New-York tribune., 1894-01-06
New.York, Lake Erie and Western
Railroad Company:

ndllIULu OU1upe1A
x ,,ocor. bove heretofore pointed in tho annual
re,or,s that, while yorr Company is necessarily obliged
Zach year mako considerable expenditures '"r ''e
--,ccon Of It's property and development Of its trans
portaton facilities the basis which the company IL
organized leaves it entirely without the power to raise
means for suca expenditures Some f"w assets 'nn' nave
come into the treasury Of the Company from time 70 time
have been disposed their proceeds have been nsed
E, far as they would but receipts from 'h's source
have o. course been totally insufficient and for this
reason your Company for som" years riF' "s 'i
h,irdcncd with n constantly Increasing hoa''S @ u" NV NV
amounting - nearly S'"'""' eNo'"S"' VI '''0'
Of Car Trust obligations
The terms and peculiar conditions Of the COMPANY
Second Consolidated Mortgage have practically pec'"'eu
the Cor1uany securing III" necessary ius nN any
other mortgage security and 1t has been intimate" "
vo, IN .hc annual reports that this fact was liable To
bring embarrassment upon ia" corporation anu s'''
% oc the Interests Of the Mortgage bondhoidcrs
Tn. financial conditions q the past summer c'has'zcd
81. ts,c si.,,ion and stated the PLACING oi the
COMPANY under the protection of r'ceNersHp' Inc
Eereiyers deprived Of means fo' oihhiN '''i"''
exfend,ures aad maturing car trust obligations
lo-c hoe, Obliged adopt u" course when IN" company
i,sct ~ in nofsession ot property. would doubtless
have adopted by seeking relief through default IN mo
r,yncat Of the Second Consolidated "o'Ghse
bonds.
II IS true ,ha, conditions which hav" confronted IN"
co,,,,rv ve-c con,craIl1,ed possibility nt the time
o. the reorganization in lSI>. when The second Oohs"
o.eI ,lortcacc wa created. r'd Win th' IN "H"'
pro, sion inserted In said m"rts"fe 10 ''o W
n, foreclosure rights should - the hoh"h"ideF"
unless the Company shoud default in tho payment '' SIX
successive coupons. This peculiar provision H'' d" "
tirc. derived 9cconi Mo'ag" bonds 81 'hr ''Nc
character they would entitled - under ordinary ''r
c,,,sonccs and II the ,ernai" requirements of the COM
peny hal been property provided for.
Tho necessity ~ securing construction funds ty &C.
faul,nE IN interest obratons Is. of course 's'Ic''
able COMPANY anl disastrous 70 - Second Mort
care iondholcrs ana roesihy ~ Hs recurrence ~
any a consfan, menace 70 the later ou' -
long rs other available. ns recurrence u
amos, n matter q. ncc'ssiry
II h therefore. the unanimous opinion OF your p'feo'''
and u various rcscnia've- o: IN" Tccufy
holders with whom they have consulted that snch
changes should bc trough. about VII ohviar me e'
isny difficulties. vith this end In view. " is p'oi"'e'
TO create mortgage. having c y"af' 20 run boar
Ing interest q, G,c per cent, into which the present
Second Consolidated Mortgage nnI certain ofher o'h''
ar, % c.changei sef forth below. ~" ne" mort
gage 20 require prompt paymen; - al coupons IN cash.
