New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-10-30
To the Holders of
Missouri, Kansas & Texas
Railway Company
SEVEN PER CENT.
First Consolidated Bonds.

me undersigned acting Committee IN your be-
nai, have considered the plan OF reorganization formu-
aed by the Executive Committee Of tho Railway Com
pany' and regret that they unable to recommend
IL 10 you for acceptance
Under It you are called upon to give up 2 per cent
erest Per annum upon your bonds receiving nothing
N exchange beyond priority of interest all other
Dohus for i've years, but how this is TO be Sc
cured to you Is not stated
for your overdue interest to June 1, 1889. amount
ing 10 10 1S per cent. you TO receive in cash
" ~ per cent. In per cent bonds 1-2 per cent,
anu the balance in preferred stock.
The plan contemplates fixed charges Of 60 OLA 800.
ihasmuch as the major part OF the earnings is derived
rom The operation of that part OF the property upon
Mhch your bonds first lien, It would seem that
" "lance can be placed upon This estimate Of net
earnings no sufficient reason is offered why you should
Ioego your full rate OF interest Of per cent.
recognizing, however the desrabillty Of maintaining
The property, possible, in its integrity, your Com
'ee 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 dlmnutlOn Of IN
terest should be given to you in junior securities,
which would nure to your benefit in OF future
increase In the earning capacity Of the property.
The six and five per cent bonds Issued under tho six
per cent consolidation mortgage amount to at least
F'o'OVo per mile, involving payment for interest
much larger than be counted upon with safety
10 command confidence in its stability, plan Of re-
organization should reduce absolute fixed charges to a
point fairly within the earning capacity of the road
at all times. leaving the difference 10 be represented
10y an Income Bond Preferred Stock
The Interest dividends upon which would only be
paid If earned
IL no arrangement can be arrived at upon this
basis, 1t IS manfestly 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, NewYOrk.
Over SIX MILLION DOLLARS o. 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
million and a half dollars of bonds more to en-
able the Trustee to act.
1t is obviously the course Of wisdom for you to
strengthen the hands Of your Trustee, and 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-
ceivers 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 TO buy in the property for you
or to sell It for your benefit at its real value.
EDWARD KING,
WILLIAM LIBBEY,
2. GEDDES, Committee.
Il. FULTON CUTTING,
WM. A. READ
New York October 25, 1889