Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1888-04-26
GOULD'S REPORT.

How he Views the Situation of the Missouri.
Kansas Texas Railroad.
New YORK, April 19.-At a special
meeting Of the directors Of tne Missouri
Poetic road to-day, President Gould
presented long report concerning the
Missouri, Kansas d. Texas road which the
directors took under adyisement. After
detailing the provisions of the lease by
the Missouri Pacific for ninety years, of
ii e NJ, e. u T. rentals, being the earn
inrs, he describes the many improve
ments which have been made during the
past eight years, and says the Missouri
Pacific has now advanced the NJ, K. & L.
about eight hundred thousand dol
lars to meet the current expenses.
These advances were necessary during
the periods of light earnings and addi-
tionaI large advances will be required
to carry the III. K. & 4. along until i'm
proved earnings can be realized from
the new crop. In the mean time the in
terest payments must be met to the
amount Of over two millions and a half
of dollars. During the past year the credit
and earnings of the NJ. K. & 7. have been
shaken AID diminished because of the
failure Of the entire corn crop on the
cOmpanys lines in Missouri and
Kansas and because of the con-
strucLion of three rival lines
into Texas and because of the litigation
of the income bond holders, which result
ed in an unfavorable decision in the
lower court. To save further expense.
the directors adopted a plan Of settle
ment which involved an increase of five
per cent. of the general consolidation of
amalgamated debts of $I,700,000; on
delivery of tie Houston d Henderson
first mortgage bonds TO the
amount of $1,1O0,9CO, and cash
payment of $214,000. Even these ex-
ceedingly favorable terms were refused
by scrip holders to the amount of $780,.
600 and upwards, and judgment for the
amount of their claims is likely to be en-
tered within the n2xt few days.
"On my return a few weeks since from
an absence abroad" said Mr.. Gould, cit
was announced in the public prints that
syndicate of great financial strength had
taken hold of the affairs of the Missouri,
Kansas d Texas, and board of directors
of equally strong names would be pre-
scented for election at the coming annual
meeting. This movement was met by
cordial appreciation and | cheerfully ae
cided not to make and opposition. /
have given my lime and attention to the
affairs of the company for over eight
years as president without receiving any
salary therefore / was not only willing
to stand aside in favor, but also to vel
come any one who could render more
efficient service. Just at the close of tie
transfer of the books, however, Mr.. Bull,
one of the active men In the new move
ment sent 100 shares of the stock TO the
transfer office to be reissued in the fol
lowing names: William. @. MenundO, j.
Montgomery, Jr., j. De Neufville. Simon
Stern, e. Ellery Anderson, W. l.. Bull, and
Nj. Marterson, another member of the
committee, also transferred to Rudolph
Keppler, L. Worden and j. j. McCook ten
shares each, and w. l.. Bull seventy shares.
1t is assumed that the foregoing transfers
were made for the purpose of qualify
ing the persons named as members of
the proposed new board of directors.
If this assump tion were correct, the list,
embracing as it does three lawyers, sever
al brokers and the names of some who
were very active in pushing the company
to the uttermost IN connection with the
scrip suit, is certainly very disappoint-
ing one. 1t has been announced in the
public press that Mr.. Anderson, the at
torney for the income bond hold
ers IN the suit referred to,
would be the new president
of the company. 1t is nv duty under
these circumstances to present the fore
going facts to you as, if it should be de-
cided 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 and
Texas railway company in order that the
necessary financial arrangements may be
made