University of Virginia Library

NEW YORK & HARLEM RAILWAY STOCK TO BE EXCHANGED FOR BONDS:

The President read a letter from Rayford W. Alley, the attorney who is representing the
University in the case of New York Central vs. Harlem Railway, et al, advising that the New York
Central proposed that bonds of the Harlem Railway be issued in the face amount of $1250.00 for
each ten shares of New York & Harlem Ry. Co. $50.00 Preferred stock, the bonds to be guaranteed
by the New York Central Railway Co., to mature in 100 years and to bear interest at 4%. These
bonds to be secured by second mortgage on all the property of Harlem Railway Co, including
franchises, etc., subject only to the lien of a first mortgage of $12,000,000.00 on these
properties. Said properties, a conservative value of between $150,000,000.00 and $200,000,000.00,
so it would seem that these second mortgage bonds would be well secured.

On motion, the President was authorized to accept the exchange of the second mortgage
4% 100 year bonds for the 771 shares of preferred stock.

The meeting then adjourned.