The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1885-08-20
% WALL STREET,
New YORK, July 25, 1885.
To the First Mortgage BondlolbB Of the
NEW YORK, WEST SHORE AND BUFFALO
RAILWAY COMPANY:

Being convinced that the interests of the New York
Central and Hudson River Railroad Company and of
the Bondholders of the New York. West Shore and
Buffalo Railway Company would be best promoted by
the former Company securing lease of the Railroad
OF the latter Company and working such Railroad in
harmony with its own system, opened negotiations
to secure this result.
These negotiations have reached point at which we
are prepared lay the following proposal before the
Bondhoders of the West Shore Company, in order
that each one of them who may elect shall
have equal opportunity to share with the benefit of
our contract hereinafter mentioned, and with the view
also OF promoting unanimity and speedy terlnina-
ton of pending difficulties.
The New York Central and Hudson River Railroad
Company has executed a contract with agreeing,
upon reorganization of the New York, West Shore
and Buffalo Railway Company, to take possession of
the property of the reorganized Company, under
lease to guaranty the principal and interest of the
bonds hereinafter mentioned which to be secured
by mortgage upon that property.
The conditions of the contract are as follows
FIRST-That the securities to be issued by the
ganized Company shall be limited to. $50 600 600
four per cent Mortgage Bonds and $40 600 900
Capital Stock the bonds be dated January /, 1886
and to mature at the expiration of the lease say in
four hundred and seventyhve years, upon default
i'll payment of interest for two consecutive years
shall be offered in exchange for the 200 oOoooO
First Mortgage Bonds of the present Company, with
past due coupons atached-that is to say, 81 600 OF
the new guaranteed bonds for ~ 900 of the old.
THIRD-That the remaining S25 600, 600, except
such amount may be necessary for reorganization,
shall not be issued except the request of the New
York Central and Hudson River Railroad Company.
to provide for prior liens. necessary terminals and
such other property and for such other purposes
the Directors of the New York Central and Hudson
River Railroad Company may from time to time think
necessary for the security development and operation
of the property leased.
FOURTH-That the Capital Stock Of the reorganized
Company shall be surrendered to the Now York Cen
trail and Hudson River Railroad Company consid-
Grafton for its lease and guaranty.
FIFTH-That the leased property shall be delivered
prior to January l, 1856.
We therefore offer to the First Mortgage Bondhod-
of the West Shore Company the opportunity to
avail themselves of agreement with the New York
Central and Hudson River Railroad Company upon
the following conditions:
FIRsT-Ihat their bonds shall be deposited with us,
with the agreement hereto attached duly executed by
the depositors
SECoND-That at least majority of the whole issue
shall be deposited.
Pending the deposit of such majority, temporary
receipts will be given for the bonds After majority
shall have been secured, temporary receipts will be
exchanged for engraved receipts negotiable in form,
countersigned by the Union Trust Company in whose
custody the bonds will remain until required by for
purposes of reorganization
In a majority shall not be secured, and reor
ganization perfected within the time required under
the contract with the New York Central and Hudson
River Railroad Company the bonds will be returned
free of expense upon surrender of the receipts duly
assigned.
1t is right that should add that very large pro-
portion of the bonds required have already assented to
the proposed plan. Upon receiving the assent of
majority in amount of the present West Shore bonds.
immediate steps will be taken which, advised,
will prompt reorganization and prevent further
depreciation and waste of the property.
The right is reserved to terminate at any time the
privilege Of accepting the offer hereby made.
DREXEL, MORGAN g. co.