The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-07-29
Pearson Holdings Of Rock
Island Are Purchased
DEAL WILL AID MARKET
The Kuhn-Loeb Syndicate Is Purchaser
and 1t Is Believed That Part of
Holdings VIII Go to j. p.
Morgan & Co

New York, July 2S.-Now that the sale
of the so-called Pearson holdings In ROCK
Island Lehigh Valley. Wabash, Missouri
Pacific and Denver and Rio Grande
stocks is confirmed, Wall street was ask
ing today what the Kuhn-Loeb syndicate,
the purchasers, proposed doing with the
securities.
DR.. T. d. Pearson and his British as
sociates accumulated the stock in 1903
and early in 1910, 1t is said, with visions
of a trans-continental railroad system
The plan must be abandoned temporarily
at least, 1t Is asserted. Opinion is divid-
ed whether it will be revived under new
and more powerful guidance.
One member of the purchasing syndi-
cate said positively this afternoon that
there were no plans maturing tentative
or otherwise for a trans-continental rail-
road system and added that the purchase
did not embrace control of the proper
ties outright whose stocks have been
acquired.
Another banker. on the other hand 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 awk-
ward market situation, yet he was OF
the opinion that Kuhn, Loeb q Co., ana
their friends, including some of the most
important interests in Germany would
seek to carry out the idea which was too
big for the Pearson group to undertake.
Notwithstanding the sale, there is said
pn
of the bankers syndicate to dispense with
the services of DIR. Pearson and his Eng
lish associate, Percval Farquhar, both
of whom are likely to remain directors
of the railway companies concerned as
heretofore.
The syndicate acting through Kuhn,
Loeb & Co., includes the First National
bank, a Morgan institution, but the bank
ing house, itself, 1t is emphatically de-
clared, is In no wise a. party to the syn
.sica4e. II lis believed, however, that the
k,,hn-Loeb syndicate wiir before long,
sci, to J. p Morgan & Co., its newly
ACQUIRED Iehigh Valley holdings, SO that
tho road will remain in thu hands OF
the Morgan-Drexel interests, where 1t has
always lain.
Additional details concerning the taking.
over of the so-called Pearson syndicate's
holdings were obtained today
The amount of the stock transferred
amounts to several hundred thousand
shares. The amount Of cash paid ny tne
bankers is probably from $12,O00,000 to
s15 OOO 900 or little more than half the
sum the Pearson syndicate is believed to
have expended for It's disastrous expert
ence.
Concerning the ultimate disposition OF
the various securities acquired by the
new interests a member of the syndicate
said "All we care to say is that the,
transaction has been closed and the stocks
formerly held by DIR. Pearson and asso
ciates are now the property of group
of influential American and foreign
bankers. The transfer gives the syndi-
cate a very substantial interest in sew
eral important railway lines, but we can
not say at this time just what will be
done, except that the stocks Will not be
placed on the market"
Kuhn Loeb e. Co. are the recognized
fiscal 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.
speyer & Co. are the Rock Island bank
ers. and there is no indication that they
will offer any objection to the new inter-
ests in that system. J. Pierpont Morgan
e. Co., through the1r fnliaueiphia pranci
of Drexel & Co., are dominant In Lehigh
valley. The Morgan Kuhn-Loeb relations
are altogether friendly, and 1t is quite
likely that the latter will be given repre-
sentation In the Lehigh directorate.
According to substantial rumors cur
rent in the financial district the Pearson
syndicate was not the only overextended
interest taken In hand recently. Some OF
these rumors deal with interests and in
div,duals more or less prominent In the
Rock Island-Lehigh Valley Wabash COM
bination but they lack confirmation In
authoritative quarters.