AID to give adequate foreclosure rights In ca" u any
deflui; The amount tho mortgage VIII enable
tho Company certain sum yearly In 'ahi"s up
tho existing Trusts and IN making additions to the
rrogefiy essential pat - the scheme the present
foatlng iclt rrg7i a'rp he provided for
on the ias.- inaicn'ci. mpr'sas" - MS Character
can he made vi'hou, az present Increasing the hN"l
charrcs - tho COMPANY and would. Therefore Dc "e'
within The ca-u-g capacity q tho property " 10
legitimate requirements afe fairly pro''ie'
r nov, r,a,,rrre viii cover property - 'h- Sev
York Ike Erie and wc.te-n Vsyroai Co'r.any, in
Guiding l,s ieaschfid SeN.YOt. Denasylrhna ard
Onto naiwav and capita. Z the 'hicaso anf
F-ie Railroad Company. thus swing u control ~ 'he
entire line Chicago: md wilI secur" MS limited IN
amount o. s7O0pcO bearing Interest ~ per cont p'r
annun, from December If Is'1 principal and nter"st
PAYABLE In gold of tic present standard ~ weight
and nneness The boais 10 DO used only n' follows
s33 597. 500 80 SECURE Tho present Second coa-o'
dated Mortgage bonds. chis embraces the bonds
t,ovn os Sew Second conao;lda,eI Mortgage and
..scooaa Con,oiidatei Mortgage Funded Coupon
IondsJ n, par conionci on each derosi'or ~ such
tonls ,ub.crhlag hnd paving IN oanh ut "' per cert
mad in,eres, for additional bonds q the issue.
IN the proportion ". 1900 new bonds for each $1,000
seconl Consolidated bonds depositei.
On Second Co-soiintei Mortgage bonds deposited here
under tic coupon due Deccmber is,. ise3. VII be
allowed for in cash simultaneously with the delivery
Of tie bonds
s,o7,au0,o acohlr. the prcsen, Fund,d Coupon
bonds ~ 1885, nt par conditioned on each d"posi'or
Of such bonds subscribing and paying In cash at 10
rer cent, and interest for additional bonds of the
new issue IN the proportion Of 1900 new bond for
each $, 800 Funded coupon bonds Deposited
s3Os 90. 20 Mcguire the rrescn, Income bonds At par
c,ndi,ioued on each Getosi,or sunscr.b
ing and paying cash ai 90 per cent and Interest
for additional bonds ~ tho new issue - an amount
.quni 10 the Income bonds Deposited.
s00ij.2OS for subscrpton by c"p'siiors of Second
Consolidated Mortgage bonds. Funded Coupon. ana
Income bonds. as above
s85i. 800 be reserved TO acquire. or provide Or
the presen, Reorganization First Lion bonds and
Collateral Trus; bonds On such basis az the new
mortgage shall provide
s15i3J1sI be specifically ret apart nni used under
propcr restrictions only for construction equipment
tho acquisition Of property and bc,'ermcnis. 20
an extent no, cxccrding 81 10000 In ycnr
.,cop, that said reserved bonds may be- further used
4, o,v yca- 10 the extent u >JD.TDo II necessary
in order 70 acquire sxisng car trust Hens
The Second Consolidated and Funded Coupon bonds o
1855 Will acquired be kept "iive and deposited with
tho Trustee hc held az long as may be deemed ncccs
cary for the protection of the new bonds.
A,cssrs Drcxe Morgan & Coz of N"w-York. md Messrs
& Morgan Goa OF London. have agreed 10 assist the
rcr,ors I'm carving III" nbpc scheme and 10 attend
- the necessary Of the reorganzation-thcy 10
ha. authority declare the plan operative Whenever In
,n.r Judgment suniclcn, of the several
NJ bon1s Infected Thereby shall have been dcpostc1 with
,hem we refer ,he!r circular OF date herewith.
THE NEw-YoRK. LAKE ERIE AND WESTERN RAIL
ROAD COMPANY.
BY
John King. "e''ge W. 0"h'ard'
John g. Mccullough. William T.. Strong.
oc,en Mills William whitewright
J. Iowber welsh Cortlandt Parker
Abram S. Hewitt. James j. "ooawh'
.,exander f. orr. William I.bbey.
William a. wheclock. william " Giichrist.
Morris X Jesup. Epeh H. Ihomas'
Henry II. Cook.
Board OF Directors.
EW-YORK and LONDON. January "a. 1894.
T'O the Holders Of the
YE;V. YORK. LIKE ERIE AND
JYESIERN R1ILROA
COMPANYS
.SccO,,d COHsOiidnfcd WOlfg0Oe