Fort Worth daily gazette. (Fort Worth, Tex.) 1882-1891, 1886-01-02
THE OTHER SIDE.
Manifesto OF the Management of the
Mexican Central Railway
Company.
Hard Times, High water, Dlstrust and
the Action of Mexico Cause
Disaster.
Special to the Gazette.

Special 20 the Gazette.
BosToN, MASS, Jan. 1.-The protest
from Kidder, Peabody Co., Lee, Hig-
ginson & Co., Thomas Nlcherson and
others to the Understanding plan of the
Mexican Central directors, and their re-
quest for modification Of the same was
somewhat Of surprise to the officers of
that corporation. In view of the fact that
several of those who signed it expressed
their approval of the plan when the same
was first submitted TO them and signifled
their intentions OF the time OF sending In
their bonds in accordance with
its terms, their failure, while
they complain of its unfalrness, to
suggest remedy is noticeable and
on this account as well as for the reason
that the gentlemen have been using their
efforts to dissuade others, both here and
in the West, from depositing their bonds,
the directors have felt called upon to
make lengthy reply to their protest.
This was sent to them this afternoon, and
copies of it will also be sent to all the
larger bondholders. IL covers thirteen
pages of letter paper in type-writing, and
embodies in detail the causes that have
led up to the plan now being pushed to
contamination. Besides giving fully the
deliberations, with all its accompanying
vexatons, which the whole subject re-
ceived from the time the subsidy pay
ments were suspended, up to the time OF
the adoption of the plan. 1t says:
cat one time in the second
quarter of the year the income of this
company warranted very hopeful views
for Ie different securities. The earnings
were satisfactory. The subsidy receipts
were regular. The cost of maintenance
in the hard times were strong arguments,
but with that misfortune which never
comes singly the current of the times
seemed of sudden to draw trouble from
each cross arroyo, between Paso del
Norte and Mexico, and the suspension Of
the subsidy was followed by o decrease in
the earnings and accompanied by series
Of washouts which swelled the cost of
maintenance TO great extent. Discour-
agement engendered a distrust of the
Mexican government, and discomfort
with the management in Boston.
The latter had an unusually
hard task in maintaining its
integrity at home and its friendly
relations with a foreign and bankrupt ma
ton, so that the loss which the investors
felt as one form OF the trouble came after
another, caused very thorough Sitting OF
the facts here and there. Now the time
has come to adjust the financial obliga-
lions of this concern, to meet ITS future
earning power, and to relieve the yearly
fixed charges so that its treasury be not
only kept from bankruptcy but from the
very verge OF 1t. The proposition to re-
fund the interest charge is before you,
and the status OF the various securities OF
the company, we believe, is July UNDER
stoodi therefore, In passing upon the re-
funding scheme, II Is merely necessary 10
rely upon the integrity OF the management
and the fairness OF the plan. The
management has proved itself justified IN
all its actions, reticence ana policy ana