The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-07-29
II Was PercivaI FarquhaT.
TAM, Who Dared An
the Big Systems.
PEARSON SYNDICATE GENIUS
Hes Eliminated Now and Otto
Kahn Is Sitting on a Hay
stack of His Certificates.

w ~ Iearson, ferciVal farQunar ana
their associates hoped TO gain control %
an American transcontinental railroad
system stood out in even holder relief
when more of the facts became known yes
tsrday. Their OPERATIONS were on an oven
greater scale than at first reported Alto
Rether long before the resources Of the
syndicate were i'm haired they had bou sht
stocks u the roads in the proposed system
shares and representing cash payments
" quite SO. 900 600
The figures only hint az the ma ghituds
u the undertaking. In the course OF the
development Of the scheme the adven-
tuners must perfOrc- have encountered
every big group Of financiers and most II
the powerful railroad systems in the
United States In securing control of
Rock Island they must have had a hitter
contest with Judge Moore and ID. @ Reid.
men Who in st least one bitter fight got
tie best Of Hartman. In developing
Lekigh Valley according to their plans
they must have incurred the hitter hos
tility Of the Reading. Jersey Central.
LackawanDs and ETie In giving Wabash
an outle' 20 the coast they could have had
. joyous battle with the New York Central
system on one side aud the Pennsylvania
on the other. TO saw nothing Of the other
trunk lines ike Baltimore and Ohio.
In the West they threw down the Kaunt-
let hrst 20 the Goulds. from whom they
proposed 10 take their choicest posses
sions. They dsdsined the power 81
James J. Hill Who doe>at want any
transcontinental system while he con
trols the Great Northern. Northern Pa
cIfic and Burlington. Finally they rocked
not OF the wishes - the richest OF all
systems. Union Pacific. with which they
proposed TO open a sharp struggle. nor
did they seem 70 take into the reckon
ing the bankers for the Union Pacific
and Pennsylvania. Kuhn. Loeb A Co.
INTO whose hands the syndicate finally
fell
As the transaction stands now, though
DR.. Pearson and Mr.. Faruuhar retain
"a diminished interest in the securities
which the syndicate bought. Kuhn. Loeb
A Co have absolute control OF them
and Otto II. Kahn the banker, who Va.
Harriman's most trusted adviser and
closest confidant. IL sitting on the lid OF
the strong box wondering what he will
do with them.
IL may lie stated authoritatively that
up Ia the present Kuhn. Loeb a Co. con-
slider the matter a. a banking transao-
ton and have no plan for using the varis-
gated assortment Of securities for rail
road agRrandizsmsnt The syndicate
headed by them has as its principal Eng
lish participant Sir Ernest Cassell, oftsn
regarded AZ the fiscal agent and adviser
~ the Crown. Other foreign houses 81
high standing are members. All %
them. like the New York bankers, have
diverse interests in American railroads
and Il may he taken as assured that mons
OF them desires at this time any disturb
Rnce % the cordial relations existing
among all the important railroads and
bankers Of this country. Weighty and
difficult problems confront all the rail-
roads. and the mana gers OF all systems
are fully occupied with these.
The explanation IL given that II was
TO prevent trouble in the railroad world
and to restore to normal conditions a
stock market badly demoralized ~ N.
Pearson Farquhar liquidation that tbs
securities were taken over. IL was so far
purely and simply a banking transaction.
Nevert heless now that the securities
hsv. been takcn over the syndicate
finds itself in control Of block OF Rock
Island said To be greater than the Moors-
Reid holdings n large lice Of Lehizh
Valley and stacks ot Wabash and Missouri
Pacific that are probably big enough TO
call the Goulcs
The holdinH- have potentiaIitiAs
so IL was ag'horii aiively declared yestsr-
dHv. They could not affect control %
Iehigh Valley. but they ght eventually
produce a dominant voice in Rock Island
aud combined with other interests IN
Wabash and Missouri Pacific might change
hose roads. and particularly the Gould
Pacific Coast extension. into close allies
VI the Union Pacific. But no plan what
ever ia any Of these directions ~ con-
I emplated. Now and undoubtedly for a
long time TO come the holdings will simply
stand for peace in the railroad world
aud stability in the markets for railroad
securities
A. tho sudacity of the venture Ioomesi
Ip more boldly yesterday il became
known that the enturesoms one Of tho
~ indicate leaders was not Dir Pearson.
he celebrated engineer and builder, but
PerOival Farquhar. generally supposed
TO have been a dull English follower Of
The brilliant enginesr. II was he not DR..
Pearson that supplied the imagination.
and one OF the bankers Who dealt with h,n.
declares that his ma gniation was ast ound.
ing.
Mr. FarquhAr ia a native born American.
a college man and q club man who IA h
early days was rammany As-enblyrsr
Wall Street speculstor Snd man abn,.
town. and later a soldier ~ fortune ,r
South America. a promoter oi sow