The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-02-29
RAILROAD NEWS.
No Danger of Missouri Pacific or
Iron Mountain Receivership.
Other Gould Roads Will Not
Follow I. & G.. n.
GOULD'S STATEMENT.
Lays Blame on Texas Commits
siOn's Recent Orders.
Other Items of Interest In
Railway Circles.
GOULD'S STATEMENT.

George J. Gould, president. and G. 8.
Clarke, vice president, Of the missouri
Pacific and Iron Mountain system. yes
terday reiterated the statement that
there is no danger of this roads becom-
ing embarrassed. Officers of the Wa
bash declared that there is not the least
danger Of this road getting into trou-
BILE.
Financiers and railroad men have
long regarded as more or less absurd
the rumors that the Missouri Pacifio
and Iron Mountain system might De
forced into receivers hands Th1s Is
Gould's holding company, the mainstay
of the Gould system Of railroads, and
Mr.. Gould would concentrate all his re-
sources to support and strengthen IT.
The only reports now in circulation
indicative of trouble to the Gould In
terests is that the Texas & Pacific and
the wabash Pittsburg Terminal may go
the same course as the International &
Great Northern.
But, though either of these roads
should be put in receivers charge for
protection, the procedure would have
no effect on the affairs of the Missouri
Pacific and Iron Mountain system, the
Wabash, the Western Maryland system,
the Rio Grande system or the Western
Pacific, which are the other Gould prop
critics.
Mr. Gould yesterday transmitted the
following explanation of the Interna-
tional & Great Northern receivership to
Vice President c. S. Clarke of the Mis-
souri, Pacific and Iron Mountain sys-
tenn, and particularly requested that 1t
be given publicity:
THE receivership Of the International
& Great Northern railroad should cause
no surprise, and is due to conditions
and reasons almost entirely local. While
q ~ o1T17nGf f
ed falling off in revenue, due to the
business depression prevailing in Texas
and elsewhere, and affecting every
branch Of industry, this alone would
not have caused the action now taken.
'At time when revenues are the
1eanest and business is at the lowest
ebb the company is called upon by the
state commission to make additions
and improvements to its fixed and roll
ing plant and revisionS of its property,
involving the expenditure of several
millions Of dollars, and to proceed In
these expenditures upon a schedule pre-
scribed by the commission without re-
gard to current revenues are the ability
of the company to secure funds to meet
the expenditures.
These orders have come on top of a
decrease in gross earnings for the last
four months of 1889. 900. or a decrease at
the rate Of nearly $4,000, 900 a year. 1t
HAS USSA l4ROSS4Dl6 " IOOuC0 cApCuocS
anywhere near proportionately. Even
were the earnings as large as formerly,
they would not provide for these extern
sive and immediate outlays, and the
laws of Texas do not admit, even If
financial markets did, of the issue and
sale of securities to do the work re-
Quired Of the company.
In view Of the foregoing it seems as
II, for the conservation of all interests,
It was necessary to seek the protection
of the court, where all interests can be
properly represented and protected and
which can justly determine all ques-
lions at issue.
What I have said is not intended as
any criticism of the Texas authorities,
or of their action. I merely state the
situation, and have every confidence
that the best results will be accom-
p1shed. and that the interests of the
public and security holders will be fair
~ adjusted and properly and per-
manently protected by the course that
has been pursued"