The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1885-08-13
n
% WALL STREET,
NEW YORK, July 25, 1885,
To The First Mortgage BoadhdlcB Of The
new YORK, WEST SHORE And BUFFALO
RAILWAY COMPANY:
Rail- WAY 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 ant
Buffalo Railway Company would be best promoted by
the former Company securing a lease Of the Railroad
of the latter Company, and working such Railroad il
harmony with its own system, we opened negotiations
to secure this result.
These negotiations have reached a point at which WI
are prepared to lay the following proposal before thu
Bondholders of the West Shore Company. in orde,
that each one of them who may now so elect shall
have equal opportunity to share with US the benefit Of
our contract hereinafter mentioned, and with the view
also of promoting unanimity and a speedy termina
ton of pending difficulties.
The Now York Central and Hudson River Railroad
Company has executed a contract with us agreeing
upon a reorganization of the New York, West Shore
and Buffalo Railway Company, to take possession OF
the property of the recognized Company, under
lease, and to guaranty the principal and interest of the
bonds hereinafter mentioned, which are 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 reor
gained Company shall be limited to-. $50, 600, 600
four per cent. Mortgage Bonds, and $40. OOO, 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-tive years, or upon default
in payment of interest for two consecutive years.
~SECoND-Thato of the Mortgage Bonds 1925 600 600
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, 81 900 of
the new guaranteed bonds for So. 900 of the old.
THIRD-That the remaining $25 900 .OOO, except
such amount as 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 as
the Directors Of the New York Central and Hudson
River Railroad Company may from time to time think
necessary for the security IAVnilnYnapt and nnapntiOp
of the property leased.
F~oURTH-Tha the Capital Stock of the reorganized
Company shall be surrendered to the New York Cen
trail and Hudson River Railroad Company as a consid-
Grafton for its lease and guaranty.
FIFTH-Tha the leased property shall be delivered
prior to January L, 1856.
We therefore offer to the First Mortgage Bondhold-
es of the West Shore Company the opportunity to
avail themselves of our 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 depOsitors.
SECoND-That at least a majority of the whole issue
shall be deposited.
Pending the deposit of such majority, temporary
receipts will be given for the bonds. After a majority
shall have been secured, temporary receipts will be
exchanged for engraved receipts, negotiable in form,
countersigned by the Union Trust Company, il whose
0"sVous Che oohus VIII remain untll required by US tor
purposes of reorganization.
In case a majority shall not be secured, and a 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 we should add that a very large pro-
portion of the bonds required have already assented to
the proposed plan. Upon receiving the assent of a
majority in amount of the present West Shore bonds,
immediate steps will be taken which, we are advised,
will secure 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 & &C.