The Washington herald., 1911-04-19
B. F. BUSH HEADS
MISSOURI PACIFIC
Two Directors Resign After
Fight in Board.
CHARGE GOULD BROKE FAITH
New Members Oppose BuSh-Com-
mittee Report Disregarded-GouId
Faction Wins-Warburg and Van
. derbflt withdraw-Plan Road De-
velopment-FOreiEn Defeated.

New York, April 1S.-A long and bitter
controversy over the selection Of a new
president at a meeting of the board of
directors of the Missouri Pacific to-day
ended in the election of B. F. Bush,
president of the Western Maryland and
Gould man; in the resignation Of Paul
| NJ. Warburg, of Kuhn, Loeb & Co., and
Cornelius Vanderbilt from the director
ate, and in seemingly irreconcilable diff
ferences between the firm of Kuhn, Loeb
& Co. and the American and foreign
stockholds represented by it and the
Gould party and its adherents.
Votes against Mr.. Bush were cast by
ali the new members Of the board elected
at the last annual meeting, with whom
George Gould had arrangements for the
development or rehabilitation of the COM
pany.
These directors were Paul NJ. Warburg
c. Vanderbilt Edgar L. Marsten, Of Blair
&; Co.; E. D. Adams, representative of
the Deutscher Bank of Berlin, and Fred
I. Gates, representing John D. Rookie
Teller
Every member of the board was pres
ent, and votes were cast for Mr.. Bush by
the following: G. J. Gould, E. T. Jeffery,
Edwin Gould, Kingdom Gould. E. B.
Pryor, S. F. Pryor, c. S. Clarke, and
r. L. Williams. the Gould party out
voting the opposition eight to five.
Report Against Bush.
The election of Mr.. Bush was carried.
desoite the fact that the majority Of
the special committee appointed to Sc
lect president as successor to Mr..
Gould reported against Mr.. Bush. This
committee was appointed March 81. at the
first meeting of the directors. following
the annual meeting at which the new
directors were elected.
After the meeting to-day Kuhn. Loeb
& Co. charged that Mr.. Gould had
broken faith. and it was reported that
direct charges of breach of faith were
made at the board meeting. Mr.. Could
said he had disagreed with Kuhn, Loeb
Co. because of the interest Of that firm
in Union Pacific. a competitor of the
Gould western lines.
Kuhn. Loeb & Co. had this to say:
AT meeting of the board of directors
Of the Missouri Pacific Company, held
this afternoon. Mr.. B. F. Bush was elect
ed president OF Ihe company. A majority
of the special committee. consisting of
MeSsrs. Gates, Adams. and Gould. ap-
pointed by the board Immediately after
the annual election in February last to
consider and recommend i suitable presi-
dent. did not favor Mr.. Bush, who was
the candidate of the Gould interests. but
he was nevertheless, elected to-day,
through the predominancy in the boir1
o; the latter interests anil against the
votes o. MesSrs. Gates. Adams. Wander
bilt Warburg, and Marsten.
in consequence Mess-s. Warburg and
Vanderbilt. deeming it impractical - ac-
complish under prevailing conditions the
purposes which promoted them to enter
the board, and unwilling to share resGn-
siblity in the mana cement of the COM
pany under these circumstances, have re-
signed as directors
B. F. Bush. the new president, was
with the Northern Pacific many years
ago. but went over to the Goulds, be-
coming president of the Western Mining
and Coal Company. the corporation which
controls the Gould coal and ore proper
ties in the Western States.
In March, 1907. Mr.. Bush became presi-
dent of the Western Maryland. an East
ern Gould road.
In March. 1905, the company went into
the hands of a receiver because Of in
ability to refund maturing obligations
on advantageous terms. Mr.. Bush was
made receiver and quickly reorganized the
company, becoming its president when
it emerged from receivership in De-
Cember 1909