The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1885-08-15
FINANCIAL.
% WALL STREET,
NEW YORK July 25, 1885.
60 the First Mortgage DondhoIdeB Of the
new YORK, WEST SHORE And BUFFALO
RAILWAY COMPANY:
% WALL STREET,
NEW YORK ,Tuf'

Being convinced that the interests of the New York
Central and Hudson River Railroad Company and of
she Bondhoders of the New York West Shore and
Buffalo Railway Company would be best promoted by
che former Company securing lease of the Railroad
of the latter Company, and working such Railroad in
harmony with its system, We opened negotiations
30 secure this result.
tn negotiations have reached point at which we
prepared to lay the following proposal before the
Bondhoders of the West Shore Company, in order
that each of them who may now so elect shall
have equal opportunity TO share with us the benefit OF
contract hereinafter mentioned and with the view
also of promoting unanimty and speedy termina
fon 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
snd Buffalo Railway Company, to take possession of
Che 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.
TIE conditions of the contract are as follows
FIRsT-That the securities to be issued by the reor
sanized Company shall be limited to- $50 900 900
four per cent Mortgage Bonds and -. $40, 100000
Capital Stock the bonds to be dated January l, 1886
and to mature at the expiration of the lease in
-Four hundred and seventy-tve years upon default
IN payment of interest for two consecutive years.
SECOND-That of the Mortgage Bonds. $25 600 600
shall be offered in exchange for the 500. 600 600
First Mortgage Bonds of the present Company. with
past due coupons attached-that is to say, 600 of
the new guaranteed bonds for 81, 600 of the old.
THIRD-That the remaining 500, 900, 600 except
inch amount may be necessary for reorganization
hall 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 pfoPery and for such other purposes as
River Railroad Company may from time to time think
necessary for the security development and operation
FoURTH-Ihat the Capital Stock of the reorganized
company shall re surrendered to the New York Cen
tral and Hudson River Railroad Company as aconsid
GRAFTON for its lease and guaranty.
FIFTH--Fhat the leased property shall be delivered
prior to January /, 1886
We therefore offer to the First Mortgage Bondhold-
eFs of the West Shore Company the opportunity to
svail themselves of agreement with the New York
Central and Hudson River Railroad Company, upon
the following conditions
J. FIRsT-That their bonds shall be deposited with us
with the agreement hereto attached duly executed by
the depoStOrs.
SECOND--That at least majority of the whole issue
Ehall 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,
eountersigned by the Union Trust Company in whose
sustody the bonds will remain until required by us for
purposes of reorganization.
In majority shall not be secured and
ganizaton 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
che 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 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.
DREXEII MORGAN g. CO.