The sun. [volume] (New York [N.Y.]) 1833-1916, 1911-04-19
Kuhn-l loeb interests Get Out
When Bush Is Chosen
President.
APPREHENSION OF STRIFE
Breach Of Faith. Says Bankers Side
100 Much Union Pacific,
Gould RetoFss.

long and bitter controversy over
the selection Of a now president At meet
ing Of the board OF directors Of the Mis-
souri, Pacific yesterday ended in the
election Of B. F. Bush. president Of the
Western Maryland and q Gould man
in the designations Of Paul M. warburg
Of Kuhn. Loeb 4 Co. and Cornelius Van
derbilt from the directorate. with seem
ingly irreconcilable differences bstwsen
the firm Of Kuhn, Loeb q Co. and the
American and foreign stockholders repre-
sented by it and the Gould party and its
adherents.
Votes against Mr. Bush we're cast by
all Of the now members OF the board
elected at the last annual meeting. With
whom George J. Gould had made sr-
rsngements for tho Development or re-
Of the company. These di-
rectors were Paul NJ. warburg Of Kuhn.
Loeb d Co.. Cornelius Vanderbilt. Edgar
AZ Va oioh IL SOs e H. hu1fuS,
representative Of the Deutsche Bank Of
Berlin. and Fred T. Gates. representing
John D. Rockefeller Every member
Of tho board was present and votes were
cast for Mr.. Bush by George J. Gould.
E. T. Je6ery. Edwin Gould. Kingdom
Gould. E. B. Pryor. 8. F. Pryor. c. s
Clarke and R. Lancaster Williams. tbs
Gould party outvoting the opposition
8 to
The election Of Mr.. Bush was carriei
despite the fact that the majority Of the
special committee appointed 10 select
president as successor to Mr. Gould
reported against Mr.. Bush. This COM
mittee was appointed on March 81 at the
FIRST meeting Of the directors following
the annual meeting at which the new
directors we're elected Mr.. Gould in a
formal statement then expressed the
power Of the committee and the relations
between the various interests as follows
The board appointed special committee,
consisting Of Messrs. George J. Gould.
Fred T. Gates and z. d. Adams. to select
in their discretion president for the prop
critics. subject OF course TO the approval
Of the board lts hoped by all the Interests
that the stories and reports Of discord be-
tween Mr.. Gould and those he has invited
into the properties will now cease Tney
are without foundation in fact aud can only
serve to injure the credit OF the properties
which it is the united intention OF ali in
terested TO upbuid.
After the meeti ng yesterday the state
ments were OF different tenor. That from
Kuhn, Loeb h Co. implied that Mr. Gould
had broken faith. and 1t was reported thaG
very direct charges of breach of faiya
were made at the board meeting Nj
Gould said he had disagreed with Kuhn,
Loeb Il Co, because OF the interest OF thas
firm in Union Pacific. a competitor of III,
Gould Western lines Kuhn. Loeb 4 Co
had this to ga:
At meeting Of the board ~ director,
OF the Missouri Pacific Railwa" Comp,n
held this afternoon u. Y Bush wAs eirct.
president OF the company \ maioft
of the special committee, consisting OF
Messrs. Gates. Adams and Gould appoMtni
by the board immediately after the annual
election in February last 70 consider .ni
recommend a suitable pres,dsnt did no.
favor MIR. Bush. who was the and da,l o.
less elected to-day through the predYm.
nancy IN the board OF the latter interests
and against the votes OF Melsrs. Iatns
Adams, Vanderbilt, Warburg and Marstop
In consequence Messrs. Paul NJ War
burg and Cornelius Vanderbilt deeming IL
impracticable to accomplish under pre-
vailing conditions the purposes whicl
prompted them TO enter the board and un-
willing to share responsibility in the man
NJ of the nndar thasa
cumstances, have resigned IA directors.
This is Mr.. Goulds statement:
The board has, | think. made a Wise
choice in slectng 3. T, Bush as president.
He is familiar with conditions ON the line
and with the affairs OF the company. gained
while in its employ some years ago. ! was
much Influenced in nv advocacy Of his
election by the results he has attained in
the admins ration OF the Western Mary
land property and by the esteem in which
knew he was held by Mr.. Rock efeller, who
is so largely interested in the Western
Maryland and who next to our family ls
the largest stockholder in Missouri Pacific.
Kuhn. Loeb 4 Co. have stated that In case
Of Mr.. Bush's election TO the presidency they
would abandon their relations to the Mis-
sour Pacific as bankers.
My personal relations with the several
members OF Kuhn. Loeb h Co. have been so
pleasant that ] was reluctant to conclude
that the continuance OF that Arm az bankers
for the property was not to the CORPORA
tion's best interests. ! part with them
with personal regret. hut their interests In
the Union and southern Pacific. both es.
sentially competitive lines to the Missouri
Pacific, made a continuance OF their rela-
tionship as bankers In my judgment mad
visable for the stockholders Of the Missouri
Pacific as well as for the public. Latterh
when they advocated the election OF ex-
Gov. David Francis 20 the presidency OF
the property ! could not but feel that their
influence was not a helpful ons for The
property. for though Gov Francis has my
respect as q public man his efficiency as
n railroad operator WAS net quite as ap.
parent to me.
MIR. Gould would add nothing to his
formal statement but Wall Street man
who sometimes acts a. MI Gould's re..-
resentative replied to the question why
MIR Gould, long knowing Kuhn. Loeb Il
4. L.> kaa int - lv~ Nk~ y,,,