The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1886-06-02
JAY GOULD, The WRECKER
HIS DESIGNS ON THE TEXAS PA
CIFIC RAILROAD.
The Scheme by Which He Is Trying
TO Absorb the Entire
System.

New YORK, June 1.-The World this
morning tays: Ii happened that at
the very moment that the receiver OF
the Bankers and Merchants Tele.
graph Company is proceeding against
Jay Gould and his Western Union
Company for wrecking a rivalIsystem,
the stockholders of the Texas and
Pacific railroad are charging Jay
Gould with wrecking that company
in the interest OF the Nilsson
P cific he road was placed in the
receivers hands last December, and
Judge Partee appointed John G.
Brown and ex-Gov. Sheldon ss the
receivers The former is one of the
Gould officers OF the road and solicitor
OF Gould's southwestern system. Elk
Gov. Sheldon appears to have some
ideas OF his own about running a rail-
road, and is ent rely satisfactory to the
stockholders Last month Isaac j.
WistaT, Lewis May, G. +. Satterlee, b.
+. Newcomer, John Markoe, w. ID.
Minsor, John l. Welsh and j. n.
Hutchinson were appointed a com
mittee ITO represent all interests"
and they issued the plan of reorgaL-
ization OF April 9th This plan was
not satisfactory to the shareholders,
and week or two ago the latter met
and appointed NJ Burr, Jr., p. j.
Goddard and John Bloodgood
as a committee to represent
them. TIE holders of the
income and land grant bonds
have also appointed a committee, con-
sisting of eim7n j. Drake, Christie
pher Meyer, w. G. Hall and VIM.
Strauss. Five of the eight members
of the first or philadelphia Com
mittee," as it is called, are directors of
the road, and it is freely charged by
the stockho' ders that the Philadei-
phia Committee simply represents
the desires of Jay Gould in regard to
the reorganization.
"Jay Gould has simply wrecked
this road" said Henry Clews, who
presided at the stockholders meeting
yesterday. 1.-THE plan is to reorgan-
ize the road through foreclosure,
which makes forfeiture of its present
United States charter A State chsr-
ter is to be substituted therefor, which
admits of the road being gobbled up
at bankrupt price by few individ-
uals and leased to the Missouri Pa
ciiic in perpetuity. This action is
prohibited by its present charter. My
pos ton in this matter was fully set
forth in the remarks at the STOCK
holders meeting. l said then, and
l must say now, that | have
very little confidence in the
Philadelphia committee. 1t is quite
apparent that they are not only ready
but willing tn sacrifice your property
for the benefit of the Missouri Pacific
RAILROAD Company. The manage
ment heretofore has been attended
with the suspicion of unfairness
toward stockholders, as the road was
run for all it was worth solely in the
interests of the Missouri Pacific Com
pany, and its present deplorable con-
dition is an evidence that the treat
ment it has received has been unjust,
TO say the least. Before the road was
placed in the hands of a receiver its
running expenses were S74 per cent.
of the G oss earnings. Sinte then
they have been reduced to rs per
cent and after being put in a fairly
good condition the road can be run at
80, which would not only provide for
fixed charges but would admit of a
dividend on the stock besides. This
is the estimate Of those who are good
judges of property. The only safety
is to retaio the management in the
hands of the receivers "