PROSPECTUS OF The Manhattan Beach LMPRü\'EMF.NT CÜMl'AíiY. (LIMITED.) JANUARY 1879. New York ; NATIONAL BANK NOTE CO., TYPE DEPARTMENT. No. 53 BROADWAY. 1SV9. All Co.ii.m u^'ications should be Addressed to 'Ciljc "jlno ")Huiil)attuii 3jcucI) l(uifioui) Cío., No. 61 Bmuadway, jS'hw Vokr. PROSPECTUS FOR THE ORGANIZATION- OF THE MANHATTAN BEACH IMPROVEMENT CO, ÍLIMITED.1 " The New York and M.anliattan Beach Rail¬ way Company" proposes to have continued the improvement of its estate on the Ocean. To enable this to be done, it will convey all this property to a Company to be organized, and to be called " The Manhattan Beach Im- pi'ovement Companv." The Railway Company' will reserve the use of its present tracks and station, with the right to lay such other tracks, and to occupy such additional grounds for stations, as the business of the two Companies may require, and which shall be subject always to the approval of the Boards of Directors of the two Companies. 4 The Improvement Company shall provirle for the issue of stock and bonds as follows; The Stock when issued shall be fnlly paid. The Bonds shall bear V per cent, interest, payable semi-annually, in January and July of each year, and the principal redeemable Jamiaiy 1st, 1910, with the rig'ht to pay off, not to ex¬ ceed $50,000 in any one year, comnioncing January 1, 1884. Bonds to be so paid, shall be drawn by lot, under supervision of the Board, and redeemed at 105 and interest ; unless bids at a less rate can be obtained for their re¬ demption. The principal and interest of these bonds will be guaranteed by the Railway Corn- There shall be set aside, to be paid ox-er to the Raihxuiy Company as hereinafter ])r()vided, in full for its property on the Island not iin- 2yroved, of tlie full paid stock of the Iniproxe- ment Company, $500,000. The Railwa}^ Company has e.xpended on the improved ])ortion of its property for the Hotel and Pavilion with Furniture, and for Dykes, Grading and Walks, &c., !íí:154,000. Stock. Bonds $1,000,000 1,000,000 pany.. 5 The Improvement Company shall pay for th's, ■s;t50,000— In Stock è50,000 Cash, Marek 1, 1879 100,000 " on or before Jan'y 1, 1880, with interest at 7 per cent 100,000 In Bonds, if the Imjirovement Com¬ pany shall so elect 100,000 OôOjOOO And if the Railway Comjiany shall take the last named bonds, they shall be en¬ titled to have the same allotment of Stock as is made to other subscribers, say §50,000 Of the bonds there shall bo sold §200,000, with a 50 ]-)er cent, allotment of stock. And the remaining- §700,000 bonds shall be sold from time to time, as the Company may require money, with such an allotment of stock, if any, as the Board of Directors may deem necessary. It being understood that the stdjscribers to the first §100,000 of stock, and §200,000 of bonds shall have for thirty days the right to take their ■pro rata, share, of the additional stock and bonds upon the terms thus fi.ved. The Railway CVmipany is to transfer to the Improvement Company its entire estate on the 6 Ocean, with the riglit to all rents, and to make such further improvements as it may deem best. The Improvement Company will then hav« left for disposal— Stock to be delivered to Railway Company $400,000 Stock for sale 300,000 Bonds 700,000 As fast as stock is delivered to the sulv scribers of bonds the Railway Company shall receive an equal amount of its reserved stock, and any of said stock not delivered when all the bonds are sold, shall be then transferred to it. Subscriptions to stock and bonds sliall be made thus : In order that all stock issued shall be fully piaid, and liable, under no circumstances, to future assessments, it shall be subscribed and paid for at par—and for every $500 of stock thus subscribed and paid for, the subscriber shall be entitled to purchase $1,000 in "bonds at 50 cents upon the dollar. So that for every $1,000 paid the subscriber will get a 7 per cent, bond for , $1,000 Stock 500 Total ¡61,500 7 At the end of JST'J the condition of the Im¬ provement Comi^any shonld he as follows : Total Liabilities :— Stock $300,000 Bonds 300,000 DiieRailway, on or before Jail. 1,1880 100,000 Estimating revenues on basis of earnings for the season of 18TS, the result of the Com¬ pany's business in 1879 will be as follows :— 1. From 1-3 gross receipts of bathing, $20,000 2. Ten per cent, on cost of Hotel and Pavilion (rent) 20,000 ño-lOp net profits on same 30,000 Income on the 8100,000 to be ex¬ pended—not less than 12 per cent 12,000 3. Rent from Marine Railway Com¬ pany 2,.500 Total receipts, say 881,500 Deductions— Insurance and taxes will not e.xceed.. . 810,000 Salaries 5,000 Seven per cent, interest on 8300,000 Bonds 21,000 8 Seven per cent, intei'est on the 100,000 due the Railway Company in 1880, about 6,000 Ten per cent, dividend on $300,000 stock 30,000 Leaving for Sinking Fund. . . 12,000 $84,.