The Washington herald., 1915-01-21
BANKERS SEEK
ROADS CONTROL
Kuhn, Loeb & Co. Takes
First Steps to Secure
M. P. Directorate.
PROXIES ARE SOLICITED
Circular Signed by New Committee
Gives Reasons for Reorganization.
Would Extend Notes.

New York, Jan. 9O.-The first formal
step taken by Kuhn, Loeb & Co. to get
control of the Missouri Pacific Railway
Company directorate was taken today,
when, following a conference at the
bankers offices. the personnel of a COM
mittee to solicit proxies for the annual
meeting on March was announced.
The committee. which is composed of
representatives of all classes Of the Mis-
souri-Pacific's security holders, is as fol-
lows:
Alexander J. Hemphill. chairman of the
Guaranty Trust Company; Otto H. Kahn.
of Kuhn, Loeb & Co; Seward Prosser,
president of the Bankers Trust Com
pany: James N Wallace, president of
the Central Trust Company, and Robert
Winsor. OF Kidder, Peabody Co.
This committee was chosen at a joint
meeting of the bondholders' committee
noteholders' committee, and stockholders
committee, all the twenty-four members
OF the various committees being present.
circular signed by the proxy commit
tee and sent to stockholders tonight, ask
| ing for their proxies, says:
I'm order to enable the system to render
adequate service and thereby gain that
degree of confidence, good will. and sup
port on the part of the public in its ter
rltory. which is essential. three funda-
mental things appear needful:
Would Extend Notes.
First. An increase in certain rates and
freedom from unduly burdensome govern
mental requirements.
Second. A material reduction in the
existing fixed charges, which while ap-
parently still within the limit of the
earning capacity of the properties. are
so close to the danger line as TO deter
the public from investing in the COM
pany's securities. thereby rendering it
difficult. if not impossible, to secure for
the company's securities that degree OF
public support which is absolutely n"CeS-
sary for its credit and financial stand
ing.
Third. Adequate provision to meet ma
turing obligations and provide the future
capital requirements of the property"
The committee SAYS that among the
measures necessary is the extension for
at least one year of the 900 of per
cent notes maturing June l. 1915. This.
the committee says, is needed before
formulating a comprehensive financial
plan, so that the directors elected at the
next annual meeting may have an OppOr-
tunity thoroughly to aCquaint themselves
with the company's condition and needs.
Would Issue Securities.
Another measure necessary. according
to the committee. is provision Of an ad
equate amount of capital by an issue of
securities involving no fixed interest
charge"
Another necessary measure. according
to the committee. is revision of certain
provisions in existing MORTGAGES so as to
permit, among other things. the mOdifi-
cation of the present restrictions prohib-
iting the extension of underlying bonds
(of which more than .O0O fall due
within about four years, and more than
S26, 900 more within about four years
thereafter, excluding more than $500 OO0
of equipment obligations maturing during
said period, such notifications having
become necessary in consequence of the:
decline in the Company's credit and the
shrinkage in the margin of earnings over
fixed charges which have taken place
since the creation OF the mortgages con-
tanning the provisions in question:
II was learned today that one of these
provisions is in the indenture back of the
convertible per cent bonds, which pro-
vides that these bonds can only be is
sued to take up maturing underlying Sc
Curities.