New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-10-27
To the Holders of
Missouri, Kansas & Texas
Railway Company
SEVEN PER CENT.
First Consolidated Bonds.

The undersigned, acting Committee in your be-
half have considered the plan of reorganization formu
lated by the Executive Committee of the Railway Com
pany, and regret that they unable to recommend
it to YOU for acceptance.
Under 1t you are called upon to give up per cent
interest per upon your bonds, receiving nothing
in exchange beyond priority of interest over all other
bonds for five years. but how even this is to be Sc
cured 10 you is not stated
For your overdue interest to June l. 1889, amount
ing 16 10 per cent, you are TO receive in cash
IL per cent, in per cent bonds 3 IL per cent
and the balance in preferred stock
The plan contempates fixed charges Of So O74, 800.
Inasmuch the major part of the earnings is derived
from the operation of that part of the property upon
which your bonds first lien, It would seem that
II reliance be placed upon this estimate of not
earnings no sufficient is Offered why you should
forego your full rate of interest of per cent.
Recognizing however. the desirablty OF maintaining
the property, II possible In its integrity, your Com
mtee have been and still in favor Of recommend
ing 10 you that you should forego portion Of the
agreed rate of per 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 dmlnution of in
terest should be given TO you in junior securities,
which would inure to your benefit in case of future
increase in the earning capacity of the property.
The six and five per cent bonds issued under the six
Per cent consolidation mortgage amount to at least
$50. 900 per mile involving a payment for interest
much larger than can be counted upon with safety.
To command confidence in its stability a plan Of re
organization should reduce absolute fixed charges TO
point fairly within the earning capacity of the road
at all times. leaving the difference to be represented
by an Income Bond Preferred Stock
the interest or dividends upon which would only be
paid if earned.
If no arrangement can be arrived at upon this
basis, 1t Is manifestly for your interest to take the
property which your mortgage, for which pur-
pose we recommend you TO sign the requisite papers
empowering the UNION TRUST COMPANY OF NEW
YORK TO demand possession as your Trustee, copies
of which may be had at the office OF the Trust COM
pany, No. 10 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 1t needs but
one million and half dollars Of bonds more TO en-
able the Trustee to act.
It is obviously the course of wisdom for you to
strengthen the hands of your Trustee and If possible
place 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
ccvers to the improvement and construction Of the
Texas portion Of the road not included under your
| mortgage and finally enabling your Trustee, when
the sale is made either buy in the property for you
or to sell 1t for your benefit at It's real value
EDWARD KING,
WILLIAM LIBBEY,
p. GEDDES, Committse
r. FULTON CUTTING,
WM. A. READ. -
New-YOrk October 25 1880 7