New-York tribune., 1910-07-30
PEARSON DENIES SALES
Says Big Railway Syndicate Was
Merely Extended"
BANKER DOESN'T AGREE
Insists Kuhn, Loeb & Co. Bought
and Discounts Reports of
Line to Pacific.

Dr. T. s. Pearson. head of the Pearson
Farquhar syndicate. which has sold the
bulk of its holdings Of Rock Island and
other roads, estimated TO be between s5.-
naea and SS0.e0O0oo. to an international
syndicate headed by Kuhn, Loeb & Co.
was quoted yesterday in an interview as
saving that the operations of the syndicate
had not ceased with the transfer of the
accumulated holdings TO the Kuhn. Loeb
syndicate. Other statements attributed 10
him tend 10 show that the original syndi-
cate had been merely extended by the in
clusion Of Kuhn Loeb & Co. Dr. Pearson
was also quoted as saying that he still re-
tsined his personal holdings of Rock Island
and Lehign Valley, and that. so far as he
knew. Percival Farquhar, who was once a
Tznmany Assemblyman had not disposed
OF any OF his holdings
When the interview was repeated to
banker thoroughly familiar with the trans
action he said Dr. PearSon's remarks must
have been miscorstrued. The facts of the
case were, he said, that powerful inter
national syndicate, managed by Kuhn,
Loeb s Co., and represented in England by
Sir Ernest Cassel, had privately purchased
large blocks Of stock in various railroads
from Dr. Pearson and his associates.
The deal, he said. as stated on Thursday,
had been accomplished primarily TO re-
move q menace TO the market The pur-
chases OF stock he added, carry with
them certain potentialities- The statement
that z new tTanscontinentaI railroad sys-
ten VIII be formed is an assumption. Moth
ing has been officially determined as to how
the syndicate viii use its purchases. The
roads in which an interest mas been ac-
CURED might be utilized for some such pur-
pose, although AZ the moment the pros
poets are that they VIII not"
Denies Canadian Holdings
ID The published interview Dr.. Pearson
was quoted as saying
TO begin with, I might as well tell you
taat there was not q single Canadian in
-erested IN The so-called Pearson syndicate
Neither Sir William Van Horne nor VIII
IAN Mackenzie put one dollar into the syn
cica-e. and they were not at any time con-
recred with It. as has been reported, nor
were any Of tie other Canadians men
toned"
IN regard 10 the membership Of the
original syndicate which bore his name, Dr
Pearson vas quoted as saying:
Some Of ny friends IN London and in
re-ests II Paris associated with Air
Far1uha- comprised the syndicate might
ssy that II Splitter. q large European bank
e- and E1arcieTs connected with the
Eareue de Paris and the SoClete General
ve-l interested II the syndicate
n was here thai Dr Pearson was made
10 say something IN conflict with what the
bankers Interested IN the latest arrange
uHur have given out He said. in speak
f1E Of Sir Ernest Cassel that his joining
forces with OUT syndicate viii be Of the
greatest advantage" He further stated.
according 20 the interview. that the two
French banks referred 70 were stiu inter
ested in Ii svnG4cate.
He was then made 10 say that the ne
ressity for the extension Of the syndt-
ate was The present bad market and the
high tension in Wall Street but that
there had been no calamity, and that he
@;iII retained his personal holdings in Le-
Ugh Valley and Rock Island preferred
snd that II Mr.. Farquhar had disposed Of
any Of his holdings he was not aware OF it
Says Pearson Lost Much
The banker already referred to smiled
when he saw this sta ternenL He said that
both Or Pearson and Mr. Farouhar had
had 70 tighten their load considerably, and
thar while they had not been wiped out
hoth being wealthy men. they had lost
considerabIe money.
Dr.. Pearson went to Toronto early IL
the day
Il was the belief n Wall Street yester-
dav-and the attitude OF the bankers inter
esIAd appeared 10 confirm the impression
that Dr. Pearson, and possibly PercivaI
FaTuUhar, were not entirely eliminated
from the situation. SO far al least as the
Rock Island was concerned. and that they
stiH retained enough stock IN that road to
trsU-e their retention as members Of its
board 10 which they Were elected last
winter Dr. Pearson was quoted in the in
tervlew referred 10 as saying i have To
intention OF leaving the Rock Island board.
and. 50 far as I know. Mr.. Farquhar. viii
remain also.
But whatever they may have retained Of
their personal holdings in the Rock Island
and other roads. II was stated on the high
est authority on ThUrsday-and the state
-1ent was reiterated yesterday in the same
Cuarrers-:hat the holdings Of the Pearson
Fargular syndicate had been taken over
ct bloc by the new International syndicate