The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1911-04-25
GOULD PROVED He
COULD CONE BACK
MISSOURI PACIFIC MAcNATE
GAVE kuHN-LoEB INTER
EsTs a SEVERE JOLT.

1
MY personal relations with the sew
eral members of the firm of Kuhn
Loeb a. Co. have been so pleasant that
was reluctant to conclude that the
continuance Of that firm as bankers
Tor the property was not to the corpo-
ration's best interests / part with
them with personal regret, but their
interests i'm the Union and Southern
Pacific, both essentially competitive
lines to the Missouri Pacific. made
continuance of their relationship ais
bankers, in my Judgment, inadvisa-
Bile for the stockholders Of the Mis-
souri, Pacific as well as for the pub
! lie.
Once Interested in Union Pacific.
Gould was an important factor in
the Union Pacific long before the
Kuhn Loeb people became interested
in that property. He inherited his
interest in Union Pacific from his
father, who, at one time, absolutely
controlled that road. Gould Joined
the Kuhn-Loe Hartman party In the
reorganization Of the Union Pacific,
and afterwards became a member OF
the close syndicate which acquired
control of the Alton.
The famous Alton syndicate was
made up Of Gould. Hartman, Jacob I'll.
Schiff, senior partner of Kuhn Loeb
& Co., and James Stillman. In brief.
for years, Gould was one Of the in
siders in the Kuhn, Loeb Hartmann
Stillman property.
Gould Becomes Ambitious.
But one day without consulting his
associates In Union Pacific, the presi-
dent OF the Missouri Pacific took 1t in
to his head to link up an ocean to-
ocean line. Contracts for the con-
struction of the Western Pacific, the
line from Salt Lake TO the Pacific
coast, through the heart Of the South
ern Pacif1c's territory. were let before
the Kuhn, Loeb Hartman people
knew anything about Gould's ambi-
tious plans.
Hartman was furious, and tried to
buy Gould off. But Gould, with bull
dog tenacity, kept right on, and the
Southern Pacific had to haul the
rails and ties for the construction Of
it's competitive line
Then Came Resignation.
One day Wall street was informed
without any explanation, that George
]. Gould had ended his career as a d.
rector of the Union Pacific. Hartman
was asked on the witness stand why
his old Union Pacific associate had re-
signed.
Resigned" Hartman replied with
his characteristic terseness, "he didn't
resign; he was thrown out"
That was the real declaration of
war between the Kuhn, Loeb Harri-
man party and Gould. Gould kept on
with his transcontinental road; but
after the panic of 1907 he went to Har-
riman, hat in hand. and asked for help.
The net result was that he kept his
Western Pacific, but he lost control
of the Western Maryland, the Wa
bash Pittsburgh Terminal and the
Wheeling & Lake Erie, three of the
eastern connecting links in his trans
continental system.
Not pisheartened by Loss.
Evidently, however, Gould was not
disheartened by that loss, for the next
step was the one taken by all Wall
street veterans in preparing for war
he sold his Western Union Telegraph
stock, and by cleaning up all loose
ends, raised $40, 100000 In hard cash.
That money, which has been to his
credit in New York banks for months
past, doubtless gave him the courage
to Dust the Kuhn. Loeb people from
the Missouri Pacific management and
issue the foregoing statement
When 1t Is realized that next to J.
p. Morgan & Co, Kuhn, Loeb e. Co.
are the most powerful bankers in wall
street, 1T must be admitted that In is
suing that statement, Gould has taken
the bit In his teeth.
Stock Values Affected.
Stock market values were unfavor-
ably affected by the Missouri Pacific
episode, because when the captains
or industry" fall out among themselves
even the hardened professional specu-
lators become frightened.
The real reason for the sudden de-
cline which occurred during the past
week in the stock market, however.
was the news dealing with the steel
trade. In the first place, ait the an
nual meeting Of the United States
Steel corporation, Chairman Gary
made some remarks which Wall street
construed as decidedly bearish on the
trade outlook.
From long experience Wall street
has learned that Gary, by nature, is
an optimist. and that whenever 1t is
possible he takes a bright view OF the
future. That Is why the financial dis
trict sat up and took notice when ii
heard that the chairman OF the steel
corporation had admitted to the stock |
holders Of his company that the OUT
look was not altogether hopeful Part
Of what Gary said Is given below:
Statement Il Optimistic.
Since the extra session OF congress
was called there has been some relaxa- |
ton In placing or new business. AS
usual, the introduction OF bills I'm con-
gress, particularly a bill relating to |
the tariff. has an effect upon the pur-
chasing public which causes some
doubt and distrust and timidity, and /
that il true Of the present extra ses-
sion OF congress. However, / think /
during the month Of April our entire
bookings will show that we are dom. |
very fair business although the |
bookings will be somewhat less than
they were during the month OF March. |
(March showed an increase OF only /
1900 tons In untitled orders. CONF
pared with February On the Whole
am very hopeful or the future, al
though know politics to be d dis
turbing factor. 1T Ii pity that 1t /
should be So but nevertheless IL ia i |
fan4