New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-04-21
ANSWERING JAY GoULUs REPORT
DUTCH BoNDHoLDERs DISSATISFIED.


SIMON sTERNE TO ISSUE FORMAL REPLY TO
DAf-mh ANDEBSCN's FEES EXPLAINED.
Inc report presented by Jay Gould, the president
" tne directors Of the Missouri Pacific Railroad, re
iernhg 10 the financial position Of tho Missouri, Kan
sas and Texas, and the action OF It's security holders
IN ther efforts to obtain the control independently o.
'he missouri Pacific management, met with some
strong comments yesterday from the representative
"a inc income bondholders. meeting was held h
ene AFTERNOON 10 discuss the report and take action
'nsreon, whom II was decided that Simon sterne wAo
reprosents the Ducth bondholders of the Missouri
n~sas ana Texas Railroad, should prepare circras
=. "pV 70 MI Gould's report as published yesterday
4 s'erne was seen after tho meeting and said thAi
no "ouia have circular ready for publication todzy
asserting 70 Mr. oould's report as published hs sald
IAN 70 see how the Missouri. Kansas and Tsxzs read
oeotor 70 the Missouri Pacific Company to the ca
ent OF $500 600 ess how such can n.
increased By 81 before the end Of ths y.s, =,
sa'ea oy MI Gould. when IL was a conceded facs A.
oush Gus In an aetien before courts that in Decsr
% looe the Missouri Pacific was debtor to the Kansas
ieAAs 70 The amount Of $1,000 600; but as all wall
Ano"s these things are matter Of mere bookkeep-
ms anu az the present boards Of direction Of both the
companies are Identical and one company Is lessor and
w other lessee we think that this state Of things should
.sei exist On the face of it. think Mr. Goulcf 8
semene are conclusive arguments in favor OF Missouri
Kansas and Texas having management OF ia own inde
pendent Of and separate from that Of the Missou pocs
company and that the stockholders Of the former road
nave access TO Its books and inquire into It's
meh1 We make no charges against Mr. Gould and tina
missouri Paeihc MANAGEMENT yet but we claim that the
Kansas and Texas and does earn It's fixed
charges and interest
AS to the charge Of net earnings through bad
crops and 90 on do not how that ought to or can
aneet the Kansas and Texas road without having pro
poronsee eueet upon the Missouri Pacific; and It Is on
iecoru mat Notwithstanding these alleged adverse cIrcum
"A ~ an1s
company although at slightly reduced rate at its Last
annual meeting 1t is fair that the Missouri Kansas
Ie&as security holders should be called upon to nav
more Than their Just proportion any deHcit or loss It
known fact that the suit before referred to was bene
nj 70 both companies to the 81 900 ooo and Rus
SCH sage who was the largest holder and
bonds and scrip, Vice president OF that company He
was also director Of the Missouri Pacific and It would
DC absurd to suppose that ooer Missouri Pacific
would benefit at the expense OF the road repre-
sent tho Dutch bondholders directly than other In
terests and they think that they are entitled to repre-
sentation on the directory.
In regard to the Of small lots of stock TO r.
Euery Anderson and Others, which Mr. Gould mentioned
In his report being merely for the purpose Of quaca
ton for election to the board the published amounts Of
stock OF bonds do not necessarily show the holdings
OF any Individual but even granting that the figures given
arc the actual holdings Of tie gentlemen named By Mr.
Could am Informed from reliable source that the
amount OF these transfers is larger the actual hold
ings OF the gentlemen comprising the present board OF
directors do not to what steps would be
by my clients in the event OF default being made In the
payment OF interest the bonds intmated by Mr..
Gould but do not think that the management Of the
Missouri Pacific Company is prepared 70 say that the
Missouri, Kansas and Texas is in lnsovent condition
e. Ellery Anderson was seen at his Office but do
cned 30 say anything with regard to the statements IN
Mr. Goud's report, except that he had not received
$4,000 for HIS services to the scphoders from the
company but had only been paid 500 900 for his four
years work. which sum paid to him by his clients