Wichita eagle. [volume] (Wichita, Kan.) 1886-1890, 1888-04-20

during the period of light earnings and
additional large advances will be required
| to carry the Missouri, Kansas & Texas
along until improved earnings can be re-
allied from new crop. In the meantime
interest payment must be met, amounting
in aggregate to over 81, 100000. During
| the past year the net earnings of the Mis-
| souri,. Kansas & Texas have been shaken
| and diminished, because of the failure of
the entire corn crop on the company's lines
in Missouri and Kansas, because of con-
struction of rival lines in Texas
and because of litigation of income bond
holders which resulted in unfavorable
decision in court. To save further ex
pense the directors adopted the plan Of
settlement which involved an increase in
5 per cent Of the general consolidated
amalgamated debts of 81, 200. 900, delivery
of Galveston, Houston & Henderson first
mortgage bonds to the amount of 81 ,100.
600 cash payment S214, 200. Even these ex-
ceedingly favorable terms were refused by
scrip holders to the amount OF $780, 900 and
upwards and judgment for the amount of
their claims are likely to be entered within
the next few days.
'On my return few weeks since from
my absence abroad" says Mr.. Gould, sit
was announced in public prints that
syndicate of great financial strength had
taken the affairs of the Missouri, Kansas e.
Texas, and that board of directors of
equally strong names would be presented
for election at coming annual meeting.
This movement met cordial appreciation,
and / cheerfully decided not to make
any opposition. | have given my
time and attention to the affairs
of the COMPANY for over eight
years as president without receiving dol
lar of salary therefor, and was not only
willing to step aside in favor of, but also
to welcome any one who could render more
efficient service. just at the close of the
transfer books, however, Mr.. Bull ,one of
the active men in the new movement, sent
100 shares of stock to the transfer office to
be reissued in the following names: VIM.
S Henundo J. Montgomery, Jr., j. n.
Melville, Simon Stern, Emory Anderson,
w L. Bull and Mr.. Martinson. Another
member of the committee also transferred
to Rudolph Keppler, Daniel I. Wooton and
John McDOok ten shares each, and w. Ia.
Bull seventy shares. 1t is assumed that
the foregoing transfers were made for
the purpose of qualifying persons named
as members of the proposed 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 the COM
pany to the uttermost in connection with
the income script suit, is certainly
very disappointing one. 1t has
also been announced in the pub
lie press that Mr.. Anderson, attor
ney for the income bond holders,
in the suit referred to, would be now
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
necessary financial arrangements may be
made elsewhere for its immediate interest.
requirements in excess Of net earnings of
the road "