=>00 i That the above ro.siilt will be reali/.ed thei'c can be no doubt. The stock should be a ten per cent, investment' as fast as issued, and the income from the money prudently and ju¬ diciously expended, should in addition to the payment of this dividend and the interest, re¬ tire the whole issue of bonds within the 31 years. . To carry out this Improvement Plan, the Railway Comjniny appropriates one half its en- tiro Real Estate on the ocean, consisting of nearly 500 acres, with a frontage of about two and one-half miles. It places the Improvement Company in re¬ ceipt of reuts which next year, without the expenditure of more money, would amount to $72,500. 9 Against which would be not to exceed as follows— Insurance and Taxes 87,500 Interest on the 8300,000, provided to be paid and issued to the Railway Co., Cash and Bonds 21,000 Dividend on the Stock to be issued to it, 20,000 43,-500 Leaving a balance of 824,000 net to the Improvement Company from the income thus transferred to it by the Railway Companj'. In other words, the Railway Com¬ pany transfers at onceto the Improvement Com¬ pany, property, the rentals of which will exceed next year by 824,000 the interest upon the bonds and stock which the last named Company is to pay the Railway Company. Xot only this, but the JRaiheay Company guarantees payment of all the bonds to be issued. This the Railway Com¬ pany does, believing that such improvements as the new Company will make, will largely augment its receipts from passengers, and make its one-half of the Real Estate so retained, of as much value as the whole is at present. 10 Subscribers to the Stock and Bonds should certainly realize on the first subscriptions; on every $1,000 Bond, $70 " " 500 Stock, 50 On total cost of the two, gl'lO Or 12 per cent, on their investment. Guaranteed by the Railway Company, and with an income of more than three times as great as the amount of interest to be paid, these bonds will be, beyond any question, good. Subscriptions will be- received till March 1st, 1879, for the following— Stock $100,000 Bonds., 200,000 unless before that date the same shall have been subscribed for. On every $1,000 bond, and $500 stock, subscribed, there will he required ^fo be paid $50. The remainder (^950), must be paid on the 1st of March next, from which date the interest on the Bonds, at 7 per cent., will begin to run. The $50 to be paid on subscribing will be de¬ posited with the Company's Bankers, "The 11 Corbin Banking Company," who will issue a voucher therefor. On the first of March, the |950 is to be paid and they will pay oyer the amounts to the Improyement Com])any and receive and deliver the stock and bonds to subscribers. The cost of the whole property of the Rail¬ way Company to this date is nearly .-sOO.OOO. Its Stock is $.500,000, and there are Mortgages on the property covering its Real Estate, Fian- chise and Equipments to the e.vtent of §800,000, the annual interest on which is §56,000. All its surplus earnings, so far, have been expended on the property. Besides its Real Estate on the Ocean, and its roadbed and track, the Com¬ pany has 11 Locomotives and "74 Passenger Cars, with a goodly quota of Freight Cars, all of which are paid for. The Bonds of the Im¬ provement Company, while subject to this Rail¬ way Mortgage, as above, are a prior lien to the Stock of the Railway, the net earnings of which, exclusive of the rents and revenues from the Beach property, are largely in excess of the interest on its bonds. APPENDIX. Coney Island lies directly south from Xew York and Brooklyn, being distant about 12 miles from the heart of the former city. It is five miles long and has an average Avidth of about 3-4 of a mile in e.vtent ; it is separated from the main land by the 'waters of Sheeps- head Bay. This island with its beach faces the South. The construction by the City of Brooklyn of the Ocean Concourse, with the magnificent driveway thereto from Prospect Park, forms a natural division of the territory into two sec¬ tions ; the west comprising the old Coney Island, and the east the Manhattan Beach property, which extends from a line half a mile easterly from the Concourse to the ex¬ treme point of the Island, having a frontage of about 2 1-2 miles upon the Ocean, e.xtending back to Sheepshead Bay, and containing an area of some 500 acres. The Beach along this whole extent is acknowledged to be superior to any¬ thing of the kind upon the Atlantic Coast, while the bathing privileges are absolutely unsur¬ passed. i;5 The Manhattan Beach Railway Company has now its lines of Rail Road completed to a point on the East Rh-er, opposite 23d Street in New York, and to the waters of New York Bay, at Bay Ridge. It has ample and commo¬ dious depots at its terminus on the River and the Bay, and at the Island. The Beach is within easy access of a popula¬ tion of more than 2,000,000 people, and its position as the future watering place of the great metropolis is now assured. The maps hereto attached show the location of the property on the ocean as well as the lines of Railway. I N EW1Y0RJ< 8C M AN HÀTTÂN B EACH RAILWAY. ür