Daily Kennebec journal., 1911-04-19
Kuhn-L0eb & Co. WithdraWS
as the Railroads Bankers
And Cornelius VanderbiIfs Re-
preSentatives Also Leaves.
J. D. Rockefeller Supposed to Have
the Balance Of Power.

New York, April 1S.-Although re-
Gently forced out of the position him.
self, George j. Gould opposing the
| Rockefeller. Kuhn Loeb interests,
brought about the election today of
| B. F. Bush as his successor as presi-
dent of the Missouri Railway defeat
ing the opposition candidate. David r.
Francis, former governor of Missouri.
Mr.. Bush is president OF the Western
Maryland Railroad.
The victory of the Gould faction
was followed Immediately by the an
| nouncement of Kuhn-Loeb d Cos.
withdrawal as bankers for the system
and by the resignation of Paul NJ.
| Warburg the company's representa-
| tive on the board of directors and of
Cornelius Vanderbilt, an ally. Edward
| l.. Marston, representing Blair & Co,
Fred T. Gates, representing John D.
Rockefeller, and +. u. Adams, Ameri-
can representative Of the Deutsche-
| bank, voted against Mr.. Bush, but did
| not sever their connection with the
| board. 1t is rumored, however. that
| Messrs. Adams and Marston will re
sign also, although this cannot be con-
| firmed.
After the meeting both George Could
and Kuhn, Loeb & CO.. issued state
ments explaining their side of the case,
Mr.. Gould regretting personally the
Withdrawal of Kuhn. Loeb * Co., but
congratulating the road on the selec-
ton of Mr. Bush.
Kuhn. Loeb & Co. on the other
| hand, explained they did not favor Mr.
Bush and because OF his election.
MeSsrs. Warburg and Vanderbilt felt
unwilling To share responsibility in the
management OF the company under
these circumstances" Mr.. Gould in
his statement says:
The board has, | think made a wise
choice in selecting Il. r. Bush as
president. He is familiar with the
conditions ON the line and with the
affairs of the company. gained while
i'm its employ some years ago. 1t was
much influenced in my advocacy of his
election by the results he has attained
in which I knew he was held by Mr.
Rockefeller. who is SO largely interest
| ed in the Western Maryland. and who
| next to our family is the largest stock
holder in Missouri Pacific.
My personal relations with the SeV-
eral members of the firm of Kuhn,
Loeb & Co, have been so pleasant
that | was reluctant to conclude that
the continuance of that firm as bank
| ers for the property Was not To the
corporations best interests. / part
with them with personal regret, but
| their interests in the Union and South
ern Pacific, both essentially eompeti-
tive lines 10 the Missouri Pacific made
a continuance of their relationship as
bankers in my judgment inadvisable
for the stockholders of the Missouri
Pacific as we'll as for the public Lat
terly when they advocated the election
of EX-Gov. David Francis To the presi-
| dent of the property | cannot but feel
Tor the property. for thous Gov. Fran
els has my respect as public man
his efficiency as railroad operator
was not quite so apparent to me-"
Missouri Pacific was the pivot of an
| excited and demoralized market all
day long. Wall Street had intima-
tions that the board meeting would
| not be harmonious and the whole mar
ket declined violently as n consequen-
ce. AS the tone of the statement is
sued by Mr.. Gould was cordial in its
reference to Mr.. Rockefeller. the in
ference drawn by Wall street was that
| Mr.. Rockefeller now holds the balance
of power in the board