New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-08-05
"katy'' Road May
Issue New No
Par Y alue Stock
Reorganization Plan Nears
Completion; Government
Operation Causes Loss
of 81, 1872, 900 in 1920

The reorganization plan OF the Mis-
nuri. Kansas { Texas Railway Com
.nv has reached the stage Of final ne
yotiation. and il was reported in well
Informed quarters Yesterday that
feature Of the plan viii be the issuance
Il new no par value stock. Represen-
ctiges Of the reorganization managers
stated, however. that this matter had
not YET been definitely decided al
though such 3 change in the capital
structure is permitted by the states
through which the Katy" travels.
The companys annual report for
1920, made public yesterday. showed
hat on December 81 last there were
Outstanding Sl15156,00O bonds and
g5256,000 notes. These include about
.ysnty-six different issues, among
shch the second mortgage bondhold-
srs are seeking more favorable terms
in the reorganization than IS now con-
I,mplated. A considerable part of the
srs. mortgage bonds are held in Hol-
!and Originally II had been sugge sted
Tia. the reorgan Laii0n be carried out
through the foreclosure of this mort
gsge ard the creation OF an entirely
rev financial structure on the founda-
ion Of the railroad PROPERTY itself.
Now it is understood that, being IN
abIe to get the first mortgage bond
holders IN on = previous reorganiza-
Ten plan, the plan under discussion
:an.emplates foreclosins the second
mortgage. This assumption IS borne
gu. by the fact that default has been
allowed on the second mortgage bonds
r,I al /.
payments have been only deferred" on
the arst mortgage bonds and four
branch line and terminal bonds.
The security behind the second mort
gage bonds IS direct lien on the main
line. subject only TO the first mortgage
bonds.
The Missouri, Kansas & Texas was
operated for the first two months Of
1870 by the United States RAILROAD ad-
minis.ration. IL the next six months it
Vas operated by corporation officers
under guaranty Of net operating in
tome. In the last four months it was
operated on its own possibility.
In the ten months of 1920 total oper-
sing revenues amounted to $50, 713.0 900
This compares with total operating rev
sn5ss for the entire twelve months Of
Hls Of S6l825 goo Total operating ex-
Fsnses for the ten months OF 1920
Esfe $500 600, comparing with opeT-
sting expenses for the entire twelve
saa.hs OF 1919 Of $50, 9sT, 600. Operat-
ag income for the ten months Of 1920
.-aaased to S2.977, 600, comparing with
s,lA,oO0 operating income in the en-
TIE twelve months OF 1919. It viii be
asss, therefore. that the net loss, after
n'srest charges, rentals and so on. re
E.ied for the fall twelve months OF
1929 Of $780, 600 vas due, in large
par 10 losses sustained in the govern
ssas operation Of the property in the
inst two months Of 1920 Prorating
,as loss, the government operation for
ne two months was responsible for
A's2,o0y loss, whereas the corporate
eFsrat'on for the full ten months re-
salted IN loss, after charging interest
3D. rentals, Of g 500 COO
Me- operating revenue Of the Missouri.
sss'as & Texas in May, 1921, was
s.lsAoo. comparing il with sl9T 900
ssnei; IN May. 1920 For the Arst Ave
aos'as Of 1921 operating income was
sgproxinatelT $4,000 600. comparing
sssa a deficit after taxes IN the frs.
I'VE months e 1920 e $4,000.