The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1908-11-05
Reorganizers Of the c. & NJ. Road
Assert Findings of Account.
ants are Wrongly Used
COMPANY is ON FEET AGAIN
Attack on the Opening of Through Ser
vice to the Cream City is
Puzzle to the Promoters of
the Big Venture

financing Of the Chicago and Milwau-
kee Electric Railroad which were
spread broadcast Friday received
prompt denial from those having i'm
mediate charge Of the property, who
declared tnat the facts as brought out
in the statement Of Arthur Young &
Co., the accountants who examined the
books, were incorrectly used in the find
ings and that the condition of the
property is far better than represented.
Furthermore, the allegation that the
Young report was suppressed was de-
clared absolutely false. Representa-
tives of the receivers stated that the
report had been filed in Judge Gross
cups Court last June and was printed
in full in Chicago financial publica-
ton shortly afterward.
Reorganization Well Under Way
Coming on the eve OF the opening of
the road between Evanston and Nil
waukee, which will take place today,
the circulation Of the report and the
reasons behind the action puzzled those
who have assumed the task Of complet-
ing the line and putting the company
on it's feet again.
The receivers insisted that ever since
the property was put in the hands OF
Judge Grosscup last January until the
present time every step taken had re-
ceived the full approval Of the court
and the protective committee Of bond
| holders. The road has been completed
economically, it was asserted, plenty of
money is available for future needs,
and there is reason to believe that in
short time it will be recognized as
a. paying concern.
Regarding the statement that the
amounted to little more than $8,000,000,
while the indebtedness of the Illinois
and Wisconsin companies owning the
line aggregates $16,OOO,00O, it is stated
that this is not fair conclusion, and
that the items which may be charged
correctly against construction expense
eventually will show that no such
waste of money was allowed, even be-
fore the road went into the hands of
the court.
Frost in the Role of Victim
A. G. Frost, according to those who
have made close study Of the history
Of the property, was more sinned
against than SHINING. In fact, it is
authoritatively said he was made the
victim of "pawnb1oker tactics'' when
he was forced to borrow money to carry
on the work, paying huge commissions
and high interest in order to get the
cash. A large part Of the bonds is
sued by the companies never was sold,
being pledged as collateral for loans.
'FThe facts regarding the sale of re-
ceivers certificates were not given cor
rectly in the report printed this morn
ing" said Howard M Carter, counsel
for the receivers. "'The issue of
81, 100000 was taken by the Investment
Registry Company of London, England,
which had sold $1,5OO,OOO of the bonds
Of the Wisconsin company and which,
therefore, was interested in the roads
future. The price paid was IS.
We already have received $500, 900
in cash, having purposely refrained
from drawing the rest in order to save
interest. Of the money received we
now have $4,000 in the bank and
have spent $350,000 in completing the
road.
Charge Of Collision is Denied
1.-THE charge that there was collision
in the appointment of A. L. Drum &
Co. as consulting engineers is false.
Mr.. Drum had been identified with the
building of the road before the reeeiv-
ership, and he is recognized as an ex-
pert in traction affairs. He will not
get bonus Of $4,000 His commits
sion is per cent on the money actual
ly spent in road work, which viii be
about $4,000.
with reference to the statement
that material and ears were sold to Re-
sewer Moore tor less than they were
worth, will say that this material be-
longed to the Republic Construction
Company, and had been appraised three
times and inventoried four times. It
was not NEEDED and was disposed of with
the full sanction Of the court. In fact,
it realized much more than the apprais
ed value. The fund was made separ-
ate bank deposit to be held awaiting
the action of Judge Grosscup.
"The action of the receivers has mad
the approval Of the bondholders. Own
ers of about $8,00O,0oO of these securi-
ties have been in close touch with us
at all times.
master in Chancery Booth has IN
der consideration 100000 in claims
lof unsecured creditors, and in time he
will have them all classified Later
report will be made as to the status
of everyone to whom the Chicage and
Milwaukee Electric is indebted. -
Some of the charges made In the
published statement were denounced as
| grossly ibelous' by Receiver D. B.