The Birmingham age-herald., 1911-02-19
FORMAL SURRENDER ;. 0F GEORGE GOULD Marks Passing of a Great
 Railroad System FROM THE FAMILY Has Not Been Good Manager Either for his Own Interests or Those
 of His Associate
 Shareholders q"
FROM THE FAMILY
BY w. G. NICHOLAS


 by Kuhn. Loeb & Co.,, aided and abetted by Johu D. Rockefellow This event marks the passing of the Gould con- trol of the great railroad system which has been in the family for S2 years.
 It Is the last important property over which George Gould had physi- cal and financial direction, and he will now probably join the army of rich and semi-retired multi -millionaires, although he will retain official connec- tion With number of properties in which he has investments. Wall street was particularly interested in the last chapter In the Gould tragedy as much on sentimental account as because of the actual retirement of the present head of the Gould family from the practical manipulation and management of a rail- road system.
 George Gould has not ben a good manager of railroads and he is not good manager of Western Union-that Is, not good manager for his asso- ciate stockholders In these various enterprises. The family fortune may have increased during his years of trusteeshfp of the family dynasty. but he would have been worth dollars where he Is worth cents today If he had adopted progressive tactics in- stead of parsimonious and wholly selfish policy
 When Jay Gould obtained control of the Iron Mountain and Missouri Pacific systems from the Garrison and Allan families of St. Louis, the two lines were about the best in the west. They have never teen as good since as they were when he took hold of them. The elder Gould used the roads for the enrichment of himself and Russell Sage by building, buying and leasing other lines and extensions per-
 sonally and working them off on the Missouri Pacific under such terms and conditions that the parent com panies were drained for all they could stand. One instance will serve as an illustration.
 After he had got his hands on the Iron Mountain and Missouri Pacific he personally built about 1000 feet of track connecting the two terminals in St. Louis which he turned over to the
 Missouri Pacific under an agreement
 whereby the railroad company was to
 pay him $1 per car for all cars hauled
 over the, connecting 1000 feet link It lis estimated that between 5000 and
 400 cars per day had been hauled across
 this little bit of track for thirty years, netting the estate over $1OO, ,0OO,- 900 year on an original investment of ! about $100.0O0. Missouri Pacific and its controlled lines have been a phenomenally productive COW for the
 Gould family to milk, although the prop critics themselves have been starved 70 death.
 The management has been directly contrary to the modern ideas of rail- road management and everything that the Goulds sponsored or were responsi- ble for fell into disrepute in conse- quence. They have finally been forced into the back seat and nobody in Wall street or out of it is sorry.
 The senior Rockefellow was a firm friend and packer of George Gould for dozen or fifteen years The Standard oil multi millionaire stood for him as long as he could-until thor oughly convinced that he was a poor
  curity of his. investments. When the Kuhn Loeb announcement was made that they were working in concert with MT. Rockefeller, MT. Gould was at first loath to believe the report. In- quiry at headquarters confirmed the statement, however, and without a mo- ment's hesitation the naughty head of the Gould family surrendered. Nobody in the Wall street districts dares to openly antagonize MT. Rocke- fellow. The Street Is white with the skeletons Of those who have gone
 against him. MT. Gould had no desire to enrich the collection What will now become of the Missouri Pacific is
 matter of speculation. It may be assumed as certainty that Kuhn, Loeb did not take the property over to hold. It is for salc or disposal.
 Mr. Daniel G. Reid of Rock Island | Is out west and Wall street hears that he is making hurried inspection of Denver and Rio Grande and Western Pacific with a view of annexing them to this system and getting his long de- sired outlet to the Pacific. Gossip is divided as to whether the Southwestern lines will go to the New York General, Pennsylvania, Hawley Y Yoakum or liar riman interests.
 | The celerity and decisiveness with which the threatened contest over the Missouri Pacific was disposed of was | further confirmation of the purpose of | the big interests to prevent rows or trouble in Wall street. The great banking syndicates and their connec- tions have successfully l suppressed trouble in several quarters' during the | last three or four month and they are keeping up the work. Kuhn, Loeb | & Co., are dividing honors with J. P.
 Morgan & company in saving situa- tionsP
 First the Farquhar-Pearson sltua
 tion was saved away back there in July, but 1t was not for several weeks afterwards that the policy of the grand amalgamated order of situation savers
 took full charge and made the pro- gramme clear. In fact, 1t was not until | the Carnegie Trust company incident and other minor disturbances in the banking world were ironed out that | the general public got clear understand | ing.
 | The peaceful adjustment of the Gould matter Is along the same general lines. | The tape affords further convincing l evidence of the powers of the bank l ing world are not against the market They may not be anxious to see prices boom just now; in fact. they are not l bit desirous of dangerous expansion l in speculation but they are clearly de- sirous of preventing any important re- action in prices Just now.
 The one feature which may give