The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-07-24
BANKING SYNDICATE
AFTER PACIFIC MAIL
Reported TO Be Negotiating
With Railroad for Stock
Control option.
CHINESE AGENT Is HERE

Is HFhE
Much interest was aroused ia Wall
Street yesterday in the belief that an
important banking syndicate had been
'ormed. watch is negotiating for an
'pt!on on the stock control of the Pa
iHfc Mail steamship Company now held
~ Southern Pacific. The syndicate. as
exported In the financial district on sub.
nantbal authority, is composed OF Hay
len. Stone & Co.; Ladcnburg. THAI
mann a Co, and Hallgarten & Co. The
'ption reported as being negotiated will
tive the bankers the right TO the stock
u 80. The stock closed yesterday at
Nk.
The report OF these large banking ne
rotations was viewed with extreme in
crest because OF the possibility carried In
hem OF resale OF the Pacific Mail
hips TO the Chinese. Feng Sui OF Can
.on, who has come to this country
representing the Chinese Government In
IN inquiry regarding the possibility of
acquiring the Pacific Mail ships for u
Chinese t~ranspacifc line. has arrived
IN New York from san francisco and
has been In conference with officers OF
he Pacific Mail company.
1t was understood yesterday that rep
-esentatives OF the three banking Arms
have held conferences In the last few
days and that these meetings are to
be continued on Monday. How far the
reported negotiations have progressed
could not be learned. Officers OF the
ia Nh 49, 80 - 49, --..
knowledge OF such an option on the
stock. but Wall Street believed that the
bankers were making arrangements
looking toward an offer along these lines.
Protection for Stockholders.
The Southern Pacific Company own
III. 0s0.000 OF the $780, 200. 900 stock Of
The Pacific Mail. II is believed that be
fore an option on this control could be
siven to a syndicate arrangements would
ave to be made whereby the minority
stockholders OF PaciHo Mail would rave
IN equal opportunity to obtain stock.
For this a meeting OF stockholders might
be necessary for action upon the option
proposition.
Wall street reasoned yesterday thai
Chinese control and operation Of thu
big Pacific steamship line under Aineri'
on financing. with the big measure o.
American influence his would give
would be a possible and a~dvantageous
solution of the problem whicA con.
fronts American trade on the Pacific IA
the result Of the La Toilette seamen''
act. Operation OF the steamship lin,
by Americans Is no longer possible
Operation ny an oriental nation Is pos
sible because of the cheap labor whici
Il can employ. II is reasoned that l
would he much more to the advantage
OF Americans to have the Chinese oper.
ate at least one big Pacific line thar
to have the japanese control them all
The Chinese attitude to American bust
ness is one of friendliness.
One OF the banking firms. Hayden
Stone & Co, reported as Interested II
the proposed syndicate. has been inter
ested and now is in several important
steamship lines. In addition mem
bers of the firm are interested II
one Of the largest or the Pacif
trading companies, Galen NJ. Stone,
member OF the firm. being a director o
the Pacific Commercial Company. ON
of tie leading officers OF the latter com
pany on his return a month ago TO tht
country from Manila deplored In tn
strongest terms the La Toilette act nj
driving from the Pacific the Pacific Mai
Company. to which he attributed mucl
OF the success that has been attained b!
American trade in the Orient. He salt
that control Of the Pacific by the Japa
reese would undoubtedly prove very in
furious to American trade with the Fa
East.
Chinese Ownership Desirable.
Based on these related interests me
in the financial district acquainted wit
the Far Eastern trade felt that a bank
ing arrangement by which the Chimes
might become the operating agency q
the big Pacific company under America
influence would he highly desirable fror
the American point of view.
II was stated at the Pacific Mail Con
pany's Office that Mr.. Feng Sui did NJ
come to this country empowered TO pu
through any definite proposal for tn
purchase of the Pacific Malls ships. |
was said that he had been sent by tn
Chinese Government largely on n mis-
zion of investigation. The Chinese GOV
INT is of the opinion that there
room for "A Chinese operated trans
pacific steamship line. No move by II
Government nor by private capitalist
however. it was stated, has been set o