The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-07-29
GOULDS TO GET OUT
OFF. LAC. N. ROAD
Option Agreement FOrcshadows
Possible Solution of Missouri
Pacific's Troubles.
STATEMENT BY SELTGMANS
Every Probability That New
Owners Will Take Charge
of Limo August 1.

Control by the Gould family of the
International and Great Northern Rail-
way with Its l,l06 miles of track will
be ended II an arrangement for an op-
ton on the stool, control, entered into
hore yesterday. lis completed.
Wan Street bankers who were In
formed Of tho agreement late in the day
presumed 70 zoo IN tho International ar
rangcment n possible solution of the
Missouri Paciflc's financial troubles and
step toward complete rcorran cations
Of all tho so-called Gould railroad prop
critics.
As told exclusively In THE SUN yes
terday morning, tho holders OF the sli,-
900, 900 International and Great Northern
three year per cent. gold notes, due
August l, have agreed to an extension
for two and n half years at an increased
rate of interest. Ths part Of tho agree
ment. as announced yesterday. which at
tractcd most attention was this state
ment;
IAN understanding has been arrived at
between the trustees OF the estate or
Jay Gould tho owners of n majority In
tere-t in tho stock of the International
and Great Northern Railway, whereby an
option has been given to n committee
consisting OF Alexander J. Hemphill,
president of tho Guaranty Trust Com
pany; Alvin w. Krech, president OF the
Strong. Jr., OF the Bankers Trust Conn
pany: s. II. Voorhees, OF the Royal Bank
Of Canada Franklin q, Brown OF Red
mond e. Company: X, Lancaster Will
Jams, OF Middendorf. Williams q Co,
and Frederick Strauss OF ]. & w. Sels-
man 4 Co. representing a majority OF
the noteholders, 10 purchas. 81 per cent.
OF tho preferred stock Of the Tnterna-
tronal and Great Northern Railway Com
pany and 81 per cent. OF tho stock OF the
international and Great Northern Corpora
ton (the virginia holding company which
owns the entire common stock of the rail-
road company, which option ~ exercised
will insure control to the purchasers"
The statement OF the bankers plans.
which was made public by Frederick
Strauss OF 7. & W. Seligfnan Co.
snys further that tho exercise OF the
optlon is conditioned upon tho extension
OF all of the notes for period or two
and a half years Mt 6 per cent, the
notes to be repaid at 1Ol AZ maturity
A part OF the arrangement Is a guar
antv OF interest equivalent 10 S56o,ooo
for the benefit of tho noteholders
ut Is thought that this guarantees will
NJ, he needed" the statement recitss.
',rit & has been created 70 guard against
any shortage In earniugs during me
period OF the extended notes. AS soon
az the necessary papers have been pre-
M red no'ehOlderS VIII De h'Nti u w
posit their notes under an extension
agreement with The Central Trust COM
pany, trustee OF the notes.
"Every noteholder viii be given the
opportunity 70 participate in the purchase
OF the stocies IN proportion TO his hold
lngs"
The statement closes with mis- warning
'Tt cannot he too clearly impressed
upon noteholders that no arrangements
have been made or are contemplated
whereby non-as9enting noteho'ders VIII
bc paid. The alternative Of failure TO
extend the notes is = recelvership, with
all the complications and Disadvantages
that this implies"
REPRESENTATIVE Of majority OF the
notes have approved the plan, II WIS an
nounceh last night. and there Is every
probability that the nov owners VIII take
charge OF tho road August ] or a. soon
thereafter as the necessary formahtes
can be ca rri"d out.
The International and Great Northern
lines are mainly in TeXat The net earn
lnCs for 1913 were reported as S2,133,oSo'
Tie total liabilities, lncluiing tho com
mon and preferred stock. according To
| the 1913 general balance sheet ara
| t49ST7.O15.