The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-01-30
SsuzuriaI,
TO THE HOLDERS or THE
Second Mortgage 8 per Cent Bonds
OF THE
Staten Island Rapid Transit
Railroad Company:

In consequence OF tho insolvency OF the Baltimore
and Ohio Railroad Company, the undersigned have
been In negotiation with the Baltimore and Ohio Re-
organization Managers, with a view TO the protectors
Of the above bonds.t sFpst'
As a result, the following proposition has been OBJ
tanned, which we deem advantageous for your inter
ests, aud for your prompt acceptance;
The Baltimore and Ohio Reorganization Managers
offer to procure An agreement from the baltimore
and Ohio Railroad Company las ReorgAniSed) to
purchase your bonds at par and interest in cash, in
i've years, and In the meantime 20 guarantee inter
est thereon at four cent. per annum. which IN to be
accepted by the holders In full OF such interest. In
consideration thereof. the baltimore and Ohio RAil.
road Company us Reorganiged, IL to have the right
to purchase your bonds at any time within such ave
years, at par and interest, in cash. upon thirty daya'
notice. The Baltimore anu Ohio Railroad Company
las ReorganiZedl 10 10 agree further that in case, dur.
inu said hvo years, II plan for the reorganization OF
the Staten Island Rapid Transit Railroad Company
shall be Issued by II or with ito approval. IL will &C.
cure for you the option for two weeks after suoh plan
is publicly issued to take the new securities thereby
provided. 81 lien o: the cash price Of par and interest
for your bonds na above stated. Vi
In case. however, the mortgage securing your
bonds should I've foreclosed, new four per cent.
bonds 10 the same amount shall be created TO be So
cured 10y mortgage having the same lien upon the
same property. and the agreement OF the Bsltimor 70
and Ohio Railroad Company hs Rcorganized) shaly
apply equally to such new bonds.
The agreement will not become effective unless all
| the bonds, or such lesser amount US the Baltimore
and Ohio Reorganization Managers shall approve,
ascent thereto and have thoir bonds stamped ae-
cordingly. Upon the agreement thus becoming
operative the overdue coupons will be paid In cashs
| az stated below.
Under your Bondholdcrs' Agreement Of July &C.
| 1928, II is provided that IL. at any time after defaplt
in interest, there should arise All opportunity, con-
sIlcred favorable by us, for arrangement and ssttle-
! ...... - .l.a t.t,r. ,,s,, ,I. ln.nalNnl And
coupons. then with tho assent tn 10 manifested by
express approval or by failure within four weeks ~
express dissent Of the holders OF our certificates OF
deposit representing seventy .hve per cent. iu
amount Of the deposited bonds, VIC may make such
arrangement and settlement. .
The foregoing proposition presents All opportunity
for a settlement and arrangement OF your claims
which we deem favorable. We request. therefore.
your assent thereto in writing. Unless within four
weeks from the date of mailing this notice to you
YOU notify Ia Of your dissent, We shall presume coi,-
clusivclv that you have assentcd to the proposed
arrangement and to the stamping OF Your bonds ~
asserting thereto as above set forth. and to the tax
ing of such steps on our part as we deem necessary
to carry the same into effect, either by declaring the
principal of your bonds duc oc by causing proceed
irg' to he instituted for the foreclosure OF the mort
gage or otherwise, az We may be advised.
Your bonds. or the new bonds issued in lien
thereof, will accordingly he so stamped by us IL the
holders Of our certificates OF deposit. representing
seventy five per cent. in amount OF the deposited
bonds. shall assent, either i'll writin. or by failure
to notify us OF tlrir dissent, and the same shall be-
come operative by the assent of the requisite
amount of outstanding bonds as above stated.
So soon as tho agreement shall be declared chec-
tive. the deposited bonds will be stamped at ths
office OF the Central Trust Company of New York.
and returned to the dcpOsitor- upon surrender ot
our certificates of deposit therefor, unless the mort"
rage securing Your bonds shall be fLreclosed, ii
which case the rev bonds. stamped az above pro-
yidcd. will he delivered inlicu of the existing bonds.
Al III time Of such delivery Of the existing bonds or
new bonds. the overdue Interest on the bonds, repre-.
scented by our certificates of deposit, will he paid in
cash. at its face value. with interest.
In ease the agreement shall not become operative.
the deposited bonds will not he stamped, but We will
continue to hold the same under the bondholders'
agr, emcnt OF July ., 1898.
All but 81, 200 Of the bonds Of the total issue Of
81, 800. 600 have been deposited.
Dated New York, January 2Ith, lspa.
HAILCARTEN & CO.,
- ST.. y. y,
Representing Staten Island Rapid Transit I'd Mort
gage Bondholdors.