Book Description

This historic book may have numerous typos and missing text. Purchasers can usually download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1915 edition. Excerpt: ...its Michigan Central collateral bonds for $19,336,000 issued in payment for 90 per cent of Michigan Central stock at $114 per share; its debenture bonds for $48,000,000; and debenture bonds for $9,188,000. The collateral bonds bore interest at 3% per cent; the debenture bonds at 4 per cent. Par value of the stock purchased was $100 a share. The L. S, Ry. collaterals are secured by pledge of the L. S. Ry. stock and the M. C. R. R, collaterals by pledge of M. C. R. R. stock. None of the bonds were secured bv mortgage, but the N. Y. C. R. R. was bound to secure them in any future mortgage placed on its property, and also not to consolidate the L. S. Ry. with the N. Y. C. R. R. without the consent of threefourths of the holders of L. S. Ry, coliaterals_ nor to vote L. S. Ry, stock for any increase in L, S. Ry. capital stock, which is $50,000,000. Similar covenants were contained in the lndenture under which the N. Y. C.'s M. C. R. R. collaterals were issued. TheN. Y. C. R. R. extends New York to Buffalo, and the L. S. Ry. from Buffalo to Chicago, and the former desires to consolidate the two in the interest of through traflic and to secure simplicity and strength in financing the The $167,102,400 of bonds referred to in the Senate resolution is included in the $291,211,400 of N. Y. C. R. R. bonds. The N. Y. C. R. R. proposes to provide for the issuance or consolidation of bonds, 5e"l'ed by mortgage on the combined i11'0Derties, to-refund the bonded debt of the two companies and for future capital needs of the consolidated company. It is Proposed to secure the $167,102,400 by mortgage on the property of the N. Y. C. R. R., and on consolidation, by mortBase on the property of the L. S. Ry. The mortgage restricts the...