The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1885-08-11
FINANCIAL.
% WALL STREET,
NEW YORK, July 25, 1885. !
To The First Mortgage BoadholdeTs Of the
new YORK, WEST SHORE AND BUFFALO
RAILWAY COMPANY:

Being convinced that the interests of the New York
Central and Hudson Liver 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 SYSTEM we opened negotiations
to secure this result.
These negotiations have reached point at which
prepared to lay the following proposal before the
Bondholders Of the West Shore Company in order
that each of them who may now so elect shall
equal opportunity to share with the benefit of
contract hereinafter mentioned and with the view
also of promoting unanimty and speedy termna-
ton of pending difficulties.
The New York Central and Hudson River Railroad
Company has executed contract with US agreeing,
upon reorganization of the New York. West Shore
and Buffalo Railway Company to take possession of
the property of the reorganzed Company under q
lease and guaranty e 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- $50 600 900
four per cent Mortgage Bonds, and. 81 O. 600 600
Capital Stock the bonds to be dated January l. 1886
and to mature at the expiration of the lease say in
four hundred and seventy-fve years upon default
in payment of interest for two consecutive years.
SECoND-That of the Mortgage Bonds .$25 900. 900
shall be offered in exchange for the $50 600 600
First Mortgage Bonds of the present Company with
past due coupons attached-that is to say 1 900 Of
the new guaranteed bonds for So, 600 of the old.
THIRD-That the remaining $25, 900, OOO 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
FoURTH-That the Capital Stock of the reorganized
Company shall be surrendered to the New York Cen
trail and Hudson River Railroad Company a conSid
GRAFTON for its lease and guaranty.
FIFTH-That the leased property shall be delivered
prior to January J. 1886.
We therefore offer to the First Mortgage Bondhold
ers 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-That their bonds shall be deposited with us
with the agreement hereto attached duly executed by
the depositols.
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 US for
purposes of reorganization.
In majority shall not be secured and reor-
ganzation 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, we are advised
will prompt reorganization and prevent further
depreciation and waste of the property.
The right is reserved terminate at any time tho
privilege of accepting the offer hereby made.
DREXEL. MORGAN e. co