The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-07-17
GOULDS ALMOST OUT
OF MISSOURI PACIFIC
Wall street Learns They Have
Disposed of Nearly All
Holdings.
TO CEASE ALL CONTROL
Protective Committee Formed
to Guard Interests of
Note folders.

That George j. Gould and the Gould
estate have disposed Of practically all OF
.seir holdings in Missouri Pacific STOCK
v,s learned Yesterday from the best au-
,bori,v or the ESQ 900 shares of Missouri
Pacific stock. with a par value OF S2o'-
ooo 600. once held by the Goulds only
,ha, which Ia in the hands of Individual
r,erbers other than George J. Gould Is
no,y credited to the family which once
exercised such a dominating controi over
the system.
Rumors to this effect have been IN
circulation ever since last SPRING "ne"
N apneared that the road would be unable
TO get any one 30 finance the maturity
of its s25 900, 600 3 per cent. notes which
foil due on June |. the notes were
finally extended for one year TO pear
interest at i per cent. During tnat V,,,e'
howovcr. the turnover In Missouri Paclnc'
. not esp, cially active stock. was OF
record breaking volume. as many as 81
noO shares being sold in one day ms
however is the first time that connrfna-
ton of the report that the Gould es'ate
and George j Gould had substantially de-
creased their holdings has been obtained
,yhua ,ba protective committees for the
aoe sos 600 first and refundng mortgage
convertible per cent bonds, the s5''-
5000 forty year per cent. bonds OF
1905 and the stockholders have held their
organization meetings, no dennlte steps
have been taken to formulate plan Tor
a reorganization OF the Missouri Pacinc.
Members OF the committees SAID yester-
day that before any readjustnent plans
are formulated IL will be necessary 10
make "A thorough investigation OF the con-
dtion of the property, its earning powers
and financial status.
Whatever plan is devised II Is known
for n certainty that II Kuhn, Loeb Il Co.
are to have anything to do with the H.
nancing OF the property, and all indi-
cations point that way, they VIII hrst OF
all insist on the absolute cessation or
Gould control in the property. such was
their attitude when the directors or the
road approached them last spring to H.
nance the maturing s25. 900 900 notes, and
the ulttmatum they delivered at that
time Is unchanged Closely associated
with the two bondholders' protective COM
r1ittees. the bankers will be in an even
bette position 20 insist on the cessa-
ton of Gould control than they were last
spring.
A director Of the Missouri Pacific said
yesterday that he expects that whatev er
reorganization takes place will be along
the lines advocated by Kuhn Loeb Co.
to the directors on May IL. In this let
ter the bankers advised a scaling down OF
with the raising of 49,. 900. 900 for the
Immediate use Of the property within the
next few years. without increasing the
fixed charges. In addition Kuhn. Loeb
Co. placed the needs OF the company at
ss5, 1000. 900 within the next seven years.
With such funds supplied fixed charges
reduced and the physical property in good
condition the bankers said that they saw
no reason why the road should not at
tain assured prosperity
The two bondholders' committees and
the stockholders committee are working
In harmony TO obtain reimbursement OF
the property without recourse to the ex-
pensive and long drawn out medium OF
a receivership.
Another protective committee was
formed yesterday to look after the inter
ests of holders OF the notes which were
extended last spring. The committee Is
composed of Edwin q. Merrill, president
Of the Union Trust Company. chairman
Stephen Baker. president Of the Bank OF
Manhattan Company Howard Bayne
vice. president OF the. Columbia Knicker'
booker Trust Company Louis V. Bright
president OF the Lawyers Title Insurance
and Trust Company A. Barton Hepburn
chairman Of the board of directors of IN,
Chase National Bank. and Henry Rub
lender Of Speyer n co. Henry r. Pop
ham Of the Union Trust Company viii
act as secretary.
II Is understood that George j. Goult
and the Gould estate now hold hetweer
$4,000. 0o0 and $4,000. 900 OF these Mis-
sour Pacific 6 per cent. notes. which fal
duo on June I. 1915. Previous 10 the ex
tension of the notes the Goulds were be
iieved TO hold about 100000 of them
Holders Of between $4,000. 900 and 81. 900.
nm refused to agree 10 the extension
and Could bought up large amour
~ the notes OF the non-assentng holders
thus Increasing hi2 holdings In that Sc
curlty by several millions,