The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1885-08-07
FINANCIAL.
% WALL STREET
NEW YORK, July 25, 1885
To the First Mortgage BoldholeH Of tho
new YORK, WEST SHORE And BUFFALO
RAILWAY COMPANY:
% WALL STREET.
NEW YORK n


Being convinced that the interests of the New York
Central and Hudson River Railroad Company and of
the Bondholdors 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
are prepared to lay the following proposal before the
Bondholders of the West Shore Company, in order
that each one of them who may now so elect shall
have equal opportunity TO share with the benefit of
our contract hereinafter mentioned, and with the view
also Of prornoin1 ,,n.n;4ity aud speedy ternina-
ton of pending diff 3ulties
The New York Central and Hudson River Railroad
Company has executed contract with US agreeing,
;,r,, a reorganization of the New York. West Shore
and Buffalo Railway company to take possession OF
the property of the reorganized Company under
lease and to 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:
FIRsrThat the securities to be issued by the reor-
ganized Company shall be limited to 500 900 600
four per cent. Mortgage Bonds and $40 900 900
Capital Stock the bonds to be datedJ anuary l. 1886
and to mature at the expiration of the lease say in
four hundred and seventyive years, or upon default
in payment OF interest Cor two consecutive years.
SECOND-That of the Mortgage Bonds S25, 600 600
shall be offered in exchange for $50 100000
First Mort gage Bonds of the present Company with
past due coupons attachedthat is say, ~ 900 OF
TH g the 0p rema mi 900 900 except
such amount may he 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
the Directors Of the New York Central and Hudson
Railroad ms fTOln irne TO
necessary for the security development and operation
Of the property leased.
Company shall be surrendered to the New York Gem
trail and Hudson River Railroad Company as a consid
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 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 ajority 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 III FORM
countersgned by the Union Trust Company, in whose
custody the bonds viii remain until required by for
purposes of reorganization.
In a majority shall not be secured and a
ganizaton perfected within the time required under
the contract with the New York Central and Hudson
River Railroad Company the bonds will DO 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 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.
DREHEL, MORGAN s. co.