New-York tribune., 1894-01-02
New.York, Lake Erie and Western
Railroad Company:

,,-..o.s ,ove ro~stofo-, pointed on, ia Tho annual
, lo. ,h,, while your Company il necessarily Obliged
,b wear TO- make considerable 'N'''-.'' . -
-o.c,tlon Of property and deN'l"'i'''.' VI |
,,,.,o, facilities the basis on when '' company ~
P0,., ,esves it entirely without the power to raise
80, for such expenditures. Some ie" "'S' "'' ' 10y
- tot, the treasury OF the Company rom ''l' !" "'
- r.e disposed Of and their proceeds h"Ne zee" "sn
have ' n. u,,,1 go: but receipts from this source
% - course feen totally insufficient ana ''r "''
a,son YOUR Company for some N'"S l ,, -
- With n constantly Increasing noatnF "e" 10"
amounting to nearly S''V'''OV'
Of Car Trus, Obligations ~ . 49,, ,..,,-,ry.s
The terms and peculiar conditions "' "r -,
eo,ona Consolidated Mortgage have HN"'''f
~ r,,,onv from securing ine h'''s'''' - "
~ ,r.~ore security and it has been i"'in"fed "
.ou in the annual reports that his ia'' was ''""" ~
- ,,horrassu1cnt upon IN" coil"l"'" "' ''.'''
,rc, tho interests of the Second Mortgage D'anh'"'
The financial conditions of "a" past SUNNI '''
'.,,,, e,,,tou and n,cossiated the placing OF me
,.o,nn,nv under the protection 81 i''''' sup |
-, 1.nri,el Of any means for ordinary nctterrn'nt
l,ures and 10 meet maturing car trust "o!sh'o"S'
- o,lral - adopt the course which the company
.. 70 IN possession of its property woul Hou""vS'
h,,a adopted by seeking relief through u''aut III '
o,, of interest on the Second Consolidated Ni'''6"se
bonds. &c., ,. o-,,...,,a ,he
c,noranv were contemplated as p'ssioiHF az ''' '
=. ,ho REORGANIZATION ISIS, when the second '''.o'
s,oa Mortgage was created. ard. with TINS IN i"N',
as ,,se-t.d in said mortgage to the effect ihat
NJ foreclosure rights should accrue 10 the oo"'h
rrcss ,he Company should default in the payment % S
successive coupons This peculiar provision mas 81 All
times deprived the Second Mortgage bonds 'i We '',
.o,or tho, would be entitled TO under ofi nary 'r-
cyostances and II the legitimate requirements "' 'e ~
pany had properly provided for
The necessity OF securing construction fuhoS I"
.,,,i,g T., interes. obligations Is Of course. dlscH'4i
able to the Company AMI disastrous to its Se'on' '
rare bondhoders and the possibility OF lis fe'A''
any time is a constant menace TO the latter '"''
are
almost a matter Of necessity
1t is therefore. the unanimous opinion oi your D'''
and also the various resentatives oi 'N' S'''
holders with whom they have consulted tha' sue"
chances should be brought about will ohViaie the "N-
isting With this end in view 1t IS if'iei
10 create a mortgage having 100 years TO i""' "
Ing interest per icent. into which the present
Second Consolidated Mortgage and certain oher "o'1S
are 70 be exchanged, forth below; the new mort
gare TO require prompt payment Of all coupons IN 'S'
and to give ADEQUATE foreclosure rights case Of any
default The amount Of the mortgage VIII eh'"'e
,bs Con,pany 70 use certain yearly in taking up
the existing Trusts and in making additions 20 'e
prorery essential part Of the scheme the present
floating also be provided for
on the basis indicated mortgage OF 'his cla'lo''
can be made present increasing the hNei
charges Of Company and would. therefore, be wen
within the earning capacity Of the properly 's
legitimate construction requirements are fairly provided
TIE hew mortgage will cover the property OF the New
York. Lake Erie and Western Raiiroad COMPANY III
Guiding its loasehoId NeYork Pennsylvania and
Ohio Railway and the capital stock OF the Chicago and
Erie thus giving III control Of the
entire line 10 Chicago: and Will secure bonds limited in
amount S1O0tOOO bearing interest at per cent per
annum from December 1888. principal and Interest
payable coin Of the present STANDARD OF weight
and nneness bonds 10 be used only as follows
s33.59,.4OO acquire the present Second Con7oli-
dated Mortgage bonds. Chs embraces ;he bonds
known as ''New Second Consolidated Mortgage and
Second Consolidated Mortgage Funded Coupon
bondsJ at par conditioned on each dcposi,or of such
bonds subscribing and paying In cash az 80 per cent
and interest for additional bonds of the new issue
in the proportion $1,000 new bonds for each $40
Second Consolidated bonds deposited
On Consolidated Mortgage bonds deposited hcre-
under. the due December 1st. 1893 VIII lie
allowed for in cash simultaneously with the delivery
of the new bonds
s4,O3i.sO0to acquire the present Funded Coupon
bonds Of 1885, at par conditioned each depositor
of such bonds subscribing and paying In cash at 90
re- cent and interest for additional bonds
new issue in the proportion Of $1,000 new bond FOR
each $4,000 Funded Coupon bonds deposited.
saoS ooS 70 oco,,re the present Income bonds a, par
conditioned on each dcpositor Of such bonds sutscrib
ing and paying cash at 30 per cent ana interest
additional bonds Of the new issue to an amount
equal ~ the Income bonds deposited
s99I5sos for subscription by depostors of Second
Consolidated Mortgage bonds, Funded Coupon and
Income bonds. above
s6J12SOO 20 be reserved 20 acquire. or provide for
the present Reorganization First Lien bonds and
Collateral Trust bonds such basis as the new
mortgage shall provide.
SIjd351Si 20 be specifically apart and used under
proper restrictions only for construction equipment
acquisition Of property and bet'ernents. to
an extent exceeding 100000 in any one year.
excep. said reserved bonds be further used
in any year the extent Of 100000. II necessary.
order 70 acquire existing car trust liens
The Second Consolidated Funded Coupon bonds %
1856 will when acquired be kept alive and deposited with
be held. long be deemed neces-
sary. for the protection OF the bonds.
Drexel. Morgan d Coz of NewYOrk. ana Messrs
Co.. Of London have agreed assist the
Directors in carrying the above scheme. and 10 attend
details the reorganzatlon-they 10
have authority plan operative Whenever in
their judgment sufficient Of the several issues
affected thereby shall been deposited wit.
them their circular date herewith.
THE XEw-yoRK. LAKE ERIE AND WESTERN RAIL
ROAD COMPANY
by
John King. George W. Quintard.
John C. McColougi. William L. Strong
Ogden Mis-. william Whitewright
:. Lowber Welsh. CJriiandt Parker.
Abrani s. Hewitt Jamcs J. Goodwin.
Alexander L. Or. William Libbey.
William a. Whee;o>F William " Glchrist.
Morris x. Jcsup. LIEN y. Thomas
Henry II. Cook.
Board Of Directors.
NEv-YoRK and LONDON January 81. 1894
To the Holders Of the
NEW-YORK. LAKE ERIE AND
WESTERN RIIIRO1D