New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-01-21
WILL END GOULD
CONTROL OF MOP
Long Expected Action Due
at Annual Meeting
on March 9.
ENOUGH PROXIES TO
VOTE FAMILY OUT
Kuhn. Loeb & Co. 70 Replace
Speyer & Co. as Bankers
Shares Rise.

Definite progress m the plans %
Wall Street banking interests 70 effect
n charge IN the Missouri Pacific board
OF directors A. the annual meeting on
March which presages the elmina.
ton Of the Could family from control
was indicated IN the announcement ~
sued from the Offices Of Kuhn, Loeb &
Co yesterday. that n proxy committee
has been formed 20 represent the
stockholders That the call for proxies
will not be opposed By the Missouri
Pacific management was the statement
Of member % the committee me
makeup Of the independent proxy com
mittee is NJ follows:
Alexander j. Hcmphill, chairman OF
the board Of Guaranty Trust Com
pany; Otto II. Kahn. OF Kuhn, Loeb q
Co.. Seward PrOsser. president % the
Bankers Trust Company; James y.
Wallace. president Of the Central Trust
Company, and Robert Winsor, Of Kid
der. Peabody & Co. Charles +. Sigler
IS secretary Of the committee.
The formation OF this committee was
the result OF conferences between the
committees representing the note
holders. the stockholders and the bond
holders Of the railroad. A. yester-
days meeting practically the full mem
berShip. consisting Of twenty-four
men. authorized the issuance Of the
call FOR proxies by the bankers men
toned. They were drawn from what
was known as the general conference
committee. which was formed last July
10 represent the other committees in
negotiations looking toward read
fftu 81 s.,T Co. Gna
In its letter 10 the company's stock
holders the proxy committee gave its
views upon certain fundamental ques-
tons Of policy" which it believed
should be followed in the hoped for
financial rehabilitation Of the Missouri
Pacific. The committee paid tribute
TO the management Of President b. +.
Bush and recommended that he be con-
tlnued in office.
"On the other hand" said the COM
miltre. without desiring TO express
or imply any criticism. we believe that
Il material change in the present COM
position Of the board Of directors would
be in accordance with the sentiments
Of the great body Of the company's Sc
ourity holders"
This vas the paragraph in the COM
mittee's statement which was consid-
cred in the financial district as sound
ing the death knell of the Gould domi-
nance in Missouri Pacific affairs, for
il has been repeatedly pointed out in
The Tribune that the firm Of Kuhn.
Loeb & Co. would not participate in
any reorganization plan which would
in any way mean p continuance of the
Gould influence.
In the opinion Of the proxy commit
tee three fundamental things appear
needful TO enable the Missouri Pacific
20 render adequate service:
'First-An increase in certain rates
and freedom from unduly burdersomc
govern mental requirements.
"Second-A material reduction in the
existing fixed charges, which while APP
parently within the limit OF the earn
irg capacity Of its properties. are so
close 20 the danger line as to deter
the public from investing in the com
pany's securities. thereby rendering II
difficult, IL not impossible. TO secure
FOR the company's securities that de-
gree OF public support which is abso-
lutely necessary for its credit and
financial standing.
Third An adequate provision 20
meet maturing obligations and provide
for the future capital requirements o.
the property
Among the specific measures the
committee recommends are the follow
ny:
1.-THE extension for at least one year
OF the S25000.000 Of s per cent notes
maturing June /, 1918. and Of any eX-
isting demand liabilities by the holders
thereof This is needed in order that.
before formulating a comprehensive
financial plan, the directors elected NJ
the next annual meeting may have an
opportunity thoroughly TO acousint
them selves with the company's cond.-
ton ana needs.
provision Of An adequate amount Of
capital by an issue Of securities in
volving no fixed interest charges.
Revision Of certain provisions IN
existing mortgages. so as 20 permit
among other things, the modification
of the present restrictions prohibiting
the extension OF underlying bonds of
which over s1s.000000 fall due within
about four years and over S26.000,00
more within about four months there
after. excluding over $4,000 OF
equipment obligations maturing during
said periods, such notifications hay-
ing become necessary in consequence
Of the decline in the pany's credit
and the shrinkage in the margin of
earnings over fixed charges which have
taken place since the creation OF the
mortgages containing the provisions in
question.
"Tt ia the judgment Of the experts
who have been consulted that. with its
inherently strong position in a terri
tory offering vast possibilities of