We note the terms of the appointment and the arrangement for advances to be made if necessary, and have great pleasure in accepting the appointment on the terms stated. Yours, very truly, W. C. BROWN, Esq., J. P. MORGAN & Co. FEBRUARY 2, 1911. President New York Central & Hudson River Railroad Co., Grand Central Terminal, City. DEAR SIR: The vote of the board of directors of your company on the 16th day of December, 1908, whereby we were appointed sole agents of your company to act for it whenever it requires the services of bankers to dispose of its securities, provides that our commission on the sale thereof shall be such as may be agreed upon by us and your finance committee. We are inclined to think it would be more satisfactory, both to your company and ourselves, that a general rule be established to cover this question. We therefore propose that it be agreed that our commission on such sales shall be 14 per cent on the par value of all such securities; provided that in the case of a security having less than six years to run, then the commission shall be at the rate of one-quarter of 1 per cent for each year of the life of the security. We also beg to confirm what we understand our Mr. Morgan has heretofore stated, that the provision in the said resolution for the advance to your company, upon securities offered to the public as collateral, up to 75 per cent of said offered price, should read "up to 90 per cent of said offered price." Furthermore, we beg to say that we are quite willing that said resolution be further amended so as to provide that if there shall be a failure on the part of your finance committee and ourselves to agree upon the price at which any particular security shall be offered to the public, then the agreement shall not apply to such security. The acceptance of this proposition by your board will constitute an amendment or modification of the terms of said resolution. Yours, very truly, J. P. MORGAN & Co. Same letter to Lake Shore & Michigan Southern Railway Co., Michigan Central Railroad Co., and Cleveland, Cincinnati, Chicago & St. Louis Railway Co. [Additional exhibits will be found in Part 16 of these hearings.] |