The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1888-04-21
THE MISSOURI PACIFIC.
Mr.. Gould Reads His Report ut u spe
cial Meeting.

cial Meeting.
New York, April 20.--At a special
meeting OF the Missouri Pacific Railroad
company held here yesterday, Mr.. Gould,
the president, presented the following report
concerning the Missouri, Kansas & Texas
Railroad company, which the directors
took under adyisement, without further
action at the present time:
NEw NoRH April IS 1855
To the board of Directors Of the Missouri Pacific
| Railway Company
Gentlemcn-l 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
4 Texas Railway company. The railway
OF the latter company has been held aud
operated since December l, 1850, by the
| Missouri Pacific company under lease for
ninety.nine years, and the amount Of
rental being the net earnings derived
from the operation OF the railway.
Under the provisions of the lease, these
net earnings are TO be applied TO the pay
mCnt Ol interest on the various classes Of
bonds, and any surplus thereafter remain
ing 10 be paid over 10 the Missouri, Kansas
4 Texas company. During the past eight
years we have paid the bondholders their
interest promptly, and at the same time
have been able out OF earnings 20 complete
laying the main line with steel rails. Since
December, 1850, the following quantities
OF steel rails have been laid in track, viz
Northern division Told road 20,037 tons,
costing Sl,3iI, 500; Texas division new
road) ~, I23 tons, costing II lbi, ii2, total
30. 800 tons. costing q. 800, $40. We have
also made large expenditures for new side
tracks, about 100 miles OF these having
been constructed; for new iron bridges,
hallasting, fencing, charging terminal sta.
tons, and for general maintenance account.
Tho board OF directors 81 the Missouri,
Kansas aud Texas company during these
| years have been In harmony with that vi
the Missouri Pacific company, and the lat
ter company hV, during periods OF ligh
earnings, made advances necessary 60 NEE
current interest, relying upon future caru
ings for reimbursement We have not
advanced about SSOO,0OO, and additions
advances will be required 10 carry th
company along until improved earning
can be- realized from new Crop, say u
| August or September next. In the mean
time the following Interest payments must
he met, viz: May l., Hannibal & Contra
Missouri, 81, 800, International & Great
Northern, $40, i0j; total, SEQ. $50; June l.
NJ, X. 4 T. general MORTGAGE, S71 $40
r. & ~, So, IN: total, SIS. $50: July I,
Union Pacific South branch, sGl go;
August /, NJ, X. & 7. III consolidated
Sj2O,Ggj. Grand total, n ,G3B, $50.
During the past year the credit II III,
company has been severely shaken aud IL,
earnings diminished owingto the following
causes, viz:
4. The entire failure OF the corn crop
on the company's lines Of railways IN Mis-
souri, aud kangs This cause will III
course disappear with new and bountilul
crops.
.. The construction 81 three new line,
into Texas, viz: The Atchison, Topeka 4
Santa fc on the west, q parallel and com.
pcting line from Kansas City Ia Galveston,
the -. Louis & san fmnciscO on the east
competing for Texas business 20 and ipom
81 Louis, and the -. Louis, Arkansas 4
Texas reaching all the main interior
points in Texas, such ~ Fort Worth ant
Waco. These new competitors are mol
only in the field Tor business that hciup
was barely sufficient Tor the old road, buI
|
reducing PR existing rates.
During the past two yeans the company
has al6o been vigorously pressed, nnd
finally almost driven 90 the wall. by thc
income bondh0ldcr. under the leadership
Of their attorney, Mr. T.. fllory.
This litigation eliminated imam uniayor
able decision against tho company In III,
lower court, aud ~ the bonds required 4,
| Lao. -. I'll
States supreme court would amount to sew
cral millions Of dollars, the alternative wa'
presented Of either allowing n ncciycrshiI
or attempting settlement with the bond
aud scrip holders. The directors adopted
the latter alternative, and accordingly Q
basis 81 settlement was arrived at inyoly
ing large increase Ia the general c1nsoli
dated mortgage debt, n very considerable,
diminuton In the amount Of SECURITIES
held IN the treasury aud a heavy cash pay
mcnt when the company WIS struggling Z,
the utmost to meet IT, fixed charges Il,
90 into particulars respecting these items
the terms Of settlement then cxAricd ~
quircd an increase In Tho p"r cent grn
onl c0ns0l mortgage debt 81 sl,7lO,OOO
the delivery OF Galveston, Houston a
Henderson railway imt mortgage bonds H.
! iilf WihHWil W VIC hltHWNt W 81 lANfN'N
and q chsh payment Of S2li,2j0.
Out Oi the cash payment above men
toned Mr.. Anderson was 10 receive q yer,
largo counsel fee, amounting 20 nearly
10000. Even these exceedingly lavou
bile terms 30 the scfiphOldos we're refuse,
by holders 81 the amount Of $4,000 ans
upward, who are now pressing their suit
and judgment for the amount oi thci
claim Il, am informed 10y our counsel
likely 10 DO entered within the next few
days. On my return few weeks sine
from abroad Il was announced la the pub
lie prints that u syndicate oi great llnanciu
strength had taken hold Of the aiIain o
ihe Missouri Kansas & Texas company
and that n board of directors OF equal,
strong names would be presented for cleo
ton ~ the coming annual meeting O
stockholders This movement met M
cordial appreciation, and chocriully dc
ciled not 10 make any opposition. ha
given my time and attention to th
affairs 0i the company for Owe
eight years NJ iis president vilhuu
receiving II oi salary therefor aud va