New-York tribune., 1910-08-13
PEARSON ASSOCIATE HERE
PercivaI Farquhar Denies Story
of So-CaIIed Syndicate.
MO BIG RAILROAD SCHEME ON
I,ondon Banker of Former Tam
many Assemblyman Cor
roborates Statement.


so-caIled Pearson syndicate, OF which he
was said to be g prominent member,
was forced to transfer its accumulated
holdings of Rock Island, Lehigh Valley.
Missouri Pacific and other railroad
securities TO an international syndicate
headed by Kuhn, Loeb & Co. arrived
here on the steamship Lusitania yester-
dav. looking far from broke"
He occupied the regal suite on the
Iusitania on the trip over, and his man
ner was that of a man who had been
e,,,jnentlv successful in his undertak-
inps rather than one who had been
hadly squeezed in the stock market and
had saved himself from bankruptcy only
nv selling out his holdings at loss Of
millions. as the reports have had it
Mr.. Fa-olli1ar characterized fan
tastic the stories that have been pub
lished about him and his associate, DR..
2 :. Pearson, and their alleged plans
for a transcontinental railroad system,
and said that the figures that have been
printed Of the amount Of the holdings Of
himself and associates in the Rock
Island and other railroads were also
fantastic.
MY investments In American railroad
securities were a minor matter With
me" he said. Most Of my interests are
in South America You can deny in the
most emphatic manner the existence of
anv syndicate known either by the name
Of Pearson or otherwise. The purchases
made by myself and my friends in the
roads were made purely for investment
purposes, and were with a view to de-
veloping principally the Rock Island
p-operty. They were all individual hold
ings; there was 10 understanding in re-
gard TO them. and the amount Of the
holdings Of each individual was known
only to himself
Calls Wall Street Tales Fantastic.
TT may be a coincidence that the
properties in which We were interested
formed q more or less direct line Of con-
nection between the Atlantic and Pacific
coasts, but Il was absurd to say that
there was any concerted action TO OBJ
tain control Of a transcontinental chain
Of railroads by body Of Englishmen,
70 say the least At present market
prices Of the properties mentioned in
this connection, that would be gigantic
undertaking. The very magnitude Of
the proposition should have been suffi-
cienr denial that such a consolidation
was ever contemplated.
There was no intention on the part
Of the English and other foreign in
vestors interested with me TO control any
Of the American railroads. In the Vari-
Gus fluctuations Of the market in Aneri-
can securities it sometimes occurs that
heavy realizing is necessary. Such may
have been the case when the recent big
break in the market here took place.
Wall Street has TO have a reason for
everything, and in this instance it took
the form Of the so-called Pearson syndi-
cate going 10 the wall The truth prob
ably was that q number of individual
holders found it necessary TO let their
stock go, but of course the more fan
tastic story appealed to the public
In reply TO a question M. FarQuhar
said he was still interested in the Rock
Island Company and expected 10 remain
g. member of the board of directors.
South American Railroads.
His coming here at this time, he said
was for the purpose Of purchasing sup
plies and looking after the construction
Of some railroads he was building in
Brazil Between Rio de Janeiro and
Buenos Ayres he said, he and his asso-
ciates have a system Of connecting lines, |
2.7GG miles Of which are now in opera |
ton. They also have q controlling in |
rerest IL 2000 miles more and have 900 /
miles additional under construction In /
connection with this railroad he said |
further that he was about to make two |
issues Of bonds, one of S0.0o0,000 francs. |
10 ne f4oated in Brussels and Paris, and |
the other of Il 100000 TO be offered in |
London
Speaking Of financing his various en- /
terprises in South America. Nr- FarQu-
har said that he always went to. Europe /
for his money. as it was useless to seek
capital here
America" he said will not be ready
to furnish money for foreign enterprises
OF her Western railroads shall have been
completed. Mr.. HiE has showed that I
for some time 10 come this country VIII |
need all its spare capital for its own rail
roads"
II was pointed ont to Air. Farquhar
that an American syndicate was getting
!eady to spend 500 100000 in railroad
and mining development in Turkey.
You can rest assured he said in re-
yiy. that they viii raise the money in
Europe They viii isseue bonds, and
the bonds viii he sold in Europe They
viii moi Try to place them here"
Calls on Kuhn, Loeb &. Co.
MT. Farquhar had conference with
Kuhn. Loeb & CO. late in the afternoon
He admitted that he was interested in
the huhn-LOeb international syndicate
but would nor say 10 what extent nor
would he give any intimatior as IN tho |
amount Of Rock Island, Lehigh Valley
Missouri Pacific and other railroad
stocks this syndicate had ACQUIRED
You viii have TO get that inflammation
from Kuhn. Loeb &, Co" he sai6 ..rf
they give you the figures you will find
that they are not nearly SO large as
those already ,,yGp+ed