Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1914-05-09
M. P.LOAN IS
. TURNED DOWN
Kuhn, Loeb & Co. Refuse an
Extension on $25, 100000
Notes.
GOULD MAY BE OBSTACLE
Recent Heavy Sales of Stock
May Have Influenced Wall
Street Investors.

NEW YORK, May S--Kuhn, Loeb
& Co., Wall Street bankers, announced
late this afternoon that they would
not finance the s25,000,OoO in notes of
the Missouri Pacific Railway Com
pany maturing June 1 next.
Otto H. Kahn, member of the
firm of Kuhn, Loeb & Co, said:
After having made q careful ex-
animation of the Missouri Pacifc's
financial and physical condition, we
have come to the conclusion that we
cannot undertake the extension of
the s25,00O,0 200 of notes which mature
on June 1. We do not feel that con-
ditions governing affairs of the
property warrant the undertaking by
Kuhn, Loeb G. Co. at this time.
Our reasons for refusing to
finance the Missouri Pacif1c's needs
at this time are stated in detail in
q letter which we have prepared and
have sent to the Missouri Pacific
Railway Company and which will be
made public on Monday. I do not
care to state what the contents of
this communication are at present"
In answer to question whether
this action might be accepted as
meaning that the firm would not at
some future time enter into negotia-
lions with the Missouri Pacific man
agement for financing the company,
Mr.. Kahn said he did not care to
discuss the matter further.
1t was reported after the conference
of the bankers that one of the things
which stood in the way of a success
full agreement was the matter of
stock control of the company. The
majority of stock of the Missouri Pa
cific is in the hands of the Gould fam
lily, and on one other occasion this
prevented Kuhn, Loeb & Co. from
taking over the roads finances.
Roads Accounts Investigated.
Negotiations between the Missouri
Pacific directors and the bankers have
been pending for a week. Some time
ago Kuhn, Loeb & Co. sent John #.
Stevens, an expert engineer, out to
make a physical examination of the
property. The accounts of the Mis-
souri, Pacific Company were also in
vestigated.
Kuhn, Loeb & Co.'S entrance into
the affairs of the Missouri Pacific was
made at the request of the railroad
directors, who felt that the financial
position of the company was critical
in view of the fact that no method
had been found for meeting the big
issue of maturing notes. a default on
the notes would probably mean re-
Ownership, although it is said that an
extension of the S25,000,00O may be
obtained.
It was stated today In reliable quar-
tiers that the final outcome of the ex-
listing troublesome financial situation
in Missouri Pacific would likely be
an offer to exchange new notes for
the $25,000,000 notes maturing on
June /.
No one could be found in the
financial district today who knew
where George J. Gould stands in Mis-
souri, Pacific. The consensus OF opin-
| ion, however, seemed to be that the
recent heavy selling of Missouri Pa
ciffc shares was for the Gould estate.
1t was learned further that little
ground existed for the rumors widely
circulated recently that John d.
Rockefeller was negotiating for the
purchase of the Gould holdings of
Missouri Pacific According to trust
worthy sources of information, a
banker. who is interested indirectly
in Missouri Pacific, did go to John
D. Rockefeller, jr., with a PROPOSE
ton that the Rockefellers buy out
the Goulds. George j. Gould ex-
pressed his willingness to sell, it was
declared, but the Rockefellers fatty
declined to have anything to do with
the proposed transaction. There the
matter dropped.