The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1885-08-14
THE SUNDAY JOURNAL!
FINANCIAL.
% WALL STREET.
NEW YORK, July %, 1885.
To the First Mortgage B9ndhoIeB 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 A-1
Buffalo Railway Company would h- 4 .,I
securing lease of the Railroad
- 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
prepared lay The following proposal before tho
Bondhoders of the West Shore Company, in order
that each one of them who may now so elect shall
have equal opportunity to share with the benefit OF
our contract hereinafter mentioned and with the view
also of promoting unanimty and speedy termina.
ton of pending difficulties.
The New York Central and Hudson River Railroad
Company has executed a contract with agreeing
upon a reorganization of the New York. West Shore
and Buffalo Railway Company to take possession OF
the property of the reorganized Company under q
lease and to guaranty the principal aid interest of the
bonds hereinafter mentioned which are to be secured
by mortgage upon that property.
The conditions of the contract are as follows:
FlRsTThat The securities to be issued by the reor.
ganzed Company shall be LIMITED TO. $50 600 600
four per cent. Mortgage Bonds, and FLO 100000
Capital Stock the bonds to be dated January l. 1885,
and to mature at the expiration of the lease say in
four hundred aud soventyEve years. upon default
in payment of interest for two consecutive years.
SECoND-That of the Mortgage Bonds. $25, 900, 600
shall be offered in exchange for the. 300. 600 600
First Mortgage Bonds Of the present Company, with
past due coupons attachedthat is to say, 81 600 Of
the new gua1ant tied bonds for 81 900 of the old.
THIRD-That the remaining $25 600 600 except
such amount may be necessary for reorganization
shall not be issued except at 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 an
the Directors OF the New York Central and Hudson
River Railroad Company may from time 70 time think
necessary for the security development and
of the property leased
FoURTH-That the Capital Stock of the reorgan;zed
Company shall be surrendered to the New York Cen.
trail and Hudson River Ra:iroad Company as consd-
Grafton for its lease and guaranty.
FIFTH-That the leased property shall he delivered
prior to January l. 1856.
We therefore offer to the First Mortgage Bondhold-
Of the West Shore Company the opportunity to
avail themselves of agreement with the Now York
Central and Hudson River Railroad Company upoa
the following conditions:
FIRsT-That their bonds shall be deposited with us
with the agreement hereto attached duly executed by
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
shah have been secured, temporary receipts will ba
exchanged for engraved receipts negotiable in form
countersigned by the Union Trust Company in whose
custody the bonds viii remain until required by us for
purposes of reorganization.
In case majority shall not be secured and raor.
ganization perfected within the time required undr
the contract with the New York Central and Hudxo.
River Railroad Company the bonds will be returned
Tree OF expense upon surrender OF the receipts duly
assigned.
IL Is right that we should add that very large pro-
poron or the bonds required have already assented 10
Tic proposed pian Upon receiving the assent of .
majority in amount of the present West Shore bonda
immediate steps will Do taken which, we are advised.
will secure prompt ganization and prevent furthes
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 s. co.