Norwich bulletin., 1921-02-15
To Dissolve Coal and Carrier COmbila Plan For Segregation he Reading Compans Af- fliated Corpora Has Been Filed.

? Philadelphia. Feb IA plan for the segregation of the Reading company and affiliated corporationsA uecreed by the United States supreme court, and modi- fications suggested by the government, were filed with the federal district court here late today. March 1st was fixed to hea rargument on the plan.
 The plan proposed by the Reading company and it's associated companies, which have been adjudGed an illegal com bination, provides that the Reading com pany, holding concern, will assume the S96,524, 900 general mortgage 4 per cent bonds, which are the joint obligation of the Reading company and the Philadel- phia and Reading Coal and Iron ccm- pany. The coal company will pay the Reading company $10,O00 900 in cash, or current assets at market value. and S25,- coo 900 in 4 per cent. mortgage bonds of the coal company.
 The Reading company will merge the Philadelphia and Reading Railway com pany under the authority of the present charter of the Reading company and will subject the railway property to the direct lien or the general mortgage. The nam> of the Reading company after the mer. ger will not be changed and the Read ing company will be subject to federal and state regulations as a common car rier.
 The proposed plan asks the court te defer the actual sale of the stock held by the Reading company in the Central Railroad company of New Jersey pend- ing the grouping of railroads by the in. terstate commerce commission under tn, transportation act, but subject to the further order of the court
 To this last proposal the government entered an objection and suggested tat the Reading company shall .'witli all due diligence" offer for sale at reasonable price and upon reasonable terms tho stock of the Central Railroad coinpanO ] of New Jersey now owned by it, for { l period of years. The government leavel it to the court to name the number O years. If at the expiration of suci period a sale of the stock has not beer made, then upon application of the attor ney general the court may decree a sal at public auctione
 The Reading company owns S14,504.o0 of the $27,436,00o stock of the Jerse, Central, and in turn the Jersey Centra owns $S,4S9.000 of the $e,212,500 stocl of the Lehigh and Wilkesbarre Goa company.
 I The government's opposition to tn proposal to place the Reading company
 interest in the stock of the Jersey Cen tral in the hands of trustees pending tn
 working out of the regroupins of raj
 roads by the interstate commerce con
 mis ,l3r is because it "medus in practi g
 effect continuance of the status GU
 indefin4,e'!
 A plan submitted separately for th
 disposal of the Jersey 9CentraFs intere, in the stock of the Lehigh and Wilke, barre Coal company provides that tn interest shall be sold to corporations II,
 affi'ialed or identified with any of il
 concerns affected by the dissolution plan
 In accepting this plan. Judges Buffin,
 ton, Woolley and Davis modified a d cree previously entered enjoining u
 Central Railroad of New Jersey receiyir dividends from the Lehigh and Wirke barre Coal company. so as to permit Il : railroad company to receive such di, d7nds pending the sale of the coal stoc The Reading company is capitalized !; | s7e 100000 in common stock. S23.OO0 O of first preferred and s42oo 900 in SC 2 ond preferred. The Baltimore and Oh 5 railroad and the New York Central ra road own s6o,515,ooo of the capital sto
 of the Reading company