New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-08-21
EAR0UHAR GETS CASH HERE
N. Y. Bankers Share in Buying
Argentine Railways Stock.


South America 10 include countries other
than Brazil has been comparatively re-
cent. In pursuance Of its plan for such
extension Il incorporated last month
, the Argentine Railways Company, capltai
s4?bOO, 900; the Bolivian Central Railway
Company, capital s25,0Q0,00O, and the
Cruguayan Railway Company, with s2o'-
100000 capital stock Through these COM
psries, Il is said, the syndicate purposes
connecting the scattered railway systems
o, the several South American countries
Ind establishing through lines.
The financing just accomplished in the
interest Of the Argentine Railways Com
rHny, II is understood has no direct rela-
ton 60 the Brazilian railway enterprises
OF the Pearson Farquhar syndicate, but is
primarily with the object Of consolidating
the various railway projects in the Argen-
tire with which the syndicate Is connected
the design being to secure greater ct-
nclency Of operation and TO develop the
Resources Of the country.
The report from London that syndi-
cate Of American and European bankers
had purchased from Percivsl Farquhar
sl5oO0,C00 OF the per cent preference
stock Of the Argentine Railways Conn
pnny was confirmed here Yesterday
Among the members Of the syndicate arc
Kuhn. Loeb & Co.. Of New York; speyer
Brothers. Of London, and the Societt Cen
kralo and the Banque de Paris ct des Pays
13es. Of Paris.
Mr. Farouhar, who was once Tam
many Asseinblyman In this city; DR.. +. 5.
Pearson. his chief business associate. and
n number Of Canadian and European
Hnnnciers who have been closely identified
with them, including Sir William c. Van
horne and Messrs. Mackenzie and Mann,
Of the Canadian Northern Railway. have
for several years had extensive interests
81 South America and in Mexico. and two
years ago made an ambitious hut i'll fated
attempt 10 establish themselves as i'm
portent factors in the railway field OF the
United States.
Perhaps their largest Interests are IN
Brazil. where they control the Brazil Rail
way Company, Of which Mr.. Tarquhar Is
president, and through which they plan a
merger Of the principal railway systems
Of that country. most Of which now OK
tend inland from the coast. without con-
nection by north and south lines. The
Eo-called Pearson-Farquhar syndicate is
also heavily interested in traction, light
ard power properties I'm Rio DC Janeiro
and other places and a few weeks ago
organized the Brazilian Traction. Light
and Power Company. with s120 10
authorized capital stock, 10 take over tho
various companies controlled by them IN
Mexico the syndicate control, among
other properties, the Mexican Northwest
ern Railway Company, Of which Or Pear
son is president
TIE many millions heretofore raised by
the Pearson arquhar syndicate for their
South American and Mexican enterprises
have been obtained almost entirely in Eu-
rope, with perhaps A small part in Can
ada. Mr. Farquhsr. in an interview two
years ago, said that he always went TO
Europe for money, as it was useless to
seek funds here, and that the United
States would not be ready 10 invest money
Ia foreign enterprises until the construc-
ton and reconstruction of its Western
railways should have been completed. The
present Argentine railways transaction IS
said TO be the first of the Pearson-Far
Quhar syndicates financing operations in
which American bankers have partici-
peted. American capital, however, is
likely from now forward to seek increas-
ing investment in South America, another
indication being the activity in that field
Of the National City Company, which re-
Gently dispatched W. Morgan Shuster on
tour of observation through the south
ern continent, with the object of recon-
mending investments
The Empire Trust Company. OF this
city, which is the trustee of the mort
cages Of various Pearson Farquhar conf
panies, in announcing few weeks ago Il
proposed increase in its capital stock
from s, 10000 10 $4,000. asked it's share
holders to waive their right TO subscribe
for the new stock. which 1t was desired
10 allot to new interests In this country
and abroad. II is reported that these new
interests include representatives Of the
Pearson Farquhaf group. who are likely
10 enter the board next month, thus Civ
ing the syndicate for the first time direct
relations with a financial institution in
this country.
The only operation which the syndicate
have conducted in the United States was
that of two years ago, which IL still well
remembered in Wall Street. They con-
ceiyed the daring project OF establishing