New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-01-04
TO PROBE c., Il. AND D.
Minority Stockholders Enpect to I'm
earth Some Startling Facts.

Some startling reveal tons are likely to De
made soon in the much tangled affairs Of the
Cincinnati. Hamilton and Dayton sysen Ihe
minority stockholders of the Pere Marquette
who have formed a protective committee and
engaged eminent counsel. feel that they have
been the victims of mismanagement and will
make a fierce fight In the courts.
1t was learned yesterday that despite re-
ports to the contrary the interest due last
Tuesday on the $3,500,Oo0 Pere Marquette col
lateral bonds given in payment for the entire
capital stock $4,000 900, of the Chicago. Cincin-
natl and Louisville was paid in Boston and not
defaulted. The guaranteed dividends on Pere
Marquette common and preferred stocks were
not paid however, nor the interest due on
the Toledo Railway and Terminal AZ per cent
bonds. which are guaranteed by the Cincinnati
Hamilton and Dayton and the Pere Marquette
This issue amounts to Sc, 100000. There is Sl4,-
100000 Pere Marquette preferred stock, guaran-
teed at per cent, and So 100000 Pere Marquette
common stock, guaranteed at ) per cent.
The minority stockholders think that the
original syndicate which obtained control of
the Cincinnati, Hamilton and Dayton and the
Pere Marquette and merged the two roads into
the so-caed Great Eastern system acted
squarey and above board Soon after this
merger effected, however, several members
of the original syndicate withdrew, and it was
Of the deals which in prospect.
The control of the system soon after passed
into the hands of the Holns syndicate, and
the minority stockholders think that it was
while this syndicate supreme that reckless
and improvident financing INDUCED in
which eventually bankrupted the system. Con-
troll of the Chicago Cincinnati and Louisville
and of the Toledo Railway and Terminal COM
pantes was purchased, so the minority says, at
altogether high prices. with the result that
the system loaded down with obligations
which it unable to meet.
The profits made by the underwriters of these
deals were large, 1t is alleged. and 1t is the re-
turn of these underwriting profits which the
minority stockholders will seek through the
courts Just who got these profits is not plain,
but will come out in the court proceedings.
Then came the sale of the property TO the
firm of J. p. Morgan & Co, the transfer to the
Erie and the repuda ton Of the purchase by the
Erie with the result that J. 2. Morgan & Co
took the road back. The receivership followed.
and the last event in the SYSTEMS checkered
career the passing of the Pere Marquette
dividends and the interest on the underlying
bonds last Tuesday.
The stockholders of the Cincinnati. Hamilton
and Dayton will soon move. 1t is expected, to
annul the lease of the Pere Marquette and also
of the Chicago Cincinnati and Louisville and
the Toledo Railway and Terminal Company.
The latter company, in all probability, will be
taken over for Joint ownership by all the rail-
roads entering Toledo, including the Lake Shore
the Pennsylvania, the Wabash, the Cincinnati,
Hamilton and Dayton. the Pere Marquette and
a number of smaller roads.