Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1913-06-05
SPEYERDECLARES
WAR ON FRISCO
FRISCO RECEINERSHIp PROM.
ISES TO RESULT ~ A BIG
FINANCIAL FIGHT.
WALL Street Interested
Bankers Claim Noakum Deceived
Them, While Yoakum Emphat-
ically Denies This.

NEW YORK, June a. (SpeclaD-
Speycr & Co. have declared war on
Benjamin +. Yoakum and his asso-
ciates in the Frisco. The fight is the
first that has ruffled finance since
the Hartman struggles and the Mis-
souri, Pacific discord, 1t promises to
be sharp.
Involved between the parties is an
Issue Of straight dealing and open
business relations. Responsibility for
disposing Of millions of dollars Of Sc
curittes in road heavily restricted
credit Is also a fundamental Issue.
The charge that the receivership was
the work of the Yoakum party in its
own interest without regard to the
great 100000, 900 interest of the
bondholders also plays an important
part
Speyer & Co. have staked the repu-
tatlon of their house on its ability
to protect successfully the interest Of
the holders of the $65,524, 900 of 3
per cent bonds which they financed.
James Speyer, the head Of the firm,
has cancelled plans for trip to
Europe and will stay in New York
through the summer, for the Frisco
receivership is regarded as a crisis
in the affairs OF the firm. The Yoa-
kun stock controlling syndicate is
the centre of attack.
The fight Is broader than strug-
gle to control the receivers for the
road. 1t is for control OF the road
itself or Its parts as It emerges from
a receivership. The question now up
permost in the financial community
is whether Benjamin +. Yoakum and
his friends have money and backing
to finance the reorganization and
keep the advantage which they
seized IT, the sudden move that gave
them control OF the two receivers.
The first step by the Speyers will
be conference between the mem
bers of the firm and Frederick w.
Lehman, formerly solicitor general
Of the United States, who represent
ed them at the receivership proceed |
ngs in st. Louis This may be held .
today They will discuss steps to Sc
and the appointment of
man in the interest Of the bankers. /
The Point at Issue.
The Speyers say that Yoakum ask
"a the firm TO finance the maturing
;2,25O,00O notes and that they not
70 or har Ia 70 he
'oad, Lut solely for the per cent
londs representing only one-fifth OF
he total bonded Indebtedness said
hey were not willing to help. They
elt that the other interests in the
Dad had even greater obligations
han they to protect this maturity.
The Yoakum men. they say, were
n the advantageous position OF con
rolling the road through ownership
Il part OF the s50.0O0.00O stock,
small proportion Of stock
capitalization in proportion to the
,onds, which are six times as much, I
The earnings Of the road az sub
nltted in the confidential monthly
the bankers hold, showed
hat 1t was not near recelvership. 1
t the time the $4,000. 900 bonds sold |
y the bankers in Paris in April were {
ontracted for. runs the Speyer view, /
he accounts showed that the road
ad a surplus Of sl.50O.OOO. Just be- {
re Mr.. Yoakum left, before the re- Z
the accounts showed that /
ne road had 100000 In cash. I
The bankers attitude Is that the ,
jad could not have lost so much in 4
irnings from the time when its con- I
ltion was reported to them in April {
5 favorable that recelvership In +
lay would be Justified. why re- (
,ivership was forced is the question C
peyer 4 co. will ask and develop in
lie proceedings to come. II
Spcyers Lett In Ignorance. S
No word Of decision for re- r
.ivership was received by Speyer & I