New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-06-04
KANSAS AND TEXAS INCOME BONDS
REPLIES TO RECENT EXPLAINING III
pnL1CY OLE Tile COMP Any.

REPLIES TO RECENT ATTACKS EXPLAINING THE
POLICY OF THE COMPANY
Recent Wall street attacks on the securities OF the
Missouri Kansas aud Texas Railway have aroused con
siderable discussion TO the status OF the company
bonds. In response To inquiries, John 1reenough Vi
Poor & Grcenough in the absence Of his partner Mr.
Poor who is a member of the Executive Committee OF
the yailroad. yesterday made the following statement
"Thc income mortgage differs from most of such in
strumcnts in dividing the period for income returns
into six months instead Of one year. This method
will be continued for three years ensuing. until
,uc,st : 1898. After that date the coupons become
Obligatory and the efforts Of the present management
have been directed to make II certain that In tme 10
come the necessity shall be obviated OF another Ie"r
ganizaton and place the company upon s'ich OASIS
a T., insure the payment Of every fixed obligation.
Hence the character and condition Of the road Is being
constantly improved steel rails substituted Tor lron
iron bridges for wood. and the track ballas'ed anu
efficient equipment provided. BY such means the rano
N, operatinC expenses will be reduced TO make
the net returns permanent ana regular The hrst SIX
months period Of the present management ehded DC
cember 81, 1901, and showed gross earnings Vi
81 go 900 and net earnings OF 5l,126,oOO Inc hAeo
charges were 1925 900 for first mortgage ana rentas
and 800 900 for the second mortgage, showing cash
.urpus of 10000 over and above both OF these
Moreover. 100000 had been spent in the interval
- that actnaly 100000 remained from the winter
.ix months This surplus Is being expended upon
the property improving its condition. to the Deheht
Of the p.opretors and although it IS not practcaoie 10
divide II among the holders OF the income mor'e'so
hond, vet the same result IS accomplished BY spend
Ing it upon the property namely, by enhancing ,ho
value Of the subordinate securities.
A. 10 the result, Of the summer period, ending
June 30 we have nothing az present 10 guuc US ou'
c.oss earnings, which for the six months VIII evil
IDENTIFY be about 81 100000 Clearly the net prom
from these six months will not be as great as lIom
tho former earnings ~ S5.bOOoOo But In ProPVVrpI
as economies II operation arc ln'rnisr, % VAL
inrnm. bOndholdcls come nearer 10 the lult ~, tI'
even for the lean periods Of future years Inc mort
cage provides that whatever part OF the coupon can Dc
raid nom the income Ot the six months must Us us
trlutcd and the management mas gwen p"cd ti, AZ
sur,ur,, that whatever amount Is 80 edfntH VIII pc
dIyded II any doubt exists with regard 10 tho
cnunon ~ this summer would seem 10 be the Only
one In doubt For the winter coupon may al"a,s ~ ~,
L. upon "A large surplus for it, prdeyt0n. ana oy
next summer the road VIII have had the benefit OF
large expenditures from the suIpms OF last war'v y,
and of tho coming autumn. II Il only necessary W
perfect the plant that IL may eale BOO d5 pr 80
sye, fr,n Inc summer earnings OF T'i2oo,oOo Broo'
TO enable full payment of both mortgages