issue OF bonds.
Much importance IL attached TO this tr.nsac-
top in financial circles because it will result in
ley Railroad and separate the interests Of the
COMPANY from those Of the Packer estate Tho
crcdit .of the company has suffered In recent
years from this close union, though II Is said
that the physical condition OF the property has
been well maintained
The Iehish Valley has been . disturbing fac
The company has been Obliged 10 be guided
somewhat in Its policy By the wishes Of the In
diyiduA operators along Its ltnea The change
har.nonIous rei.p,oes Win u. other .nthraS3,e s
coal roads
PHIADEIPHA March e.-The statement in
deal had been formally ratified BY the Lehigh
VALLEY directors a. their meeting to-day. The
matter gives rise TO report that changes In the
Of the Lehixh Valley viii shortly
occur. While the parties interested refused 10
discuss this contingency. there Ii said 10 be
probability that changes OF this nature are Inn
penting. The prfncipa! officials OF the Lehish
valley, including President Elisha p. Wilbur,
are trustees Of the Packer estate. and it Is said
that the new voters Of the holdings OF the estate,
v no Will. 10 AL intents and purposes, control q
TO substitute in the management their own