Albuquerque evening herald. [volume] (Albuquerque, New Mexico) 1911-1914, 1911-12-11
WABASH LINE WILL
REORGANIzE
Change in Control Causes De.
cision Which Surprises
Wall Street; Kuhn, Loeb g.
Co. the Fiscal Agents.

New YORK.. Dec. ii.---''t'inancial re-
adjustment and reorganization of tho
Wabash railroad was determined upon
IA meeting today. The announce
mcnt caused something of surprise.
II having been generally believed that
the rcorEanized plan Of the Wheeling
and Lake Erie Wabash Terminal
roads would be- accepted, thereby ma
tcriaiiy reducing Wabash's financial
burden.
Winslow s. Pivrcs. once "A prominent
figure In all Gould projects. returned
Co his early Affiliations as chairman OF
the Wabash board and rcorganlza-
ton committee. succeeding y. T. JEFF
frey. who continues as a director.
O,her new men in the board are Ed
win fiowiey. VINO comes IN not be-
cause OF any interest in waoanh. but
as practical railroad man, Robert
Goelot and Alvin w krcch. president
OF the Equitable Trust company. which
Is trustee Of the FIRST aud refunding
and extension mortgages ~ the Wa
bash road
ono 81 the unexpected incidents OF
the proposed roorgr nixniion is the
naming of Kuhn, Loeb A. company as
syndicate managers. That firm owns
the greater part. II not alt of the
ss.0oo,oo0 notes FOR which the wabash
- guarantor. but rs introduction IN
tp the reorganization company IN be-
ilcvcd In many Wall street quart ars
10 have some deeper signifcan'c. Re-
laiions between kunn, Loeb a COM
pany AMI the Goutds have not been
especially friendly since the uncx.
pectcd withdrawal of the BANKERS
from Missouri Pacific financing early
Ia thu year.
10 Examine Property.
Although one al the leading inter-
cstA Ia the Wabash reorganization IL
authority FOR the statement that the
read juslment will not involve receiver :
snip. that point ~ yet to b. settled.
u viii not be definitely decided until
those who are 10 assume control vt
thr property have made careful eN-
amiuaiion into is physical and imam
ciul condition.
Seml-unnuui interest on about sff.-
V0e.Oou OF 4 per cent refundlny nonfs
falls due January 1, 1919. itcprescn.
tailvcs Of the road say every provision
- meet this interest has been rade.
rrt the recent course Of the bot,dh 10
ihc stock market reflected shesa as-
sIrnnc ~. To-day, however. On the
nswH uf reorganization the bonds as
well az the common ana preferred
shares. broke sharply. with only asr-
tlal recovery. Dealings 10 the bonds
were unusually heavy, constituting the
feature of trading In that division OF
the market.
- ~
bash became rife aR soon AZ announce
ment of reorganization was published
n h generally believed la financial
circles that control of the properly
has been wrested from the Goulda.
and the fact that Chairman Pierce
occupies similar position with the
Western ARfsla once "A Gould line,
bat now sald % be controlled bay the
lgockefellers. gave rise 10 the thought
that u mlglt be- acquired by those
interests.
The waDash's close connection with
Delaware. i.ackawanna ana Western
al liuifaIo seems Ia make such a con-
neclion plausible. hut esilelalH OF tho
latter road deny amy knoNiedgc Of a
deal with Wabash.
The Cosu,lan,'e statement.
The following statement was given
out after the meeting os THE Wabash
directors;
al the request If The Equitable
Trust company Of New York trustees
Of the nssl ana refunding and extern
rlons m0riane ~ the Wabash Raii-
/ road company. the trust If which cm-
braces practically the entire issue az
Wabash dchcnlurc bonds. She follow.
ing gentlemen have been made mem-
hers 81 the board Of directors ~ the
rnliroad cgmpany iliing vacancies
made 10 enable this reconciliation Of
thr hazard Robert Go,lei Edwin IIaw-
let, Alvin W. KFech aud wlnsioW \.
Pierce.
The same persons, with General
iThomar y. Hubbard, also dcslrnated ~
the trust company, Win constitute tho