New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1886-11-24
{iuaunal.
ATLANTIC AND PACIFIC RAILROAD COMPANY.
81 MILK.sT.

81 MILK.sT.
boston, Oct 90 1888.
The holders OF this compznys bonds known iis West
ern Division Sc due 1870 and Of its Central Division
os que 1922 are hereby informed they exchange those
oonns OF each class for for par OF new
-Four ~ Per Cent Guaranteed Gold Bonds Of this
Company.
The bonds to he dated jan 1887 SO
70 Dear interest At the Per Cent snnum
psyaoe annually January and July and TO be guar
ranesd BY nderssmsn upon each bond for due payment Of
Prhp AND interest BY Achson Topeka and Santa re
roAd Company the s. Lous and San Francsoo RAN
company TO the onehaf by each company aae
e =" 10 secured by the deposit trust by such two com
pa"' win The Mercantile Trust Company OF New York OF
INC oOh' Tor which the boads to 10 gwen In ef'
change.
Inc necessity for making proposal the bvndhoders
hAS onr recevcd the confederation Of the three COM
pahes and now urgent The advlsaby Of lis acceptance
on the part OF the bosdhodsrs evident from the foL
lowing rtatrments:
Notwithstanding the establishments Of through trans
continental line over the Atlantic and Pacific Railroad Do
tween the ss,sppi I'D Missouri and ths Pacific
Coast oy contract with Southern Pacific Railroad Company
and also By thecOmpetOn of the california Southern Rail-
roao 70 connection with Atlantic and PACING road the
Expectations entertained OF the inception OF the
enterprise have not been realized satisfactory degree
'uhed This has been which could not DO
fOre'een Delays occurred while the cost er
ceedeh careful estimates general depression In business has
active low rates have
prevailed and, the result OF ALL the earnings OF the Az
insufficient to met its nIed charges although the ineres
upon It's bonds has been aulariy paid The funds for ths
purpose aud q the otLe hxed charges OF this
company have been from to tins advanced By the
Atchson Topeka and Fe and the ~ Lous and San
Francisco companies Of their respective In
srests in the their confidence in the ultimate
success OF ts railroad The obligations those com
panles 10 paw Of Atlantic and
Psee Loads issued advance to the extent OF ONLY
70 per cent of tbs earnings derive them ron the
busness passing their and coming from
OF gong 10 the road OF tho Atlantic and Pacific Company ana
made only loans which are 10 Do repaid
VIII interest In oder MAINTAIN the sovency OF the
Ausnbc and Pacific Company. AMI IN the hope OF better
results In the AtchIsOn AMI san trsnclsco
companies have aredy advanced largely In excess
OF er obligations under traffic contracts; but the tine
mas come when such assistance be no longer expected
aud the two companies have notice that viii not be
continn'd. They have however cad that tho new
basis proposed each will absolutely guarantee The
payment OF oneaf of the Principal and interest at per
cent OF the Company existing uorgs-e Indebtedness the
uo1dhoders Will such and In consideration
thereof exchange the ponds Of this
Thr plan has already aud approved by
many holders OF the bonds AMI IN large amounts ts success
s contingent before Drcem ~ 1856
OF the holders " majority interest II such assent Is not
ooand by that time be that the plan Is not
acceptable 10 the bon holers option Of either CON-
pany NAV be alb an "ned In that event cannot be expo
that other plan presented advantageous 20 the
oondhoiers as that prspo-e thai other way
can they 20 erectusly protect th'r interests
INC Cent Bonds. guar1uteeh as " pilDrDh
and interest and with all tho advantages stated ought TO 10
highly regarded Investment command
krt value equal or To that Of the mos approved
securities vi Ike
BY the deposit In the existing mortgage bonds 20 the
extent that they exchanged the security Of the lien Of the
present mortgages Will continue for the
benefit ~ the hOl o c new bon
The Mercantile Trust Company New-york. VIII he tho
Trustee under the three
nfs 10 securs the bon H. each Of which wi" 10 aa
thcncaied by It and ,opy OF the may Ds there
The said Trust Company Al New-YOrk- and
messrA seIgasn -tettheimer. Frank urto-M.
Wurttemberci-che vereinsbsnk stuttgart
Rheinscho Crr,iItDank, Man i'm.
Fiale der Rheini srhen Credit ank, karlsruhe,
F.ale der Rheinische1 Cretitbank. Heidelberg.
Fisle der Z irin schen Creiitbank. Contain.
Filsle der hnrinischen Creiitbank. Frslb lrgLB..
AlsberE 60 dberg q CO.. Am-tertan.
viii be prepared holders Of the present boLis
tie deposit Of the with al coupons attached TO be er
changed slated the MERCANTILE TRUST COM
PANY OF NETWORK. c>sRS. RGDDER PEABODY
a o.. OF BOSTON and the Frankurter Bank. at Frank
fur-o ~. give Temporary receipts which Will be ex
changeable for bonds ready.
For each deposited they will also
give $50 cash and for e'ch Central D
vision 80 cash as aud for interest an one OF
s-d new Guaranteed Bonds bearing interest rom Jan
Iss7 The have annexed. but
vsou ia for their and at the
exchange they ready delivery receipts
will be ssusd emitting the holder 70 the bonds
as soon A they be du prepared.
Applications will be have the Guaranteed Trust
Gold Bonds placed on the regular OF the NewYork
Exchange admitted dealings ~ tho Exchanges
abroad.
BY order Board.
Fl. c. MUTT. Presdent
Approved
EDWARD F. WINSLOW. President
St. LOUIS and "a franchise Hallway Company.
Approved.
WILLIAM B. STRONG. President
Atchison Topeka aud santa Fe RAT road Company