The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1885-08-22
% WALL STREET,
NEW YORK July %, 1855
To The First Mortgage BondloldeT Of The
NEW YORK, WEST SHORE And BUFFALO
RAILWAY COMPANY:
% WALL STREET,
NEW YORK. J,

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 kailroaa
of the latter Company and working such Railroad In
harmony with its own system, 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 one of them who may now elect shall
have equal opportunity to share with US the benefit OF
our contract hereinafter mentioned and with the view
also of promoting unanimity and speedy terrnna'
ton of pending difficulties.
The New York Central and Hudson River Railroad
Company has executed a contract with agreeing
upon q 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 are 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 reor
gained Company shall be limited to- 700 0OO, OOO
four per cent. Mortgage Bonds, and $40, 600 Ooo
Capital Stock bonds be dated January l. 1886,
ana to at the expiration of the lease, say In
four hundred and seventy-tve years upon default
in navme,t of interest for two consecutive wears.
shall be offered in exchange for the 700 Ooo,oOO
First Mortgage Bonds of the present Company, with
past due coupons attachedcthat IS to say 81 Oh
the guaranteed bonds for $2, 600 OF the old.
THIRD--Ihat the remaining 20, OOO,0 600 except
such may be necessary for reorganization,
shall be issued except the request of the New
York Central and Hudson River Railroad Company.
to provide for prior liens, necessary terminals ana
such other property and for such other purposes as
the Directors of the New York Central and Hudson
River Railroad Company may from time to time think
necessary for the security development and operation
of the property leased.
FoURTIi-That the Capital Stock of the reorganized
Company shall be surrendered to the New York Cen
trail and Hudson River'Rairoad Company as consid-
GRAFTON for its lease and guaranty.
FIFTH-That the leased property shall be delivered
prior to January L, 1856.
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 u.s.
with the agreement hereto attached duly executed oy
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 whosk
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 assented
the proposed plan. Upon receiving the assent of
majority i'll amount of the present West Shore bonds
immediate steps will be taken which, 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 s. co.