New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-10-28
To the Holders of
Missouri, Kansas & Texas
Railway Company
SEVEN PER CENT.
First Consolidated Bonds.

The undersigned. acting as Committee in your be-
nan have considered the plan OF reorganization form
iated by the Executive Committee OF the Railway Com
pahy' and regret that they are unable to recommend
u 10 you for acceptance.
Under It you arc called upon 10 give up per cent
interest per snnum upon your bonds receiving nothing
IN exchange beyond priority of interest over all other
pohns for five years. but how this is 10 be So.
cured TO you is stated.
For your overdue interest to June l. 1850 amount
ing 10 10 l-3 per cent, you to receive In cash
D IL per cent. In per cent. bonds IL per cent
ana the balance IN preferred stock
The plan coutcmplates fixed charges OF So o74 800
Ihasmuch as the major part of the earnings IS derived
nom The operation Of that part Of the property upOn
which your bonds arc a first on 1t would seem that
II reliance can be placed upon this estimate Of net
earrings, no sufficient is offered why you should
forgo your full rate of interest Of seven per cent
Recognizing. however the desrabillty Of maintaining
the property. If possible, in IT'S integrity your Com
mitee have been and still I'm favor of recommend
ing to you that you should forego portion Of the
agreed rate OF per cent. upon your bonds provided
you could obtain such additional security as would be
reasonable equivalent for the sacrifice and provided
also that something In lieu Of the dminutlon OF in
tercst should be given 10 you in Junior securities
which would inure 10 your benefit IN case Of future
increase In the earning capacity OF the property.
The six and FIVE per bonds issued under the SIX
per cent consolidation mortgage amount to at least
Sd1'OOO per mile, involving a payment for interest
much larger than can DO counted upon with safety
To command confidence in its stability, plan Of re-
organization should reduce absolute fixed charges 10
point fairly within the earning capacity Of the road
at all times. leaving the difference to be represented
by an Income Bond or Preferred Stock
the interest or dividends upon which would only be
paid If earned
II no arrangement can DO arrived at upon this
basis it IS manfcsty for your interest to take tho
property which your mortgage for which pur
pose we recommend you sign the requisite papers
empowering the UNION Trust COMPANY OF NEW
YORK to demand possession your Trustee, copies
Of which may 10 had at the Office Of the Trust Com
pany No % BOadway, Now-York
over SIN 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
one million and a half dollars of bonds more to en-
able the Trustee TO act
II is obviously the course OF wisdom for you 10
strengthen the hands Of your Trustee, and II possible
place il in possession Of the property thereby insur-
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
ceivcrs 10 the improvement and construction Of the
Texas portion Of the road not included under your
mortgage. and finally enabling your Trustee when
the salo is made, either TO buy in the property you
or to sell It for your benefit at It's real value
EDWARD KING,
WILLIAM LIBBEY,
p GEDDES, Committee.
i. FULTON CUTTING.
WM. A. READ.
New-York, October 25, 1889.