New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-07-17
GOULD ESTATE LET
mop" STOCK co
Chief Incentive Behind
Formation of ProteC-
tive Committees.

& Co. brought out the two issues OF
Missouri Pacific bonds for which two
protective committees were recently
formed, the banking firm being repre-
scented on one by Otto II Kahn and Ton
the other by jerome J. Hanauer. II was
learned yesterday that the chief in
centive behind the formation Of the
committees a this time was the definite
knowledge IN the possession Of the
bankers that George j. Gould and the
Gould estate had sold practically al
their Missouri Pacific stock.
With this fact established. interests
N close touch with the roads affairs
said that Kuhn, Loeb & Co. felt there
was no further obstacle 10 the forma-
ton OF readiustment OF Missouri
Paciic's financial structure which
would completely eliminate George j.
Gould from any voice IN the manage
ment OF the property.
The hostility which has existed be
tween George j. Gould and Kuhn. Loeb
Co. ever since 1911. when the latter's
plans for taking over control of the
Missouri Pacific were frustrated by Mr..
GOuld's eleventh-hour refusal 20 accede
to the banking firms proposals, has
never died out. With this episode in
mind. Kuhn, Loeb q Co. have persist
emily refused TO finance the company's
requirements unless MIR. Gould would
agree 10 abdlcate Vow that voting
control has passed from his hands. the
situation has changed and the bankers
are now said TO be willing 30 stand
sponsor for readIustment plan which
they hope will obvlate the necessity Of
a recelvership.
The holdings OF George J Gould and
the Gould estate In Missouri Pacific
were estimated at approximately s26.-
100000 before they were liquidated.
While some Of this amount is still held,
interests who have made u a point TO
know say that very little Of the stock
remains in the hands OF the Goulds eX-
Cept individual holdings of other mem
bers OF the Gould family.
Members of the bondhOlders' protec-
tive committees said yesterday that no
active steps had yet been taken toward
a Missouri Pacific reorganization, but
that conferences would be begun in the
near future with this in view. The hrst
thing the committees viii consider. II
was stated, vii, be TO ind out Just what
must be done 10 place the property IN
a position where It's earning power viii
bear & more equitable relationship 70
It's capitalization. -.
The road must have new money.
said a member Of one OF the commit
tees. but this should be supplied with
cut increasing the interest bearing cap
itahzation. Just how this Will be
brought about !, Is still too early 20
predict
As a result Of the formation Of the
two bondholders' committees and the
committee representing the stocKno!d-
,rs. there came yesterday the announce
rpent that committee IS beng organ
ICED to protect the S2o,OOO,Voo per
cent notes OF the Missouri Pacific,
which were extended from June I, 1914,
70 June ! 1918. This committee VIII
consist OF Edwin G.. Merrill. president
of the Union Trust Company. CHAIR
man: Stephen Baker. president Of the
Bank of the Manhattan Company.
Howard Bavne. vice-presidcnt Of the
Columb a-Knickerbocker Trust Com
ranv: Louis Y. Bright. president OF the
LAWYERS Title Insurance and Trust
COMPANY; A. Barton Hepburn, chair
man of the Chase National Bank, and
Henry Ruhlender. OF Speyer 4 co.
Spooner & Cotton have been engaged
A. counsel for the committee and Henry
NJ. Popham. Of the Union Trust Com
panv. will act as secretary. Il IS also
expected that repre- -entatlve holders OF
rotes in other cites will be asked 10
join the committee.
r. is also considered not improbable
that protective committees for the Den
YER & Rio Grande and the Western Pa
cifc securities viii be formed later.
The latter has important interest obi
cations maturing on September ! which
are guaranteed By the Denver RIO
Grande. which is controlled By the Ms
sour Pacific through stock ownership.