New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-08-13
MISSOURI KANSAS AND TEXAS.
PROSPECTS OF REORGANIZATION - WHAT a


Prominent BANKER SAYS.
There Is such general interest manifested in the
affairs Of tic Missouri, Kansas and Texas Railroad
,hat rrn,,ne reporter called upon several prominent
handing houses which arc known TO be largely inter
-,od In Missouri Kansas and Texas securities the
maturity of which arc the general mortgage Gs and 5s
IN ascertain their views IN reference to Mr.. hinss
latest circular issued 10 the consolidated per cent
bopdholdors 4 member Of one of the firms referred
10 EXPRESSED his views very plainly, that whe they
hold some Of the : per cent bonds they were not In
favor Of .hc arbitrary policy Mr. Ming Is pursuing
.Nr King he said. expressly states in his cir
cula that he is moi anxious to run the road as trustee
hut * willing to do 80. Tho impre ssion IS created
a4 this is lust what he wants. but the fact that tho
conpanv is again in the hands Of receivers indicates
that his former trisceship not exercised wisely
and If the company had then been properly reofganzcd
the security holders would not Row be in their I'M
fortunate position. Mr. Pcchham's advice 10 Mr..
King laws him open 10 The suspicion that he Is looking
out for the lawyers fees, as his policy means long
u.iratlon instead Of a speedy rcorganzation.'
"Nothinc could have been more unfair,' said this
banker than Mr. Kings statement OF net earnings.
whom he makes # appear that she northern division
earned i'm January. February and March about
$3.50 GOO surplus. while the southern division ran be-
hind operating expenses about $4,000. Everybody
knows the dlapldatcd condition the Missouri. Kansas
and Texas was In when 1t went into the hands OF the
receiver: thai the weather I'm Texas last
winter was the worst in its railroad history
and that work was done under the most
untavorable conditions and therefore was very eX-
pcnsive Besides tho receivers rolad the track with
many miles of new rails, all Of which went mo OPP
Grating expenses: and strange TO say while the
weather was exceptionally bad in Texas, 1t was eN-
ceptonaiy good north OF that state, and Kansas ana
NJ souri, had not known such mild winner IN many
year~ Therefore. II Is only unfair but most dc
ccptive to present statements under these conditions
and claim six scyenihs of the net earnings for the
northern division and only One-Sevenh for the south
cIn div sion. Take the thIec-months' earnings
on q normal basis Of operating eXpenses-say 30 per
cent which il viii be when the road Is In good
orlcr-and apply the recommendations OF the co"-
mitce which has Just made its report, and 1t VIII be
found that the northern division earned about three
Gfths 10 the southern divisions two-Gfths, which IS
very different from siXseycnths and one seventh. l
think Mr. Enos is somewhat out OF the way IN claiming
90 per for the southern DIVISION but he i mcn
nearer being correct than Mr.. King. Mr.. Ming chaf-
acterzcs a. most extraordinary tho receivers getting
control Of the Kansas City ard Pacific roais and the
court in ordering #. Extraordinary conditions de-
mand and justly extraordinary measures. We "a
holders of both classes Of bonds approve OF the action
of the court III this matter, We understand gives
the Missouri Kansas aud Texas the adv antage OF an
independent entrance to Kansas city, and also the
shortest Inc the cuff by forty miles (Which, By
reason Of the Interstate law Is OF great benehp' ana
II also makes tho shortest line 10 Mexico, from which
place aI r. ore traffic is developing 10 the smclieS
in Kansas CITY. Nj. King does not clam mat the
Missouri Kansas and Texas Is Injured by NE ne"
acquisition, only that IL IS extraordinary rms mat
ter 10 doubt was well considered by those IN charge
of the Opel alton Of the road
What do you think Of the prospects of reorsanlza
tion?7 ~,
They do not seem very favorable Just now. We
think will be unfortunate for all interests II The sN >
tenn is broken up. No, We have not placed our bonds
with either OF the committees as our customers 40
not approve OF Mr.. Kings policy, which would break
up the system. The other committee claiming 10
represent the general ana u mort gage bonds dO's
not seem TO have any other plan than TO recommt
the property 10 Mr.. Gould's administration, while
the steady Increase OF earnings under the receivers
seems 10 Indicate That the bost interest OF all parties
IS 10 have independent reorganization. We under
stand the stockholders have some plan of rorgdnlZa
ton looking 10 this end. We will wait to what
this plan IS before allowing either of the committees
TO repre- sent our interests