New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1885-07-28
TRUNK LINE PEACE.
CENTRAL ACQUIRES THE WEST SHORE
TERMS OF THE AUGMENTATION ACCEPTANCE
IN WALL STREET.


IN WALL STREET.
| The first official announcement In connect;oo
with the settlement Of the differences betwesn tho
trunk line railroads was made by Drexel Morgan Co
yesterday In cireuIarleter tho first mortgage ond
holders Of the New.York West Shore and Buffalo Rail.
way Company. Tho terms Of the general agrcemeus
were given in THE TRIBUNE week ago In an interview
with william II. Vanderbilt at Saratoga Tho notice Of
Drexe Morgan Co. refers only to the reorganization
OF the west Shore Company and Its acquisition by the
New-fork Central IL is understood that tho
other provisions about the abandonment of the South
Pennsylvania aud other enterprises Pennsylvania By
Mr. Vanderbilt will be carried with equal success.
In regard to the West Shore s certain that tho assent
OK nearly majority of the bonds has already virtually
been obtained and that the control of the North River
Construction Company and Of the terminal bonds has
been acquired The receivers certificates OF will
be paid In full but other claims against property
will be settled ct about SO cents to the dollar.
The proceedings In tho foreclosure suit now
pending at Newburg will be hasteued that tho
antagonism Of the construction company and other
creditor interests has been removed expected that
the proceedings will be pressed with great vgor and
that sale Of the property for cash in which
ing bondhoders will be entitled pro.rata participation
will be ordered by the Nothing has yet
done toward restoration Of rates. freight and passenger
the lines, will speedily follow reorgan-
zatiOn Of the road The circular letter of Drexe,
Morgan & Co. Is as follows:
No. 90 wALLs1:, NEW: WORK, July 25. 1885.
ws es shore e fs aa sSa saax 81 ne
Being that the interests OF the New.York
the bondholders Of the New York. West Buf.
fao Railway Company, would be best promoted by the
la ter company and working railroad in harmony
with its own system we opened negotatons to secure
which we are prepared to lay the following proposal be.
fore the bondioldsrs Of the West Shore Company in
,' tls Ds%eas s q our cOu,rsss Ssrsnaissr men:
and speedy termination Of pending difficulties. Tho
NewY York Central and Hudson River Railroad Company
ganization Of the New.York. West shore aud Buffalo
Railway Company to take OF ahe PROPERTY os
the principal aud interest Of the bonds hereinafter men,
property The conditions Of the contract
First That the securities be issued by the reorgan.
cent mortgage bonds and capital stock tho
bonds be dated January 1886, aud TO mature at the
in payment OF interest for two consecutive years
Second That Of the mortgage bonds s25 900 600 shall
ssSss ne"
Third. That the remaining $4,000. 900, except such
amount as may be necessary for reorsaniza,on liza ,na
Central and Hudson River Railroad Company to provide
epI n for otSer as the directors q tho
New-York Central and Hudson River Railroad Company
development and operation of the property leased:
Fourih ptal stock of the ieorganized com.
pany shall he surrendered to the New-York Central ana
Hudson River Railroad Company consideration for
Fn That the leased property shall delivered prior
We therefore offer the First MORTGAGE Bonaholdets
OF the West Shore Company the opportunity 70 avai
themselves OF agreement with the New-York Cenra
and Hudson River Railroad Company upon the foiio"
First That their bonds shall be deposited with Us
with the agreement hereto attached duly executed W
second That at least majority of the whole issue
Pending the deposit Of such majority temporary re.
ceipts will be given for the bonds. After majority
changed for engraved receipts, negotiable In form.
by n. the bond. EnSl @ e%su aS
by for purposes OF reorganization In case nyoty
snail not oe ana adsr IKE with tho
New York Central and Hudson River Railroad Company
reedsr ee ISo OF the duly assigned It right that
should add that very large proportion OF the oonas
upon receiving the assent OF majority in amount OF
the present West shore bonds immediate steps WIN 10
ganizaton and prevent further depreciation aud wase
The rght is reserved to terminate at any time tho
DRExEL, MORGAN Co.
The announcement caused little excitement in Wall
Street. although the circulars In brisk demand after
the close OF business at the Stock Exchange The gem
era sentiment among the large bondhoders OF the wese
Shore was one OF satisfaction with the which were
considered liberal Nodoubt OF the success OF the scheme
was expressed by persons most closely dchtineu
with the West Shore Railway. member of the firm Ok
winsow Lanier & Co., which was conspcuously active
In placing bonds said in response TO the inquiries OK
o TRIBUNE reporter:
II our opinion that it is for the best interest OF tho
West Shore bondholders to accept the oner now mado
on account of the New-Y0rk Central Company IS
quite certain that IL Is not possible Tor the west
long TO continue contest The strike OF oo
men the companys shops at Utica ON saturday SIM
ply that the company has not the money anu me
receiver cannot obtain by the issue OF certincaes az
par TO continue to the road at heavy loss re-
organization on entirely independent basis would me-
csstate continuance OF the present disastrous conpc-
titiou with possible income TO bondhoders Tor long
ncriod and the certainty further large amount oe
money must furnished either by present bondhoders
or new Investors to take up the existing receivers cer'
tfcaes and protect and complete the property De
fore any bond upon the line can be createds
and IL would reasonable to expect new investors
to come during the continuanceo OF absolutely anpron
able those have decided 10 cx.
change our own Shore bonds and all under our con-
troll on the proposed and we have accepted the
offer accordingly.
STATE OF THE UNION PACIFIC.