The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1913-04-11

~ tH@"r' "' ~0"'ft r~asZrtt,
the extension of its terminal fac1ites There are
millions upon millions of money, TO be obtained
from some source, to develop the railroads OF
Michigan Where 10 the Pere 4rqustts to Get In
money? Assuming the facts to be "a have said-
assuming reputation at the instance of the State
OF millions Of dollars Of tn securities iauued under
the circumstances have meutionedcis there q
sane man in the State of Michigan, with knowledge
OF these assumed facts, who would buy railroad
stock or railroad bonds3 The State would be in
the same class with some Of the southern States
which repudiated their State indebtedness. It
would put pail on the development Of every pubtc
service corporation N the State OF MicaG1n.
Neither the citizens Of Michigan the citizens of
any of the United States would, at any price, huy
a dollar of the securities Of tho Pere MarQnette
Railroad Company, or of any other Michigan public
service oompany,-with knowledge Of such wt0as-
sale reputation / have assumed. Il would Be
impossible to expand or to enlarge or to improve
or to meet the necessities of the railroad Company
But that is not all: Wages are going = be m
creased; we haven't yet reached tho top noech IA
wages Tile cost OF materials = gong 70 i1cSeaoe
We haven't yet reached tho highest price for coal
and for other materials and other neoessjties.
There isn't anything that a railroad company buys,
-andt buys almost everything On earth,-thk b
not going to advance IN price. Let ~ assume that
railroad rates continue the same, that every time
we ask to increase rates, the State continues to say
no, you can't do it rates continue the same; ex-
penses, after this assumed rspodaton Of debt, con-
tinue to rise; and pretty another de6cik i ere
ated,-nevitable in the assumed circsnstanceay-
as sure as the sun is to rise. What are yoa going
to do then? Are you, at tho end of another FIVE
years. going to squeeze out" to force the rspsdia-
ton Of another ten twenty twenty-five milan
OF debt, to make the earnings Of the road
cover the interest charges the remainder? And,
If so, how long is that process to continue? And
what is going be the reputation of the State of
MIrhi <taoA~ Al a.
continues in it? have lived in ths state ~ years
of my life; expect to live here again some time;
and say to you, in all candor, that you win make
the greatest mistake of your G&e,-I am speaking
to you now as if you were The State Of Michigan
you enter upon any such policy; Il win Be the
worst thing for the State Of Michigan that it could
do through its legislature; there ISN'T anything that
will do the State greater harm than will come if,
by reason OF these temporary conditions to which
have referred It compels q repudation Of any
part of the debt of the Pere Marquette Railroad
Company.
Now. that is what mean when say that il will
be sorry day for the State when It cornpeb
reputation of the honest Liabilities of this
Company.
What has caused all this talk about ~squeexing
out the water? 1t has only taken place within the
last year--never was heard before. The deb< fas
been increased right along, for purposes that have
explained without anything beng said against the
proprety of it; in fact, with the Michigan Redwood
Commission approving it, and properly approving
it. What is the cause of ali this disturbance over
the subject today? Simply because year ego 0,e
road went into the hands Of receivers. Why did Il
go into the hands of receivers? Because il had su-
fered deficit in its operations for two years. Why
did it suffer deficit? Because wages were in
creased because its cost of materials was greaAer;
because it not permitted 10 change any moro for
its service. 1t has been throttled at each ed and
such conditions applied TO my Industrial concern
will produce the same result"
(In No. of this series, to be published
soon, the facts respecting the other junior
securities will be presented)
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