The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-06-02
SPEYER AND GOULDS
STEP INTO BREACH
Agree to Take Over Undeposited
Missouri Pacific
Notes.
RECEIvERSHIP AVOIDED
RECEIvERSHIP
Arrangement Takes Care of
Debt While Reorganization
Plan Is Considered.

Speyer q Co. and the Jay Gould Is.
tate agreed yesterday to buy I'D any OF
the Missouri Pacific notes that have not
been deposited for extension. They will,
deposit for extension the notes they pur-
chase The company's directors declared
the extension plan operative AZ n result
OF this action. The Missouri Pacific is
therefore out Of hot water for a year.
so far as the payment Of this troublesome
s2S.ooo.0o0 debt 10 concerned. In the
meantime II Is expected that a plan Of
reorganization OF the company's finance,
will be taken up In order to reduce Its
fixed charges and possibly to raise new
capital on an assessment.
The financial community was mot
greatly surprised that Speyer & Co. and the
Goulds came forward at the last momen,
with an offer to buy up undeposited
notes. In view OF the optimistic utter
ances OF directors at the end Of last
week that there would be no receivership
The offer. however. contrasted strongly In
the opinion OF Wall Street with state.
ments said to have been made on behalf
Of bankers high In the AFFAIRS Of the road
In the earlier part OF the week that un.
less all the notes were deposited the
road faced a receivership and that notes
undeposlted would not be paid. The un.
deposited 8 per cent notes advanced yes
terday from -. the quotation on Friday,
to s7h Qssh late yesterday afternoon.
The extended per cent. notes were
quoted at s3h 9se.
In announcing the success OF the ex-
tension plan through the agreement of
Speyer Co. and the Gould estate to
buy up undeposited notes James Speyer
expressed the qualification that was felt
by the directors that the company had
been saved from receivershlp. Mr.. Speyer
called attention TO a point In the agree
ment that was not contained In the writ
ten announcement given out by the man.
agement.
There is absolutely no commission TO
be paid the bankers and the Gould estate
for their services In buying up the unds-
posted notes and handing them over for
extension" said Mr. Speyer. IF we had
not stood In the breach we could not
have declared the extension plan definl-
tive. This IL perhaps the first time that
such thing has been done by bankers
without commission or compensation OF
any kind"
The fact that the Gould estate Is put.
ting more money into the road In taking
up the undeposited notes led the financial
district to believe that George j. Gould Is
not planning any immediate elimination
OF himself from Missouri Pacific affairs
1t Is an open question whether negotia-
lions will be resumed with Kuhn. Loeb
Il Co. for permanent financing.
The roads directors made the following
statement after their meeting:
THE Missouri Pacific Railway Com
pany has declared the extension agree
ment dehnitive. The time for further
deposits has been extended TO and In
June 6. 1914.
"Messrs Speyer & Co. and the Jay
Gould Estate have agreed to purchase
any notes not deposited under the ex-
tension agreement and thereupon to de-
post the same for extension. Note
/ olders not desiring to avail OF the bene-
ht OF the extension agreement and the
addit onal interest and security therein
provided should present their notes to
Messrs. Speyer d Co.. "a to 26 Pins
street
Holders OF receipts should present the
same to the depos.tary for payment OF
the instalment of Interest due this date
on taid notes. Each holder OF rec. ipt
should accompany the same by the GER
titcate OF ownership required by the in
ternal revenue department under the Fed
eral income tax law In connection with
such interest payment.
Coupon sheets are now In the course
of preparation. Holders OF receipts. upon
surrender thereof to the depositary, will
be entitled TO receive notes of the fac
amount mentioned In the rec ip's. extended
as In the ext nsion agreement provided.
with the add tional coupons for interest
annexed. Announcement will be made
when such extended notes and coupon
sheets are ready for delivery