Los Angeles daily herald., 1888-04-20
RAILROAD INTERESTS.
Condition of the Missouri, X nsas
and Texas-GOuld,S Report.

Condition of the Missouri, X a m sal y
and Texas-GOuid,s Report.
New YORK, April 19.-At special
meeting of the directors of the Mis-
souri, Pacific to-day President Gould
presented a long report concerning
the Missouri, Kansas and Texas road
which the directors took under ad-
visement. After detailing the provi-
sion cf the lease by the Missouri Pacific
for ninety years of the Missouri,
Kansas and Texas, the rental
being the net earnings, he describes
the many Improvements which have
been made during the past eight
years, and says the Missouri Pacific
has now advanced the Missouri, Kan
sas and Texas about $sOO,OOO to meet
current interest. These advances
were necessary during the periods of
light earnings, and additional large
advances will be required to carry the
Missouri, Kansas and Texas along
until improved earnings come from
the new crop. In the meantime,
the interst payments must bs met
amounting in the aggregate to over
81 500 900. During the past year the
credit and earnings of the Missouri,
Kansas and Texas have been
SHAKEN AND DIMINISHED
Because of the failure of the entire
corn crop on the company's line in
Missouri and Kansas, because of the
construction of three rival lines into
Texas, and because Of the
litigation of the income bond
holders, which resulted unfavorably
To save further expenses the directors
adopted plan of settlement which
involved an increase in the five per
cent. general consolidated amalgam-
ated debts Of $l,700,000, the delivery
OF Galveston, Houston and Henderson
first mortgage bonds to the amount OF
81, 100000, and cash payment OF
$2l4,0 Even these exceedingly
favorable terms were refused by
the script holders to the
amount of $500 900 and upwards
and judgment for the amount of their
claims likely to be entered within the
next few days. On my return few
weeks since from All absence abroad,
said Mr.. Gould, it was announced in
the public prints that a syndicate OF
great financial strength had taken
hold of the affairs Of the Mis-
souri,, Kansas and Texas, and
that board of directors of equally
strong names would be present
ed for election at the coming
annual meeting. This movement
met my cordial appreciation and I
cheerfully decided not to make any
opposition. l have given my time
and attention to the affairs of the
company for eight years as president
without receiving dollar
OF SALARY THEREFOR,
And I was not only willing to stand
aside in favor of, but also welcome
any one who could render more effic-
lent service. Just at the close of the
transfer books, however, Mr.. Bull,
one OF the active men in the new
movement sent one hundred shares
of stock to the transfer office to be re-
issued in the following names
VIM. S. Henundo, j. Montgomery,
Jr., J. DeNeuville, Simon Stein, L.
Ellery Anderson, w. L. Bull and Mr.
Martinson. Another member of the
committee also transferred to Rudolph
Neppler, Daniel 7. Worden and John
j. McCook ten shares each, and w. L.
Bull seventy shares. 1t is assumed
that the foregoing transfers were made
for the purpose of qualifying the per-
sons named as members of the pro-
posed new Board OF Directors. If
this assumption is correct, the
list, embracing as it does three
lawyers, several brokers and the
names Of some who were very
active in pushing tie company to the
uttermost in connection with the in
come scrip suit, it is certainly very
disappointing one. 1t has also been
announced in the public press that
Mr.. Anderson, attorney for the income
bond-holders in the suit referred to,
would be the new president of the
company. 1t is my duty under
these circumstances to present
the foregoing facts to you,
and if it should be decided
by your board to hereafter adhere
strictly to the terms Of the lease,
prompt notice to that effect should be
given to the board OF directors of the
Missouri, Kansas & Texas Railway
Company in order that the necessary
financial arrangements may be made
elsewhere for its immediate interest
and requirements in excess of the net
earnings of the road.