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To Buy The A. A. & Y. Road

To Buy The A. A. & Y. Road image
Parent Issue
Public Domain
OCR Text

J. R. McDonald, of Detroit, is the name and address of a gentleman who would ruuch like to get control of the Ann Arbor and Ypsilanti motor line. On July 31 last he presen ted the f ollowing conditions for an option ou the road : Yisilanti, Mich., July 13, 1895. To the stock and bond holders of the Anu Arbor and Ypsilanti street railway company : 1 hereby submit the folowing proposition for re-organization : 1. The deposit of all outstanding bonds with a trastee to be paid for as follows, viz. : 80 cents on the dollar in cash out of the proceeds of the new issue of bonds, or exehanged for new bonds at par value, at the option of the bondholder. 2. All tbe stock to be surreudered to the trustee for the bondholders. 3. The purchase of the water power at Geddes. -1. The railway to be converted into an electric systein, and equipped with all modern improved machinery. 5. The Geddes water power to be used to genérate electricity for motive power. 6. The road to be extended into Anu Arbor as far as the court house, via the University, if possible. 7. The entire railway property, both personal and real, to be bonded for a suru not to exceed $20,000 per mile, said bonds to be gold bonds, rnnning not more than 30 years,with interest at 5 per cent, payable serui-annually. 8. I, or the new company, to pay all the floating debt of the present company. 9. I to have flve inonths from this date to carry out the provisions of the foregoing propositiou.if aocepted by all parties concerne 1. J. R. McDonald. At a meeting of the direotors of the road on rhe same da? , the followiug resolutions vere tmanimously passed : "That the optioii for the sale of the A. A. & Y. street raihvay company be given J. R. McDoDald, and that it be accepted by this board, aud we hereby recommend its approval by the stookholders aud bondholders of said road." It was moved aud snpported that .E. W. Hemphill be appointed trustee for the custody of the stock and bouds to be delivered to him, he giving a rceipt iherefor. Since the above actiou was takeu matters have slowly progressed, uulil Mr. IoDonald bas gotten uearly all of the bouds in the hands of the trustee. As to what Mr. McDonald, whorepresents eastern capitalists, will do with the road, the above is self explanatory, First of all, it would be euuipped with electricity, the power for which would be gotten froui the Geddes dam. Mr. McDonald has another large idea, ru connection with the water power. It is nothiug less than to get it from Znkey lake, or some of the lakes in the viciuity for surplus supply when the river might fail to meet requireoients Mr. MoDouald was in the city a short time yesterday and was seen by the Argus. The bonds aie now in the hands of the trustee, with the exception of about $S,000 worth. A certain gentlenuui asSüd the projector yesterday if he would take $5,000 for his option. Mr. McDonald said no, he would not take $10,000 for it. Concerning clause 2 of the opti u there is this to be said. Some of the stockholders say that they saw no indncement for them to hand over their stock. It would simply be giving it away. so far as they conld sec. ( )ue of the clivectors of the road said yesterday thV such was the case, that the sfeookhoMers woiild have to act for the good of vhe comm uu i tv . "Bat," said he, "thp'.e is nothiug in it for them if taey keej1 the stock, and the stock cosí them notjiing in the first place."


Ann Arbor Argus
Old News