The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1885-08-05
FINANCIAL.
% WALL STREET,
NEW YORK, July 25, 1885. s
To The First Mortgage DondholdeB 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 system, we opened negotiations
to secure this result,
These negotiations have reached point at which we
prepared to lay the following proposal before the
Bondholders of the West Shore Company, in order
that each Of them who may elect shall
have equal opportunity to share with the benefit of
contract hereinafter mentioned and with the view
also of promoting unanimity and speedy termins-
ton of pending difficulties.
The New York Central and Hudson River Railroad
Company has executed a contract with us agreeing,
upon reorganization of the New York, West Shore
and Buffalo Railway Company TO take possession of
the property of the reorganized Company, under a
lease and 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
ganzed Company shall be limited to. 500 600 600
four per cent. Mortgage Bonds, and 10. coo 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 seventyive years, upon default
in payment of interest for two consecutive years.
shall be offered in exchange for the. $50 5000
First Mortgage Bonds of the present Company with
past due coupons attachedcthat is to say ooo OF
the guaranteed bonds for 80. 900 of the old
THIRD-That the remaining 20, 600. 600, except
such amount may be necessary for reofgani
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 as
the Directors of the New York Central and Hudson
River Railroad Company from time to time think
necessary for the security development and operation
! OF the property leased.
FoURTl-That the Capital Stock of the reorganized
Company shall be surrendered to the New York Cen
trial and Hudson River Railroad Company aconsid-
Grafton for its lease and guaranty.
FIFTH-That the leased property shall be delivered
| prior to January l. 1886.
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-That their bonds shall be deposited with us.
with the agreement hereto attached duly executed by
the depositors
SEooND-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 case 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 assened to
| the proposed plan Upon recevin; the assent of 8
majority in amount of the present West Shore bonds
immediate steps will be taken which, advised
will secure prompt reorganization andpreyent further
depreciation and waste of the property.
The right is reserved 10 terminate at any time The
privilege of accepting the offer hereby made
DREXEL.. MORGAN s. 90.