The sun., 1908-06-10
road between s4Oo0,OOo and 5000 900.
! which represents q dividend.


But resumption Ia here, he added. -The
people havo awakened to what It means to
hurt great properties and they realize that
they have been imposed upon. do not
know whether all legislators have come
to the same realization, but you might ask
Hoke Smith.
The false sentiment aroused In the public
mind through vicious leglslatlon not only
destroyed the credit Of large corporations
and the country In general. but In the case
Of the Missouri Pacific In particular II was
responsible for great reduction In the pas
ssnger and freight earnings and for an un-
necessary increase In wages.
81 do not think the public wants to bs
unjust. When II realized that 1t had been
deceived and that the false sentiment was
injurng the building up Of the country and
the construction OF now railroads it set to
work to restore confidence and to calm tho
storm the Legislators had raised. The
country needs new railroads and 1t Is not
possible to build new roads without capital.
To get capital capital must be treated we'll
F., Az Delano. president OF the Wabash
and OF the Wheeling and Lake Erie. was
present while Mr.. Gould talked and subse-
quently gave expression TO much the same
opinions. incidentally Mr.. Delano denied
very emphatically recent rumors Of Diff
ference Of opinion between himself and
MI. Gould 1t was apparent from these
expressions that all was peaceful inside
the Gould railroad family as well as between
it ard its neighbors in the railroad world.
f. 7. Jeffery. president OF the Western
Pacific and one Of Mr.. Gould's closest coun-
sellors. said that tho April earnings ol the
Wheeling and Lake Erie fell off 55 per cent.
and the April earnings of the Wabash
Pittsburg Terminal IS per cent. Neither
road earned its operating expenses in that
month. Although the directors OF both
roads have not met and taken formal 40
tion he predicted the merger of the Wheel
ing and Lake Erie and Wabash Pttsburg
Terminal under Wabash control.
1t is understood that the Wabash will
either pay or supply new security for the
IS, O00, 600 Wheeling and Lake Erie notes
maturing August l, The notes are secured
by sl2,O0o,0 600 general mortgage bonds of
the Wheeling. and If the Wabash takes
care OF them it may usc these bonds as the
basis for forec!oslre action. In case of
n foreclosure tho entire $37 .00O. 900 stook
might be wiped out but it is believed that
this will be avo led by an agreement with
the minority stockholders. The Terminal
company owns 81 per cent. of the stock.
but the Wasbash through it's holdings Of
bonds could control ,bs road with the stock
wiped out.
Informal conferences concerning reor-
ganization committees and protective COM
mittees were held yesterday, but it is not
expected that definite action will be taken
this week unle 81 something is done by the
minority stockholders of the Wheeling and
Lake Erie. Very likely the committee of
first mort gage bondholders of the Wabash
Pittsburg Terminal will act as committee
for the holders of Wheeling and Lake Erie
securities in case there In a default in the
latter. The receivership was brought on
however by floating indebtedness rather
than by default in interest payments, and
in case the Wabash assumes the s., ,0OOo 600
notes there is little probability of default
in interest. At any rate. in all quarters OF
the financial district yesterday confidence
was expressed in the success of plan for
reorganization Of the Wheeling and Lake
Erie and the Wasbash- Pittsburg Terminal
under Wabash control.