Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1910-07-29
ROCK ISLAND PASSES
INTO CONTROL Of
ENGLISH INTERESTS
Syndicate Headed BY English
man Takes Over Big
Block of Stock to Prevent
Further Serious Liquidation
PLANS OF NEW INTERESTS
NOT YET MADE KNOWN
CBy Associated PressO

NEW YORK, July 2S.-While Kuhn,
Loeb & Co. made no official announce
ment today regarding the developments
whereby the holdings of a syndicate in
Rock Island, Lehigh Valley and Missou-
ri Pacific stock were taken over 10 pre-
vent further serious liquidation, the
company in connection with English in
terests headed by Sir Ernest Cassell, has
secured the largest single holding OF
Rock Island, both common and preferred.
The syndic ste is said to have been
made up of Canadian and English opera
tors with English connections, headed
by DR.. F. E. Pearson and had for it's
aim a new trans-continental group.
The block of Rock Island secured car
ries control of the property and is ac-
companied by the Pearson holdings in
Lehigh Valley. Wabash ard Missouri Pa
cific.
Whether the trans-continental plan
will be carried out by the new Rock
Island controllers or whether the new
interests will assert their power in al
terlng present management still de-
ponds on unsettled factors.
Sir Ernest Cassell, the chief foreign
member of the new syndicate, represents
one of the largest. If not the largest,
single financial interest of England. aad
it is stated on good authority that the
new Rock Island interests took over the
stock in question for purpose OF perma-
nent investment.
s15,OOO,OO0 CASH.
Additional details concerning the taxi
ing over of the so-called Pearson syn
dicates holdings were obtained today.
The amount of the stock transferred
amounts to several hundred thousand
shades. The amount of cash paid by
the bankers is probably from N2,O0O,00O
10 isis, 900 or little more than half
the sum the Pearson syndicate is be-
lieved to have expended for its disas-
trous venture. Concerning the ultimate
disposition OF the various securities
acquired by the new interests, a men,
Der of the syndicate said: "All we care
to say is that the transaction has been
closed and the stocks formerly held by
DR.. Pearson and associates are now the
property of a group of influential Amer
lean and foreign bankers. The trans
fer gives the syndicate very substan-
Lal interest In several important rail-
way lines but we cannot say at this time
stocks will not be placed on the mar
ket.'
Kuhn, Loeb & Co. are the recognized
financial agents of the Gould roads, but
the Gould interests, 1t may be said, are
in no sense parties to the transfer of
the Pearson holdings. Spier & Co. are
the Rock Island bankers and there is no
indication they will offer any objection
to the new interests in that system.
MORGAN INTERESTED.
j. Pierpont Morgan & Co., through
their Philadelphia branch of Drexel s.
Co, are dominant in ehigh Valley. The
Morgan-Kuhn-Loeb relations are alto
gether friendly and 1t is quite likely that
the latter will be given representation in
TIE Lehigh directorate. According to ru-
mors current in the financial district
the Pearson interest was taken in hand
recently. Some of these rumors deal
with interests and individuals more or
less prominent in the Rock Island-Le-
high Valley-Wabash combination but
they lack confirmation in authoritative