The silver state. [volume] (Winnemucca, Nev.) 1909-1925, 1914-05-12
ROCKEFELLER MAY
SECURE GOULD LINES

feller interests stand ready to take
over the Missouri Pacific, the Denver
& Rio Grande and the Western Pa
cifc from the Gould family and pre-
vent the promised receivership from
taking place. In addition, these two
financial powers are ready to put
1926, ,000,0 900 into the three properties
in the betterment of roadbed, new
equipment, reducing grades and
building feeders. A representative of
large bonding and brokerage con-
cern affiliated with Kuhn, Loeb & Co.
is at the Hotel Utah looking into the
situation with a view of reporting
conditions to the New York interests.
He arrived simultaneously with E.
L. Brown, vice-president in charge Of
operations of the Gould roads; G. M.
Levey, general manager of the West
ern Pacific; J. G. Gwynn, chief engi-
neer of the Denver & Rio Grande, and
J. Russell, assistant to the vice-presi-
dent. He did not take part in their
deliberations yesterday nor make him
self known to them. Owing to the
presence of these railroad officials in
Salt Lake he requested that his name
be not mentioned for the present.
Goulds Cannot Raise Funds.
The Missouri Pacific, the parent
Gould company, must meet on June
outstanding notes to the amount of
$25, 100000. These notes were given
in partial payment of interest on the
bonded Indebtedness. During the
past several months, the Goulds have
been trying to raise the money to
meet these notes. Speyer & Co.,
which has been doing the financing
for the Gould railroads, have not
raised the money in Europe, it is I'M
derstood, as this company was the
one which put through the st. Louis
& San Francisco Frisco system)
deals and the road is now in the
hands of receivers. In addition, it
is charged by the representatives of
the bonding house which is looking
over the properties that Speyer & Co.
charge 10 per cent commission, which
is said to be exceedingly high for
railroad inacing.
The Goulds had the money promis-
ed from Europe, but the deal fell
through, according to the representa-
tive of the bonding house. Then
Kuhn, Loeb & Co. and William Rookie
feller offered to take up the $25000,-
| I006 if the Goulds would turn over all
interest in the road in regard to oper-
ations and financing George ].
Gould was willing to do this, but Ed
win oGuld and Mrs. Shepherd, nee
Helen Could refused to do so. This
ended the negotiations. Then Kuhn,
Loeb & Co. and the Rockefellers
started on another tack. They permit
ted the Gould to go to every rail
road financing house in New York
and Philadelphia and there was none
which could or would help them out.
George J. Gould, it is said, is at this
time trying to persuade his sister to
change her mind in the matter of Civ
ing control of the properties to the
Rockefellers.
One of the arguments which Kuhn,
Loeb & Co. and associates are using
on Mrs. Shepherd is that as soon as
the people know that the Rockefellers
have control of the roads the stock
advances will be sharp and the Gould
holding of bonds will be worth almost
utuDIt Whdb thCy aiC dt thC ~ Cctht
time.
Bush Election Startede Fight.
The fight between the Goulds and
election of B. f. Bush as president of
the Missouri Pacific and its subsi-
diary lines. Mr.. Bush was the candi-
date of George ]. Gould, and the
Rockefellers, who have been interest
l.
date, WESTERN railroad man and
president of transcontinental line at
this time The Rockefellers have
been "after'' Gould ever since. One
oe the first things which will be done
in case Kuhn, Loeb & Co. and the
Rockefellers secure control, says the
representative who is in Salt Lake
will be the replacing of Mr.. Bush
with Rockefeller railroad man. This
probably would mean changes all
along the line in the operating de-
partment.
The officials of the Denver & Rio
Grande and Western Pacific who
were here yesterday admitted that
the conference had been called in re-
gard to retrenchment on the Rio
Grande and the Western Pacific. 1t
was stated by one of the officials that
way is being worked out to handle
the interchange of traffic between the
roads more economically. and also
that ways are being worked out
whereby the roads NAV be operated
more economically as a whole. The
cuts are to be made in the operating
department alone. The Rio Grande
and Western Pacific officials who were
here know nothing of the financial
condition of the road.-HeraldR Repub-
liean.