The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1910-07-28
PLAN IS BLOCKED.
Projected Rock Island Trans
continental Railroad Line
Receives Setback Through Stock
Market Manipulation.
is FORCED TO SELL.
Syndicate Parts With Holdings
to British Investors.
Intentions of New Holders
Wrapt in Uncertainty.
S FORCED TO SELL.

New York, July 2S.-Although Kuhn,
Loeb & Co., made no oeofficial, announce
ment today regarding the develop
ments whereby the holding of a syndi-
cate in Rock Island Lehigh Valley ana
Missouri Pacific stocks were taken
over to prevent further serious Iiquida-
ton, the company in connection with
English interests headed by Sir Ernest
Cassel has obtained the largest single
holding of Rock Island, both common
and preferred. The syndicate is said to
have been made up aof Canadian and
English operators with English connec-
tionss headed by Dr. E. 81 Pearson and
had for its aim a new transcontinental
group The decline I'm the market upset
the plan and necessitated turning
over of the stocks purchased.
The block of Rock Island carries con-
troll of the property and is accompanied
by the Pearson holdings in Lehigh' VAL
ley. Wabash and Missouri Pacific.
Whether the transcontinental plan
will be carried out by the new Rock
Island controllers or whether the new
interests will assert their power in al
tering the present management still de-
pends on unsettled factors.
Certain banking interests here have
looked on the original Pearson plan
with favor, and it Is not unlikely that
steps will be taken to carry 1t out
1t is pointed out that while the Pear
son syndicate could not have fnaugur-
ated a transcontinental system, except
by getting an actual preponderance Of
stocks involved, the new holders
through associations should be able to
effect the practical union of the various
properties with little further outlay OF
capital
member of the new syndicate. repre-
sents one of the largest. If not the
largest single financial interest of Eng
land, and it is stated on good authority
that the new Rock Island interest took
over the stock in question for the pur-
pose of permanent Investment.
Big Deal In Lehfgh.
Philadelphia, July 2S.-The heavy
dealing in Lehigh Valley stock Wednes-
day was still In evidence when the
Philadelphia exchange opened today.
The stock opened sstrong at IL as
against 66ss at the close Wednesday,
Isehigh Valley warrants sold at Il
More than so, 500 shares of the stock
changed hands in the first ten minutes
of business, in fact practically all the
early trading being in Lehigh Valley
stocks Continue to Advance.
New York July 2S.-There was, an
other violent rise in prices of stocks
today in further rebound from the ex-
cessive depression of last Tuesday The
recovery was stimulated by the circum-
stantial reports of the taking over by
an international banking syndicate Of
the holdings of an embarrassed interest
which had over extended itself in an
attempt to control a new transconti-
mental railroad combination. The re-
moval of large amounts of securities
overhanging the market found a large
short interest uncovered and counting
on a continuance Of forced liquidation.
The urgent demand was supplanted by
investment demand from foreign and
domestic sources.
The active list of stocks had risen
from to 4 points over Wednesday s
closing prices in the first hour.