New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-02-24
PERE MARQUETTE CHANGE
Newman Erb Elected Director
and Chairman of Road.
MORGAN HAD CONTROLLED
Road May Be Turned Over to the
Chesapeake & Ohio for
Addition,

p.rorts circulated toward the close OF
,.s, year. that Newman Erb and his asso-
,la,es were seeking to acquire control OF
he Pere Marquette Railroad, found some
conformation yesterday when 1t was an
no,,nced that Mr. Erb had been elected
director and chairman of the executive
cornmittee Of the road.
practical control OF the Pere Marquette
has been held by ]. p. Morgan & Co. since
March 1911, when the firm acquired the
: cincinnati, Hamilton & Dayton Railway
rennoznys holdings In the property
amounting TO 10000 out Of the total of 26l,S65
shares of common stock outstanding.
whether or not the Erb interests had
purchased the Morgan holdings could not
he definitely learned Yesterday, both Mr..
rrb and members OF the Morgan firm re-
hslng 70 discuss the matter, but that the
former had acquired a controlling interest
in the Pere Marquette appeared probable
4 from the fact that the board OF directors
adopted a resolution giving the chairman
Of the executive committee supervising
control Of the executive and administrative
affairs Of the company, which includes the
financial and operating departments.
The purpose OF Mr.. Erb and the interests
associated with him in securing control OF
..he Pere Marquette is said TO he to turn 1t
over to the Chesapeake & Ohio. 10 which
Il would prove an important acquisition,
as it would give that road about 2'4oo miles
of additional line The Chesapeake Ohio,
through its Hooking Valley branch. con-
meets with the Pere Marquette at Toledo.
REPORTS from Boston several months ago
said that q syndicate headed by MIR. Erb
was offering to purchase the first preferred
stock of the Pere Marquette, and that as
soon as a sufficient amount of this stock
had been obtained to make respectable
showing negotiations would be begun look
ing TO the acquisition Of the common stock
sfheld by J. T. Morgan & Co. Since then II
'sbas been reported that sufficient outside
Tsstock'. had been secured to make, with the
Morgan holdings, 81 per cent of the total
outstanding. and negotiations for the acqui-
sition of the Morgan stock were in such
shape. II was added, that they could be
closed quickly.
So far as announced. the only change In
the management of the road has been the
election of Mr. Erb as a member OF the
board and as chairman Of the executive
committee other members OF this commit
tee are william Cotter. Francis 3. Hart
L T. Loree, George W. Perkins, William
Fl. Porter. Norman 3. Ream and Frederick
W Stevens, all of whom have been mem
bers of the board for some time Mr.. Cot
ter is president OF the company and Mr..
Perkins chairman OF the board.
Speaking Of the outlook for the road, Mr..
Erb said Yesterday:
Until 1911 the Pere Marquette had not
prepared for the natural development and
increase of its business and was endeaVOr-
ing TO meet about % per cent traffic eX-
pansion without any corresponding increase
of its facilities or adequate improvements
for economical operation required by the
gradual reduction OF rates and increase OF
wages in recent years: but during the last
calendar year the company expended up
ward Of 100000 IN revision of grades,
double tracking fOrty-seven miles OF main
line. adding twenty-five miles of passing
arc siding tracks. new rcundhouses, en-
lsrserlent OF machine shops, many new
steel bridges and other important improve
nentS.
,flie 81 100000 common stock of the Pere
Marquette Railroad Company, which has
been held by j. p. Morgan & Co. for the
last year. was bought by that firm from
the Cincinnati, Hamilton & Dayton Rail-
Z way Company, which Is now virtually con-
y trolled bNS the Baltimore Ohio, under an
arrangement by which IT Is to acquire the
controlling stock at the end of seven years
from July !. 1869. at price then to be
fixed by arbitrstors. The Cincinnati Ham
ilton & Dayton had bought the Pere Mar
quette stock. carrying virtual control, in
1904 and 1908, in furtherance Of a plan for
establishing the Great Central Route"
rHhcn was 10 include also the Chicago,
ciucInnet &, IouisviIle now a part of the
Chesapeake & Ohio system.