New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-05-08
2 MIR. GOULD WILL NOT GO WEST.
NO INSPECTION OF NJ, K st. JUST NOW.

THE DIRECTORS RATIFY THE ABRoGAiioN VIZ
GREAT YoRTHrRS LEASE.
A special meeting Of the directors OF the mSSoui'
Kansas and Texas Railroad was held yesteru"y "i~
the acts Of the executive committee inciuaihe 'o @"
roea,lon of the lease Of the international anu oe
Northern, were approved. 1t was ruhoreu 'h a."
Street that Mr. Gould would start immedisoiy on ."
tnspecton Of the railroads OF the Southwestern
and tho Inference was quickly drawn that his depart
ure meant for the Missouri, Kansas ana
Texas property, 1t is uncertain whether the iac'
that Mr.. Gould has no present Intention OF gong
West 10 grow up with the country would nave
checked the downward movement OF socAs' iho
Missouri Kansas and Texas committee suggested 'nA'
Mr. Gould might be intending receivcrsnip' pu' was
unable to give reason why Mr.. Gould's presence
should DO necessary
II would appear ordinarily that several members
OF the Southwestern system might he placed IN the
hands Of receivers and the principal question seems
70 he whether MIR Couli or tbs real owners should
have the tight of nomination. The annual meeting OF
tho Missouri, Kansas and Texas will b held on May
49, and there Is no doubt that the stockholders will be
able TO elect new board OF directors BY the recens
cancellation of the lease OF the International and
Great Northern, the new managers Of the Missouri,
Kansas and Texas will have . railroad system without
important connections at either end.
Jay Gould said yesterday in reply TO particular
the West tonight are not correct. hope to make an
inspection Of Southwestern system in short time
bu. cannot say when shall leave the city. pre-
sumo that the new management Of the Missouri, Kan
sas and Texas will BIO able to extract blood from
turnip l have not been able to do So"
About the lease Of the International and Great
Northern, which has been legally annulled Mr. Gould
said IL had heard nothing about these things until
after my return from Europe l discovered then that
fha INT aft al wa mr.
earnings and in the first quarter the excess of ex-
peDdtJT SAL ,277. / asked the reason for this
condition and learned for the first time that the At
torney General of Texas had begun suit against the
company. His complaint about the physical condition
Of the road being remedied fast as possible and
good deal of money was spent on improvements The
suit comes up In June and aside from this point
understand that the laws of Texas very strict not
only about tho consolidation of competing lines, but
also the Interchange Of business by connecting roads
II the suit by the State should be successful the stock
of the International and Great Northern would be alb
sOlutey worthless My efforts recently have been to
preserve the rights Of the shareholders"
In regard to the rumors about the possible default
In the payment of the June interest on Missouri Kan
and Texas bonds, Mr.. Gould iDtimated that the
question for the proposed new management
and not for him. "The new owners will find the
property In good condition. he remarked. but they
will have to say what they will do with it The ter
rtory has been divided closely and with the building
Of every line rates for transportation have becn
lowered. The new owners will be hampered about
connec tons. The Missouri Pacific has given the Kan
and Texas much business than 1t has 70
ceved from the Kansas and Texas, and c answer the
inquiry why the Missouri Pacific has been able to pay
dividends when the other company mas not earnoa
first charges IL is only necessary TO that tho fixed
payments of the Missouri Kansas and Texas larger
per mile than those of the Missouri Pacific, with 10
per cent dividends added. Tho Missouri Pacific is
sngulary free from positive guarantees and do not
know Of property that st the moment is In snugger
shape"