The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1908-07-16
A. C. Frost Appeals to Receivers
Of C. & NJ. Road for Fair
Play in Receivership
WOULD BLOCK BIG SYNDICATE
Frost in Open Letter Declares that
Property is Being Ruined in
Order to Force a Sale at
Low Price

sale Of the Chicago & Milwaukee
Electric Road printed in Monday s
News, seemed to be confirmed in a let
ter written by President A. G. Frost to
the receivers given out yesterday.
President Frost says that an at
tempt is being made to discredit and
belittle the property by false state
ments to force the road to fore
closure sale.
He calls the report of a Chicago
firm on the condition of the road an
attempt to lower the value of the
road
His letter in part, follows:
Upon my return to Chicago, [
learned that the attorney for the re-
ceivers had filed a petition accom-
panied by the report of Arthur Young
4 Co., in which that firm makes state
ments and draws conclusions which are
false and misleading, and [ deem it
my duty to inform those who are inter
ested of the facts.
Attempts to Discredit
"The attempt to discredit and be-
little the property and it's earning
capacity by false statements, the with
holding Of facts, and the stating of
facts only in part are apparent
throughout the report, and as soon as
possible I will answer the report in
detail.
cit is we'll known that the earnings
Of this property during the months of
February, March and April are the
poorest OF the entire year, and owing
to the severe variety Of weather con
ditions last winter and the late season
this spring the earnings were seri-
ously affected by the loss of traffic.
In addition to this, the financial and
industrial conditions have been such
as to seriously affect the earnings of
all transportation companies, and this
has greatly suffered from
that source in common with others.
Yet with all of this the actual receipts
from the date Of the receivership, Jan.
%, 1908, to May 81, 1908, were $780,
851.o9. Young's report shows a net
income Of only $9,8O966.
Earnings of the Road
"The statement that the freight was
charged at twice the price it should
be is false.
Regarding the passenger earnings,
the checks sent from my office were
for transportation given away and sold
at the Chicago Office, and for the pur-
pose of assisting the property during
its construction stages, and I believe
that was justified in giving the com
pany every benefit during that period.
Regarding the cost Of the con
struction, that is about as unfair and
prejudicial a presentation as could be
made, ignoring the contracts between
the railroad company and the construc-
ton company, which were as favorable,
If not more so, than could have been
made with any construction firm. The
report omits the interest charges for
the capital invested in carrying on the
construction work until the sections
were turned over to the railroad com
pany for operation, which is legiti-
mate and just charge, which is taken
into account by every contractor doing
large construction work The report
also omits about 100000 of other
equally just charges. An honest in
vestigation Of the cost of construc-
ton and of acquiring the rights
and franchises will disclose the fact
that every dollar of the proceeds from
the sale of bonds is accounted for.
Statement is Misleading
"The statement that the floating in
debtedness of the company is $2,l69,-
10000 is incorrect and misleading.
Regarding the capitalization of the
company, it is no greater than that Of
other electric railroads that have as
great an investment in right Of way,
construction and equipment as this
company has-in fact, there are few
electric railroads in this country that
have the investment in right of way.
equipment, depots, station grounds, and
terminals that this company has. The
company has a most valuable property
one Of the best properties Of its kind
in America
ESThe tendency of the age is to yilify
and Islander. [ resent the accusations
and malicious charges that are being
made. Some Toll to build, while others
conspire to wreck and destroy I have
put forth my best efforts during the
past ten years in building up this prop
erty and have worked night and day
to accomplish that Mistakes doubt
less have been made, as are made in
every large undertaking. Perhaps too
much money was spent in original con-
struction had my desire been to build
for stock jobbing purposes, cheap
construction would have accomplished
that-but I am confident that the
future will confirm my judgment in
building so thoroughly for the future.
Reassures Stockholders
9The stockholders, bondholders and
creditors Of this company should not
I