New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1885-08-07
financial.
- wALr-sr. NRw.YoRE. July 20. 1888.
TO THE FIRST MORTGAGE BoNDHoLDERs OF
THE
NETWORK, WEST SHORE AND BUFFALO
RAILWAY COMPANY:

BEING convinced that the interests Of tho NewYork Cen
trial and Hudson River Railroad Company and OF the bond
holders Of the NewYork West Shore and Buffalo Railway
Company would DO best promoted by the former company
curing lease Of the railroad Of the latter and work.
ing such railroad in harmony with les own system, We
opened negotiations to secure this result.
These negotiations have reached point at which We
prepared lay the following proposal before the bondhodrs
of the Shore Company that each Of them
who elect shall have equal opportunity to share
with the benefit Of hereinafter mentioned and
with the view also Of promoting unanmty and speedy
termination Of pendin difficulties.
The NewYork Central and Hudson River Railroad Com.
pany has executed contract with agreeing,
ganzation Of the NewYork. West shore and Buffalo Rail-
Company take possession Of the property of the
organized company under lease and 20 tho pn
cpa interest OF the bonds hereinafter mentioned which
are to be secured by mortgage upon that property.
The conditions Of the contract folowsi
FIRsTThat tho securities to be issued the reorganised
Company shall BIO limited to- 900
-Four per cent Mortgage Bonds, and. 10000, 900
Capital Stock the bonds to be dated January 1885, and to
the expiration Of tho lease In 476 yeara or
default in payment Of interest for two consecutive
years.
sECoND-Thatof the Mortgage Bonds .s25 O0O, 900
Shall be offered exchange for tho 100000
First Mortgage Bonds OF the Company with past due
coupons attachedhats to OF tue new guaranteed
bonds for $1,000 OF the old.
THIRD-That the remaining S26.00O.0O0, EXCEPT such
amount be for reorganization shall not be
issued at the request Of the NcwYork Central and
Hudson Railroad Company to provide for prior liens,
terminals and such other property and for such
other purposes the Directors OF the NewYorK Central and
Hudson River Railroad Company may from time to time think
necessary the security development and operation OF the
property leased.
FOURTHThat the capital stock the reorganized CON-
paDy shall surrendered the NewY Central and Hud
River Railroad Company confederation for its lease
and guarantee.
PIFTH-That tho leased property shall delivered prior
TO Jan. /. 1885.
5h,yAa fba
West Shore Company the opportunity to avail themselves OF
with the New York Central and Hudson River
Railroad Company upon the following conditionsi
FIRST-Tat their bonds shall be deposited with with
agreement hereto attached duly executed By tho de-
postors.
sECoND-That majority of tho whole issue shall
be deposited
Pending deposit Of such majority temporary receipts
will be given for the bonds After majority shall have
been secured temporary receipts will be- exchanged for
receipts negotiable in forms countersignod by tho
Union Trust Company In whose custody the bonds will re-
until required BY FOR tho purposes Of rcorgant
zatiOn.
In q majority shall not DO secured and reorgani
perfected within the time required under the contract
with New-York Central and Hudson River Railroad
Company the bonds will be returned free OF expense upon
surrender OF the receipts duly assigned.
II right should aid that large proportion
Of required already assened to the proposed
Upon the assent OF majority in amount OF
present shore bonds immediate steps will be taken
which, advised will secure prompt reorganization
and prevent further depreciation and waste Of the
property.
The right terminate time the privilege
OF accepting the Offer hereby male.