The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1885-08-12
ADJUSTMENTS.
FINANCIAL.
% WALL STREET, !
NEW YORK, July %, 1885. {
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 BIO best promoted by
the former Company securing lease of the Railroad
of the latter Company and working such Railroad in
harmony with its own system, opened negotiations
to this result.
These negotiations have reached point at which we
prepared to lay the following proposal before tho
Bondholders of the West Shore Company in order
that each one of them who may so elect shall
have equal opportunity to share with the benefit of
contract hereinafter mentioned and with the view
also of promoting unaninity and speedy termina-
ton of pending difficulties.
The New York Central and Hudson River Railroad
Company has executed a contract with agreeing.
upon a reorganization of the New York, West Shore
and Buffalo Railway Company, to take possession OF
the property of the reorganized Company, under q
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:
FIRsTThat the securities to be issued by the
ganized Company shall be limited to. $50 900 600
four per cent. Mortgage Bonds and $40 O0O 600
Capital Stock the bonds to be dated january l. 1885,
and to mature at the expiration of the lease say in
four hundred and seventyve years, or upon defauls
in payment of interest for two consecutive years.
SnCOND-That of the Mortgage Bonds, 1925, 600 600
shall be offered in exchange for the $50 GOO 600
First Mortgage Bonds of the present Company. with
the now guaranteed bonds for 81 900 of the old.
THIRD-That the remaining $25 900, 600, except
such amount 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
Ever Railroad Company may from time to time think
necessary for the security development and operation
al he
FoURTH-That the Capital Stock Of the reorganizsd
Company shall be surrendered to the New York Gem
trail and Hudson River Railroad Company as a oonsid-
Grafton for it's lease and guaranty.
FIFTH-That the leased property shall be delivered
prior to January l. 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 depositors.
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 DO
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 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 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 to terminate at any time the
privilege of accepting the offer hereby made.
DREXEL, MORGAN & co.