New-York tribune., 1912-04-07
.PERE MARQUETTE PLANS
Holders of S5,OO0,000 Debent'
ureS Form Committee.
OTHERS TO FOLLOW SUIT
Member of Roads Executive
Body Thinks Receivership
Will Be Short.

,.nrote,tive committee for the hoiders
of the S5,OOO.O0O per cent hVe year ueoen
ures OF the Pere Marquette "''ic"
nlaced in the hands of receivers ioi '"e
second time in its history on fridaS' vas
formed Yesterday. Committees for the pro-
,ec,ion of the holders of the other outs'a"o-
inc securities of the road are expected %
be formed early this week
The committee representing the holders
of tho e. 900 GO debentures is composed OF
Alexander ]. Hemphill, president OF the
Guaranty Trust Company. chairman; Al
hort n. Wiggin. president of the Chase
National Bank; Charles w Cox. OF Robert
Winthrop g. CO.; Francis r. Hart, of the
Old Colony Trust Company. of Boston. and
Eugene V. r. Thayer, Vice-presldeht Oh thc
American Trust Company, of Boston
These s5.OeoO 900 debentures were ISSUED as
part of the reorganization plan of 1907. ana
were subscribed for by the stockholders OF
the company. The proceeds were used IN
paying the floating debt OF the old Pere
Marquette Company, the receivers certiii-
Gates and for other corporate purposes in ac-
cordance with the plan OF reorganization
ratified by the stockholders on December 3,
1891 The debentures mature on July | of
this year.
\ representative of the company said
yesterday that tentative arrangements had
been made, before the receivership. to meet
these notes at maturity. but now that re
ceivership had been appointed, the holders
Of these debentures, in common with the
holders of the other outstanding securi-
ties of the road, would have to wait until
some plan of reorganization had been
adopted before they received their principal
or it's equivalent in the securities of some
new company that might be formed, as the
case might be.
Interests identified with the Pere Mar
quctte in this city seemed to think that the
conn any had not been trPated fairly by
the Michigan State Railway Commission,
and gave it as their opinion that politics
was largely responsible for the ie-
fusal of the commission to give the
road authority TO issue N,00,c' OF
bonds These bonds, ii was explained. were
not to be sold AS reported in the dig
pat ,hcs from Detroit, but were TO form the
collateral back OF 100000 notes. which the
company was TO deposit with the Guaranty
Trust Company as security for loan ~
somewhere near that amount
The proceeds Of the loan were 10 be used
by the company to meet it, April maturi-
tics, and was the only way left TO II of
raising money as il was unable to sell any
securities because Of the fact that IL had
not been earning it's fixed charges. The
notes are part OF an issue OF Slo.ooo.O0o
authorized In March, 1871, of which 800
CpJ wer. sold.
a member OF the executive committee
of the road in commenting yesterday upon
the decision OF the Michigan Railroad Com
mission. said:
1t was simply an instance OF tho state
refusing the company permission TO pay it's
debts"
He added that he believed the receiver
ship would he a short one. and that tho
situation could be adjusted.
The Guaranty Trust Company announced
yesterday that II would purchase the cou-
ponS due April | on the outstanding 1900,
0oo first mortgage per cent bonds OF the
Flint q Perc Marquette Railroad Company.
The latter road was consolidated with the
old Pere Marquette In November 1889 and
has been part Of the system since then.
The bonds in question are first lien upon
80 miles Of road, comprising the line from
Munroe 10 LudIngton. Mich.
The offer Of the Guaranty Trust Company
to purchase the April coupons had nothing
10 do with the reccivcrship action. it was
said yesterday. but WAS decided upon some
time ago az temporary measure to relieve
the company OF the necessity of meeting
this interest payment until IL had recov-
cred from the hard winter IL had lust
passed through. and was i'm a position to
earn its fixed charges.