Page:Federal Reporter, 1st Series, Volume 2.djvu/307

300 including the past-due coupons, which pass with the bonds for this price.

"Upon acceptance of this proposal these bonds shall be deposited in the Mercantile Safe Deposit Company of New York, in the name of trustees, for which the committee proposes the Messrs. J. S. Kennedy and John S. Barnes, chiefs of the firm of J. S. Kennedy & Co. These bonds shall be delivered to the purchasers by the trustees, as agents of the committee, against the payment of the purchase priee in the manner hereinafter named.

"The aforesaid purchase price must be paid within six months af ter the date, -which, by virtue of the last foreclosure decree of each court bas been declared as the day of sale of the bonds, as described in the trust deeds by which the above- named issues of bonds have been respectively secured. The aforenamed purchase priee for said bonds shall bear interest from the twenty-second of December, 1877, at 7 percent, per annum, payable half yearly in gold, in the city of New York. The principal of the above-named purchase price shall be paid — First, either in gold; second, or in first mortgage gold bonds of the newly to be created company, bearing 7 per cent, interest, payablehalf yearly in gold atpar; but the purchasers shall also add toevery bondof $1,000 theamountof $250, in first preferred stock of the new company ; third, or, at the option of the certificate holders, or any of them separately, the same first mortgage gold bonds as described under No. 2, calculated at 90 per cent., but in that case without addition of the preferred stock.

"It is further expressly agreed that on the reorganized road no fm-ther first mortgage shall be issued than the above- named, so that the rate of $12,000 per mile on the completed road shall not be increased.

"As soon as 'bonds' sball be offered in payment the form and contents of the trust deeds must be subjected to the ap- proval of the agents of the committee. The trust deeds must comprise ail property of any and every kind belonging to the new company at the time that the mortgage is created, in-