Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1910-07-29
Important Rail-
road Stock Deal.

New York. July 28.-Now that the
sale Of the so-called Pearson holdings
in Rock Island, Lehigh Valley, Wa
hash. Missouri Pacific and Denver &
Rio Grande stock is confirmed, Wall
street was asking today what the
Kuhn, Loeb syndicate. the purchasers,
proposed to do with the securities.
DR.. F. S. Pearson and his British
associates acquired the stock late in
1909 and early in 1910 with the dream
of a vast trans continental system.
This plan must now be abandoned,
temporarily. at least. but the opinion
is divided as to whether it will be re-
vived under new and more powerful
guidance. One member of the pur
chasing syndicate said positively this
afternoon that I'VE have no plans for
new rans-continental railway sys-
tenn, and the purchase does not en-
brace control of any of the properties
whose stocks we have acquired"
On the other hand. another bankc:
concerned, said that DR.. Pearson's
project would be shelved only for the
time being While the primary object
of taking over the holdings. he said.
was to save an awkward market sit
Loeb & Co. and their friends, including
some of the most important banking
interests in Germany. would seek to
carry out the idea, too big for the
Pearson group to swing.
Notwithstanding. the sale. there is
apparently no disposition on the part
of the bankers syndicate to dispense
with the services of Dr. Pearson and
his English associate. Percival Farqu-
hara. both of whom are likely to re-
main directors of the railway COM
oanies concerned as heretofore. The
American members of the syndicate.
acting with Kuhn. Loeb & Co., include
the First National Bank. Morgan in
"titution. but the Morgan banking
house itself. it is empratically declared
is in TO way party to the syndicate
1t is believed. however, that the
Kuhn, Loeb syndicate will ere long sell
TO J. P. Morgan & Co.. its newly ac-
quired Lehigh Volley holdings. so that
the road will remain in the hands of
the Drexel. Morgan interests. where it
has always been.
New York, July 2S.-While Kuhn, Loeb
& Co. made no official announcement to-
day regarding the developments whereby
the holdings of syndicate in Rock Is
land. Lehish Valley and Missouri Pacific
stocks were taken over to prevent fur
ther serious liquidation. the company in
connection with English interests head
ed by Sir Ernest Cassel has secured the
largest single holding of Rock Island,
both common and preferred. The syndi-
cate is said to have been made up of Ca
madam and English operators with Eng
lish connection headed by DR.. F. S. Pear
son. and had as its aim a new trans
continental group. The decline in the
market upset the plan and necessitated
a turning over of the stocks purchased.
Additional details concerning the TAX
ing over of the so-called Pearson syndi-
Gates holdings were obtainable today
The amount of the stock transferred
shares. The amount of cash paid by
the bankers is probably from s12, 900 600 to
100000. or little more than half the
sum the Pearson syndicate is believed to
have expended for its disastrous expe-
rienCe.
Concerning the ultimate disposition of
the various securities acquired by the
new interests, member of the syndicate
said:
"All we care to say is that the trans
action has been closed and the stocks
formerly held by DR.. Pearson and asso-
ciates are now the property of a group
of influential American and foreign bank
ers.''