Salt Lake Tribune | 1917-02-22 | Page 1 | Goulds out Fo the Missouri Pacific

GOULDS OUT OF THE MISSOORI PACIFIC Iron Mountain Also Sold Under the Hammer; System Sys-tem to Be Reorganized. PT. IXDUIS, Feb. 21. The Missouri Pacific Pa-cific railroad and the St. Louts, Iron Mountain & Southern railroad were sold under foreclosure here todav to R. H. Neilson and Duncan A. Holmes, both of New York. Mr. Neilson represented the reorganization committee and Mr. Holmes represented Kuhn, Loeb & Co., reorganization reorgani-zation managers. The sale to the Kuhn-Ioeb representatives, representa-tives, it was stated in railroad circles, marked the passage of the Gould interests inter-ests from control of the Missouri Pacific system. The Kansas & Colorado Pacific will be sold at foreclosure at Topeka, Kan., next Friday, presumably to representatives of the same bank inn: firm. The three roads then will be formed into a single corporation, cor-poration, which will operate all the Missouri Mis-souri Pacific lines. While the lines have been operated as one system for several years, the Missouri Mis-souri Pacific and the Iron Mountain had separate directors and kept separate accounts. ac-counts. Through its ownership of a large block of Iron Mountain stock, however, how-ever, the, Missouri Pacific controlled that road. The Missouri Pacific was sold today for $16,150,000. The Iron Mountain brought ?23,,00,000. Only Mr. Neilson and Mr. Holmes qualified qual-ified to bid for the roads by putting up the necessary bond. Reorganization p'ans already have been approved by the Missouri public service commission. United States Circuit Judge Hook of Leavenworth. Kan., ia expected in St-Iouis St-Iouis early in March to pass on the sale, which It Is expected he will confirm. The work of winding up the receiverships receiver-ships then will be pushed, and it Is pre- (Contlnued on Page Two.) GOULDS OUT OF THE MISSOl PACIFIC (Ccntlnned from Page One.) dieted that by early summer the Missouri Mis-souri Pacific nlll be In the hands of the new companv. Tile reading of the descriptions of the sale took several hours. The bid of Messrs. Neilson and Holmes was handed in by Mr. Xeilson at the Missouri Pacific Pa-cific sale and by Mr. Holmes at the Iron Mountain sale. The prices bid today were the minimum amounts acceplahle to the federal court. The minimum price fixed by the court for the Kansas & Colorado Pacific is SJO.SOO.OOO. : Under the reorganization plan the Missouri Mis-souri Pacific is to have a total capitalization capital-ization of $383,642,01)0 and the stock of the, Missouri Pacific and of the Iron Mountain is to be assessed $50 a share. The Missouri Pacific-Iron Mountain system went Into receivership in August, 1915. It is the third road to be sold at foreclosure , in St. I.ouls In the last two years. The Wabash was sold in 1915 and the St. Louis & San Francisco In 1916. Both roads are now out of receiverships.