The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1911-03-13
that it would injure the interests Of
the Southern Pacific.

that II would lnJure the interests Oh
the Southern Pacific.
About this time considerable legisla-
ton adverse to the railroads was en-
acted in several of the western states
and on account of his lack Of railroad
training Gould was not equal to the
situation. The stocks of his various
companies were boycotted in Wall
street on account of the methods
which had characterized that end of
his business. Gould was nov hard
pressed for money. His Wabash
Pittsburg terminal had been over cap
italized, and ruin seemed inevitable.
The crash came with the panic of
1907 which destroyed forever his
trans-continental dream. Four Of his
roads, the Western Maryland. Wabash
Pittsburg terminal. the Wheeling and
Lake Erie. and the International and
Great Northern. which ran into Texas,
went into the hands of receivers with
in IA period of one year.
He did not give up, however. but
on the contrary began a new scheme
to recuperate his properties. His first
step was TO patch up his differences
with Hartman. which was accom-
plished by the arrangements OF the
Western Pacific to be operated on
amicable relations with the Southern
Pacific. Another plan adopted for
raising funds was to cut Off the divi-
dends from the Missouri Pacific and
turn back all earnings into the COM
paAy. Gould himself was not adverse
to sacrifices and did not accept one
cent salary from his work as president
of the road. About this time it was
who were agents for the Hartman
road had underwritten some $4,000
900 of the Missouri Pacific bonds.
II was in 1909 that another of the
| Gould properties passed out Of the
control of that family. This was &C.
casioned when the American Tele-
graph and Telephone Co, took over
the Western Union.
An inkling as to the railroad situa-
ton was given during last summer
when the Pearson-Farquahar syndi-
| cate which had been organized for the
purpose Of gaining control of the
transcontinental road went to smash.
Among the many securities of which
they held were large blocks of Mis-
souri, Pacific and Wabash. These Sc
curities were taken off their hands by
Kuhn. Loeb 4 Co. With such large
interest in the Gould roads it became
very evident that this banking house
would desire voice in the control of
the affairs of so valuable a property
as the Missouri Pacific. George
Gould's methods of railroad manage
ment had been discredited for many
years and when the demand was made
a few weeks ago for the list of stock
holders ii became known at once that
the fight 10 Gust George Gould was on.
Gould. however, realized the weak
ness of his position and agreed to
present his resignation at the annual
meeting of the stockholders on Tues
day. An expert railroad man of wide
experience will be appointed chairman
OF the board of directors. The retiring
members of the board of directors are
Frank ]. Gould. Howard Gould Charles
5. Clarke. ii. b. Wenson and f. NJ.
Galloway all representatives of the
Gould interests.
Mr.. Gould will still have a voice in
the affairs of the company, but it will
by no means be the dominant one. His
eastern properties now in the hands
of the receivers will be operated, il is
said a. separate companies.