New-York tribune., 1889-10-29
To the Holders of
Missouri, Kansas & Texas
Railway Company
SEVEN PER CENT.
First Consolidated Bonds.

The undersigned, acting as Committee in your be-
man, nave considered the plan Of reorganization formu
iatel by the Executive Committee of the Railway Com
pahy' and regret that they unable to recommend
u 10 you for acceptance.
Under 1t you called upon to give up . per cent
interest per annum upon your bonds. receiving nothing
IN exchange beyond priority of interest all other
oohus Tor five years, but how even this is TO be Sc
cured to you Is not stated.
FOR your overdue interest to June l, 1880, amount
ing to l6 ID per cent, you to receive in cash
" IL per cent. in per cent. bonds i-2 per cent
anu the balance In preferred stock
The plan contemplates fixed charges Of 80, ,074, 800
ihasmuch as the major part of the earnings Is derived
Hom the operation Of that part Of the property upon
which your bonds a first lien, 1t would that
reliance can be placed upon this estimate Of net
earnings, no sufficient Is offered why you should
ioego your full rate Of interest Of per cent
recognizing however the deirabllity of main tanning
Inc property II possible, In its integrity your Com
mlco have been and still in favor of recommend
ing TO you that you should fOrego portion Of the
agreed rate Of FER cent upon your bonds provided
you could obtain such additional security would be
reasonable equivalent for the sacrifice, and provided
also, that something in lieu OF the diminuton Of in
terest should DO given TO you in junior securities
which would inure to your benefit in OF future
Increase I'm the earning capacity OF the property.
The six and five per cent bonds Issued under the six
per cent consolidation mort gage amount to at least
FJoOOO per mile, involving a payment for interest
much larger than can be counted upon with safety
To command confidence In its stability, plan Of re-
organization should reduce absolute fixed charges to
point fairly within the earning oapacir OF the road
at all times leaving the difference to be represented
by Income Bond Preferred Stock
the interest dividends upon which would only be
paid If earned
l. no arrangement be arrived az upon this
basis It Is manfrstly for your interest to take the
property which your mortgage for which pur
pose VIC recommend you to sign the requisite papers
empowering the UNION TRUST COMPANY OF NEW
YORK TO demand possession your Trustee copies
Of which may be had at the Office Of the Trust Com
pany No 73 Broadway, New-York.
over SIX MILLION DOLLARS Of the SEVEN PER
CENT BONDHOLDERS have already followed the
recommendation OF the Committee and signed the
papers required by the mortgage, and it needs but
million and half dollars Of bonds more to
able the Trustee TO act
IL Is obviously the course Of wisdom for you to
strengthen the hands Of your Trustee and if possible
place It in possession of the property, thereby nsur
ing, pending foreclosure proceedings, the application
toward the payment Of interest upon your bonds of the
net earnings which have been diverted by the Re
ceverS 10 the improvement and construction OF the
Texas portion Of the road not included under your
mortgage, and finally enabling your Trustee, when
the is made either buy in the property you
or to sell It for your benefit at its real value.
EDWARD KING,
WILLIAM LIBBEY,
z. GEDDES, Committee
II. FULTON CUTTING,
WM. a. READ
New-York October 25, 1850