The San Francisco call., 1913-07-20
BIC BANKS BACK
WESTERN PACIFIC
Kuhn, Loeb & Co., Blair &
Co. and Speyer & Co. Are
Behind B. F. Bush
Management Of Two Roads
to Be Consolidated With
Local Road

From an absolutely authoritative
Source The Call is enabled TO announce
that benjamin Franklin Bush will have
the backing of three of the strongest
financial houses on this continent IN
the rehabilitation of the Western Pa
cifc railway and in the unifcation of
that road with the Missouri Pacific and
the Denver and Rio Grande
BY equally unimpeachable authority
The Call is informed that among the
Immediate changes in contemplation
will be the consolidation of the Denver
and Rio Grande and western racine
mana gements and the transfer OF the
principal headquarters of the former
from Denver to San Francisco RMS
of economy. but to facilitate the
greater development of the coast trade.
The banking houses that will supply
the money TO enable Mr.. Bush to con-
vert the Gould lines into stronger
contender against the Southern Pacthc
and Santa Fe systems for California
business are Kuhn, Loeb & Co.; Blair
& Co. and Speyer & Co, all of New
York 1t was these houses that put up
the money to enable Mr.. Bush to con-
vert the Missouri Pacific and the Dem
yer and Rio Grande from semibank-
rupt roads into Immensely profitable
propositions.
financed the last bond issue of $20,-
100000 of the Missouri Pacific: 1T was
Blair & Co. that financed the sl0.-
100000 income bonds of the Denver and
Rio Grande: it was Speyer & Co. who
financed the recent S25.000,0O0 note
issue of the Missouri Pacific. Combined
they form one of the most powerful
syndicat tes that ever backed any rail-
road enterprise.
Mr. Bush. when asked for confrma-
tion of this backing yesterday, did not
deny it. He intimated that great
changes were in contemplation for the
Western Pacific as unit of the. trans
continental system he is weaving to
gether, but repeated what he had al
ready told The Call that immediate
expenditures upon the line would be
determined by the condition OF the
You have a wonderful country out
here" he said, and its possibilities are
tremendous. We are going to get our
lines into shape to get our share OF the
business"
The question of feeders through the
coast country, he said. was one that
would be considered. He had no plans
70 announce in this respect, however.
What Mr.. Bush has done with the
Missouri Pacific may be taken cri-
terion of what he will do with the uni
fed system. inclusive Of the Western
Pacific. Within two years he turned
deficit of approximately 50 000 600 to
net income of more than S4000.000 for
the II months ended Nav 81. 1918. He
increased the gross earnings this year
by SS.000,000 over the year before and
by s12.000.00O over the highest point
before he took charge.
F. Z. Brown, vice president in charge
of operation. viii divide his time be
tween San Francisco and Denver. while
J. NJ. Johnson. vice president in charge
Of traffic, will divide time between San
Francisco and St Louis. But in direc-
tion cf the Western Pacific and Rio
Grand divisions the Denver office will
he secondary to the San Francisco
headquarters.
Since the announcement of change In
Western Pacific mana cement the secur-
tiles OF that company have speedily ad-
vanced upon the San Francisco Stock
and Bond exchange. The bonds. which
a week before sold al SIC, sold yester-
day at s7S.25: the stock, on which
only IS was bid on the preceding Sat
urdsy, went Yesterday ar sS
p. C. & e. NOTE ISSUE
The Pacific Gas and Electric COM
pany has applied to the railroad com
mission for "a aqthorty to % rsneW s1o oop
The Santa Maria Gas and Power
company has applied for authority TO
renew per cent note in the amount
AUsPICOUS TIME TO INVEST
In a circular letter issued yester-
day by Louis Sloss & Co. the follow
Ing advice is given concerning invest
ments:
Because of the worldwide and un-
precedented demand for money we are
terest rates. Long term bonds are
selling to WELD a high return. while
corporations are financing requirements
with short term notes at unusual rates,
IN the belief that money will be
cheaper in the near future This be-
lief Is widely held by both corpora
ton officials and by their banking ad-
visers.
so general has this opinion become
that careful investors who do not
speculate on just when this period of
high interest will terminate are max
tpg the most Of the present excep-
uonal opportunity for investment in
corporate securities. It is not con-
Eervative Investment wisdom to at
tempt to predict exactly the time when
the very best basis can be obtaineo
BY delaying action you are losing in
terest and are apt to walt too long
until you can not secure the certain ad-
vantage now offered.
THE safer procedure Is to recognize
the undeniable fact that now is an
auspicious time to invest. and then act
accordingly.
Having thus decided. you can either
select permanent investment in long
term bonds, assuring yourself a good
you require the return of your principal
at an early date YOU can invest In
short term notes which can be resoid
within a narrow price range"
UNION PACIFIC EARNINGS
Union Pacific earned about 14.5 per
cent. for its common stock in the year
ended June 20. This. compares with
June results estimated the company's
net earnings from oDeration for the
last y months will be about 3400.-
000 greater than for the fiscal year
1912. For II months the actual in
crease was s3132.2SS
Income from investments will prob
ably he between $500. 900 and 81 900 =
000 less thqn the previous year This
viii partially offset the ss. 400. 900 gain
IN operating income, giving a net in
crease IN the years total income of
about s1.500.0o0. Fixed charges viii
show little change so that this 81 500
900 represents the Indicated gain in
surplus for stock. This is equivalent
to about OF ner cent gain over 1912
on the s216.650. 900 Union Pacific COM
mon outstanding
PORTLAND, EUGENE AND EASTERN y
The Portland. Eugene and Eastern
railroad. the Southern Pacific suhsfd