Fort Worth daily gazette. (Fort Worth, Tex.) 1882-1891, 1888-04-20
0OULD,I REPORN.
He HAS MUCH og INTEREST TO SAY T.
MISSOURI PACIFIC DIRECTORS.

Hh HAS US LhTkRhbI 10 SAY
MISSOURI PACIFIC DIRECTORS.
NEW YORK, April 19-At G special
meeting Of the directors of the Missouri
Pacific Railroad Company held here to-
day Mr.. Gould, president, presented :he
following report concerning the Missouri,
Kansas and Texas RailrCad Company,
which the directors took under advise
ment without further action st the
present time:
NEW YORK, April Is, 1858.
To the Board Of Directors OF The Missouri Pa
ciic Railway Company:
GENTLEMEN-I have called this special
meeting for the purpose OF presenting for
your consideration the relations, present
and prospective, of the Missouri Pacific
Railway Company 10 the Missouri, Kansas
and Texas Railway Company. TIE rail-
way Of the latter company, as you are
aware, has been held and operated since
December l, 1880, by the Missouri Pacific
Railway Company uIder 8 lease fer
ninety nine years, the amount Of rent
being the net earnings derived from the
operation Of the railway. Under the pro-
visions Of the lease the net earnings are
TO be applied to the payment of inter ST
On various classes Of bonds and any sur
plus thereafter remaining to be paid over
10 the Missouri, Kansas and Texas Com
p2ny. During tbs past eight years We
nave paid the boIdholders their interes
promptly and ST the same time have beer
able out of the earnings to complete tins
laying Of the main line with STEEL rails
Since December, 1880, the following
quantities Of steel rails have been laid
on the track, VIZ: N rtheIn division,
(7ld roGG) 1897 tens, costing Sl,947,-
$50; Texas division, (new rosd 2s. 423 tons,
coslirg l,l54 1852; total, 50, $50 tons,
costing 81 SOP 342. We have also made
large expenditures for new sidetracks,
sbout 100 miles OF these having been con
stTucted; for new iron bridges, hallasting,
fences, enlargirg terminal properties, and
for the general maintenance account.
The board OF directors of the Missouri,
Kansas and Texas Company during these
years has been in harmony with the Mis-
souri, Pacific Company, and the latter
company has, during the periods u light
earnings made the advances necessary to
meet the interest, relying upon future
earnings for reimbursement. We nave
now advanced about S8o0,000, and addi-
tionsl large amounts will be required TO
cSrrV the company along until improved
earnings can be realized from the new
CROP, say in August or September next.
In the meantime Ene following interest
payments must be met, viz /: May l,
Hannibal snd Central Missouri, 1924, $50;
International and Great Northern, S246,
1876; total, S27O,S55.
June Missouri, Kansas and Texas
general mortgage, S77l.570; Tebo and
Neosho, Sl2, ITO; totsl, S78S. $50.
July Union Pacific, southern branch,
SSl, 500.
August missouri, Kansas and Texas,
first consols, $500, 696.
Grand total, 81 ,636,s50.
During the past yesr The credit of the
company has been severely shaken and its
earnings largely mipished owing to the
following causes, viz: First-The entire
failure of the corn crop on the company's
lines in Missouri and Kansas. This GAUGE
VII Of course disappear with new and
bountiful crops.
2. The construction OF three new
lines into Texas via the Atchison, Topeka
and Santa Fe on west, parallel and COM |
petiDg line from Kansas City to Calves |
ton; the ST. Louis and San Francisco on |
the east, competing for Texas business to |
and from ST. Louis; the 81. Louis, Ar
kansas and Texas, reaching ell the main
interior points in Texas, such as Fort
Worth and Waco. These new competi-
Tors are not only in the field for the bust
ness that before was barely sufficient for
he old road, but this competition has re-
suited in greatly reducing pre-e1isting
,stes.
3. During the past two years the COM
,anY has also been vigorously pressed
md finally almost driven to the wall by
ncome bond holders under the leader
hip of their attorneys, Messrs. E Ellery
Co. This litigation eliminated in an
decision against the COM
ANY in lower court, and as the bonds
equired to carry the case on appeal to
he United States Supreme court
would amount to several million '
dollars the alternstive WAS presented OF {
ither allowing The receivership or at
emptiDg settlement with bond scrip
olders. The directors adopted the lat
er alternative, and accordingly basis of
ettlement Vas arrived at involving i t
arge increase in the consolidated }.
lortgsge debt and very consider &
BILE diminution in the amount c
securities held in the treasury snd I
eavy cash payment when the company
as struggling to its utmost to meet its t
xed charges. To 60 into particulars re v
1ecting these items, the terms Of settle e