The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-04-07
MEETING OF BONDHOLDERS.

MEETING OF BONDHOLDERS.
HOLDERS WITH THE Pennsylvania RAIL-
HoAD.
defaults having been made In the interest OF
the first mortgage bonds or the u, O. and i. O.
bonds, there was u meeting OF the bondhoders
yesterday at No. so Wall street. Mr.. Mliken,
who Is supposed TO represent the Pennsylvania
Railroad interest was called to the chair, and IL
was then q mooted question whether that gentle
man "chdlike and blandn really intended to
organize the meeting in the interest OF the Penn
syvania Railroad, really sired the interest or
the bonds on which the default had been made.
Mr. Southmayd (ol the firm o. Evarts southmayd
4 Choate) took the fioor at O'Clock P. M, and
held 1t by continuous talk until three O'Clock.
His argument was most persuasive. He showed
that default has been made in the payment OF the
interest upon certain mortgage bonds, which are
prior liens upon certain portions sections of the
railroad line or the Columbus, Chicago and In
diana Central Railway company, embraced
in and covered by that company's con-
solidated first mortgage, dated February
90, 1868, made to James A. Roosevelt and
william r. FosdicK. as trustees for its so-caIed
consolidated first mortgage bonds for SIS, 600 600,
have been issued. the residue having been re-
served for the purpose OF taxing up certain OF the
said underlying sectional mortgage bonds, and 1t
is apprehended that by OF the default afore-
said, some proceedings may be taken which will
prejudice or leopard the rights and interests OF
the said consolidated first mortgage bondholders.
And whereas default has likewise been made In
tue payment OF the interest upon the so-caled
second mortgage bonds of the said The Columbus,
Chicago ana Inoiana Central Railway Company,
issued under ana secured by said company's So
called second mortgage, dated December IS, 1868,
made to Frederick r. Fowler and Joseph T. Thomas,
as trustees, ior securing contemplated issue OF
s5 oo0, 900 or second mortgage bonds, WHEREOF part
it IS apprenended that by reason OF sucn default
proceedings may be taken for the foreclosure or
AND that the Columbus Chicago and Indiana
Central Railway Company Is encountered by
floating DEBT and by other pecunlary emoarrasS-
ments. aud it is apprehended mat there may re-
suit thereirom consequences prejudiclal 10 the
security or interests OF the SAID hrst mortgage
entertained that by reason OF some oil the matters
aDove referred TO- or upon some other grounds or
Tor some other cause, an attempt or attempts may
De made to invalidate or TO terminate the lease
and contract dated January p, 1859 anu amended
lease and contract dated February /, 1870, made
respectively between the Columbus, Chicago and
Indiana Central Railway Company, oil the first
part, the Pittsburg. CINCINNATI and St. LOUIS Rail-
way company, Of the second part, and the Penn
sylvania Railroad Company, OF the third part,
Indlana Central Railway Company was leased to
the Plttsburg, Cincinnati and ST. Louis Railway
Company upon certain terms and conditions, in
Guiding the agreement by the said the Pitts
burg, Cincinnati and ST Louis Rallw az Company
TO pay the interest absolutely upon O certain
amount and contingently upon further amount,
or the bonds OF the Columbus, Chicago anc Indiana
central Railway Company, ana whereby tue
Pennsy lvania railroad Company guaranteed the
performance Dy the Pittsburg, Cincinnati ana ST.
LOUIS Railway company OF the stipularlons and
and contract and amended lease and contract,
and under which lease ana contract and amended
lease and contract, and the MEMORANDUM or GER
tincate subsequently, placed upon the SAID consoll-
dated first moi tgage bonds OF the Columbus, Chl-
tue assent aud by authority OF the said rne Pitts
burg, cincinnati and st. Louis Railway Company,
ana inc said The Pennsylvania Railroad COMPANY
through their respective Presidents the said con-
solIdated first mortgage 0ondnolders claim that
the said two last above named railroad companies
are respectively liable Tor the payment Of the
interest on their said nrst mortgage bonds as the
same snail mature.
lease and contract or amended lease and contract
shall be legally Invalldated or terminated, or the
lessee therein shall be legally deprived ol the pos
session oil the premises thereby demlsed, the
SAID The pennsylvania Railroad Company and The
Pittsburgh, Cinclnnar and S.. Louis Railroad Com
pany, respectively, may tnereupon ailege ana
claim that by reason thereof they are discharged
from tneIr obligation 70 pay the interest upon the
said consolidated first mortgage bonds. And
whereas, IL Is given out and alleged Dy The said
lessees that they are about TO institute some pro-
ceedlngs In equity 70 be reviewed from the obIga-
tions imposed upon them by such lease, or some
or sucn obligations, upon the ground OF alleged
defaults upon the part OF the lessons In the per-
torrance or the stipulations on their part con-
talned In the lease and contract and amended
lease ana contract.
Alter reading an the terms or said lease the
venerable ana learned counsel said that Ii was
desirable that all general meetings OF the parties
In interest under THIS agreement should consider
and de termine any OF toe matters herein provided
Tor, may be called by either OF the members OF
the said committee; that notice OF the same shall
be given, as provided In the preceding first afti-
Gle, and that In the determination OF any question
arising az such meetings the yotes o. majority
teeir representatives or assigns as shall attend
such meetings or be represented at the same by
proxy, shah prevail, except that for asserting TO
\ new arrangement, authorized by the iourtn
article, the assent OF two-thlrds Of all the sub
scrIDing pondholders SHAH be necessary, as pro-
yided oy that article. And that the agreement 10
this end should not Ue operative unless II snail be
subscribed by holders OF the said bonds to the
aggregate amount or A. least One-h2f OF the bonds
outstanding. And That nnaily II was agreed that
all the powers which BY this instrument are dele
gated 10 tins committee are intended to De and
are delegated TO the committee appointed at New
YORK, with wnoms0cyer the bonds may be depOs.
London and Geneva are 20 be merely suDcommit-
tees TO receive, hold and transmit the bonds, and
to receive back aud distribute the same or tneIr
pr0Ceeus and to act as toward the New York COM
mlttee and the other subscribing DOndholders ana
the Union Trust Company as the representatives
or bondboders depOsitlng their bonds with them,
the said London ana Geneva committees
That all copies OF this agreement, which shah
be subscribed by any OF the holders OF the said
bonds and delivered TO and accepted Of the said
committee, snail have ike effect as II their sigma
lures we're nereunto subscribed.
set their hands aud seals the 23d day OF February,
1876.
ties IN interest snoud sign the agreement as
above, and that proceedings should DO commenced
against the pennsylvania Railroad TO make them
fulfil the conditions Oh their lease.
some OF the incest questions OF railroad law are
likely TO come up In TINS connection.
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ADr NAnur-DC