Reading Co. (Railroad and Coal.)
By reading the subject " Reorganization " it will be seen that that refers to a rearrangement of the capitalization of a company which had been unable to meet its obligations, so that under the new plan better results may be looked for. Proceedings of this nature are generally forced upon the company by its creditors, or security holders, and the property put through " foreclosure proceedings." A " readjustment " is virtually the same thing; cause and effect being the same, but a voluntary proceeding on the part of the security holders, and customarily without foreclosure.
At hand for immediate use.
Mortgage upon real estate, and given to secure a debt or promise. If a mortgage is given upon land it usually covers all improvements, such as buildings, etc., upon the same. (For further information see " Mortgage " and " Real Estate Mortgage Bonds.")
Naturally, any bonds secured by a mortgage upon real estate would come under this title. An example of such a bond issued by a corporation is that of the Western Union Telegraph Co., which has a " funding and real estate mortgage " issue, bearing 4 1/2 % interest, due May, 1950. In practice such a bond may be issued by a corporation at a time when a comparatively small amount of money is needed, when it would not be necessary for its proper security to mortgage other property of the corporation, there being sufficient real estate, such as, for example, lands, and buildings thereon, which in itself would be ample security for the bond issue. Such property may be mortgaged to especially secure a real estate issue and thus raise the needed money, and leave a large part of the balance of the corporation's property free from that particular encumbrance.
Common in Massachusetts. A voluntary association - not an incorporated company - managed by trustees in whom is vested the ownership of real estate held for investment purposes, for the benefit of a number of people jointly. Real estate cannot be held in Massachusetts by an incorporated company organized under its general laws for investment purposes; only for business needs. Certificates showing ownership are usually issued to the investors by the trustees.