New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-02-19
RAILROAD INTERESTS.
EIGHTING Jay GOULD HARD.
OPPOSITION TO REORGANIZATION OF THE IN
rERN ATIONAL MD GREAT NORTHERN.

OPPOSITION TO REORGANIhATION OF THE IN
TERN \TIONAL AND GREAT NORTHERN.
The application made on behalf of the Missouri,
Kansas and TeXa, Railroad Company FOR injunction
10 restrain the carving oE1 Of the proposed rcorsanza
lion scheme entered into by Jay Gould and the mort
gage bondhOler, Of the international and Great North
ern Railroad Company argued before Justice lnsIa
ham I'm the supreme COut. Chambers, Yesterday. The
International /, the hands OF a rece.vci and there
has been enormous amount OF litigation over the
property The bonded Indebtedness, OF the road amounts
10 about 1900 900. divided about equally between
first and second mortgage bonds. The capital stock Of
the road amounts 10 between 20 100000 and 10000.
600 This stock up 10 about four years ago. was held
entirely by the Missouri, Klnsl, ana Texas Company
On December l.. 1-c9. the last-namcd road entered
into an agreement with Jay Gould. the principal pro
visions OF which that for ten yeas there should
he traffic arrangement. that the Missouri. Kansas
and Texas and the Missouri Pacific Railroads should
each have fair amount Of the business OF the Inter
national at it, termnl: that one half Of judgment Of
100000 against the International held by Mr.. Could
should be assigned 10 the Missouri, Kansas ard Texas
road and that half of the stock of the International
should be transferred 10 Mr. Gould.
That was the condition of affairs when reorganiza
lion proposed Two schemes for doing this were
suggested one by Mr. Gould and the other by the Mis-
soul. Kan,a, and Texas directors. Mr. GOulIs scheme
for OF 10 per cent on the stock which
partly TO pay thc Interest the delaulted coupons
Of the first mort bonds The mortgage bOndIoidcrs
agreed 10 make certain concessions to carry out the
reorganization. The agreement between ,Ir. Gould and
the bondholders provided, among other things, that, II
the holders Of the stock not held by Mr. Gould person
ally did not wish TO come into the reorganization, Mr.
Gould might pay the amount Of their assessment and
take the amount Of their stock In the company.
Thus the stock Of the other holders would be wiped out
OF existence.
Tic Missouri, Kansas and Texas directors declared
that thi, would be accomplished BY foreclosure Of the
mortgage. which would not, i'm fact. be foreclosure.
becal,c Of the arrangement ictween Mr. could the
mortga bOndhOldrr, Thus, by n fOreclosur, in fDm
the International line would be- wiped out unle,, the
former road came into the scheme aud paid the
mcnt Of 10 per cent. and their Traffic agreement with
Mr.. could would b" defeated by the force o,urp. Nr.
Gould and the committee Of mort gugr bOndlolders d.
catci the other hand. that the only object Of the
Missouri. Kansas and TeNa. TO prOrct the ntiga-
tiOn ~ 10 cmharr1s> the International ~ II n
competing line They asserted That the proposed rOT-
ganizatlon WIS for the benefit OF all concerned.
In the argument. which lasted all daV. Joseph II.
Choat" and simon stern appeared for the Missouri Kan
>AS and Texas Wnsow :. Pierce for Jay Gould Her
bert H. Turner Everett p. Wheeler and Thomas &.
Sheauan for the bOndhOders. and A. II. Jone for he
Central Trust Company. Justice Ingiaham said he
would decide the next Tuesday.