The morning journal-courier., 1908-04-09
HARTMAN MEETS
ERIE OBLIGATIONS
Offer to Purchase $5,50O,000
New Six Per Cents. to Pay
Maturing Notes is
Accepted,
TERMS OF SETTLEMENT
Holders of Maturing Notes May be
Paid Par In Cash or Have Op-
tion Of Taking New Six
Fer Cent. Notes.

New York, April S,--Followlng an
offer OF Edward H. Hartman to furn-
ish the funds to meet the OBLIGATIONS
Of the Erie notes, j. p. Morgan & Co.
announced late to-day that the hold
ers of the Erie notes amounting to
$5,600,000 which matured to-day
would either be paid par in cash for
| their notes or given the option Of talk
ing new thrceycar per cent. note
and . per cent of the new notes in
cash. The offer of Mr. Hartman was
accepted by the board of directors of
the railroad to-day. What proportion
Of the maturing notes will be paid in
cash has not been made public.
Mr. Harrman's proposition was set
forth in the following communication
to the Erie directors:
For the purpose Of enabling your
company to-day It's S5,5O0,O0O notes
maturing this day | offer to purchase
$500, 600 of new per cent colater-
al trust gold notes payable April Sth,
! 1911, authorized by your board, at the
price Of % cents on the dollar, such
| price to be paid by me when and
as, but only when and as, the same
shall be required for, and be applied
to the payment of such $500, 900
notes maturing to-day, and in consld-
Grafton of the receipt of the new 6
per cent collateral gold notes, se-
cured as heretofore proposed, the
notes and indenture to he substantial
ly as considered and approved by my
counsel.
Immediately upon your accept
ance of this offer, you are to cause an
nouncement to he made to the holders
OF your said notes maturing to-day
that they may receive payment there
Of at par In cash; or, until and In
cluding Wednesday. April 18TH at
their option, they will haze the priv
ilege of receiving for their present
notes at par. new 6 per cent. collateral
trust notes at par and also cash to
the amount Of per cent. OF the new
notes less the interest accrued there
on. You may cause such payments
and deliveries to them to he made out
Of the cash to be provided or out of
the new notes TO be received by me
under this offer and its acceptance
yours truly,
"E. n. HARTMAN.
april s. 1908"
Tho board Of directors ~ tho Eric
Railroad company held n meeting upon
the receipt Of Mr. Harlman's offer. and
addressed to him the following accept.
ance
E II. Hartman, ESQ, CT.
Dear Sir:-At n meeting NJ Tho
board of directors Of the Erie Railroa,
company held this day your offer o
this date 10 purchase s5,5O0,OOO of Tn,
now six per cent. collateral trust note,
Of tho Eric Railroad company PAYABLE
April 3, 1911, TO enable the compan,
to provide for the payment of rs s5
5OO.Ol6 notes payable nj this date. wa,
accepted upon the terms of your offer
and this board has authorized Messrs
j. p. Morgan & Co. 20 receive and holc
and deliver notes, cash and collatera
for the purposes OF your offer and thl
acceptance.
BY order Of the board Of directors.
; Yours very truly,
(Slgned) r. y UNDERWOOD,
President
april 8, 1903
J. f. Morgan & Co. was directed l.
make the nayment under the plan pro
: posed and the announcement that th
J maturing obligations would be me
? was made by the banking firm lat
5 to-day. The Erie Railroad company
letter to j p. Morgan & Co. Is as fol
lows;
"Messrs. j. = Morgan & Co
n Dear Sirs-The Erie Railroad CT
a herewith hands you an offer of thi
: date from E, II. Hartman, ESQ. an
9 the acceptance thereof by this boar
G and authorizes you to make all the de
o liverles and payments mentioned o
u proposed 10 be made by or In behalf o
u this company under the said offer an
acceptance
This company also has delivered |
you and you will receive ard hold (
trust FOR tho contamination of this ar
rangcmcnt the collatcrals Intended a
. security for said now six per cont. col
Q lateral trust notes.
g ERIE RAILROAD co,
"By IT, y. Underwood, President.
! April s, 1908"
y The announcement Of j. p Morgan
j Co. follows:
Referring to the above correspond
u ence we are now prepared to pay t
a any noteholder presenting notes Q
j. our receipts for notes already depostc,
e par for the said notes or at the optic
Of the holder until and including Apr
II IL, 19CS, to deliver a now three year 81
,,e per cent. note and five per cent IN cas-
n less accrued interest on tho note.
d Pending the preparation Of tho NO
notes temporary certificates viii be Is
:, sued,
IS u. +. MORGAN g. CO."
. rn inrkITjrN NrHhEnn