The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1913-04-15
Z s. Skies Tells Committee Pere
larquette Directors Disburs.
ed Money Not Earned
T(RESUME HEARINGS
y LANSING, WEDNESDAY
Prters at Work on RepOrt-Ac.
ion by Present Legisla.
ture Is Unlikely

huul or traffic accounts for Ave
yearand has been with the road
sinceovember, 1904, was put on the
standonday morning. by the .egisla-
i've sstigating committee which Is
propi the affairs OF the railroad. He
was FUSED at noon, after he had
testif concerning the surplus ac-
countd the dividends paid between
1900 1906. and had admitted that,
from at the roads reports show.
divide must have been paid from
the Gangs capital, and not entire
~ frots surplus.
The,mbers of the committee re-
I. turned Lansing. Monday afternoon.
exceptut. Gov. Ross. who remained
In bet to read some statistics into
the rel, Tuesday. On Wednesday,
the coittee will sit in Lansing to
examin. II. Jennings, newspaper
man Was been gathering opinions
OF shipl which reflect on the road y
managat.
Il d know whether we shall
summother witnesses" said Mr..
Ross. have already begun work
on our 'rt. and have spent several
nights T."
1t Is ,cted that the committees
report recommendations will be
ready slime next week. II is
doubtfulhe present Legislature will
take aniion on It.
MT. was quiZzed by Senator
Smith.
The al report for 1900 shows q
surplus ,646.1S9,' said Senator
Smith. as any depreciation
charged hat year,"
The eciation may have been
included he operating expenses"
Mr.. Sikelswered. 1T may have
been incl In repairs and renew
ais. Tha,uld not be proper now
adays. bumight have been then"
What q be the proper percen-
tage to ce to depreciation?
Mr. Slkaid he was not compe-
tent to an that question. There
was a lonscussion OF his compe-
tency. Hehitted that there might
have beendepreoiation of / per
: cent.
III pent were charged 10
depreciation $53, 100000 in prop
erty, that d leave a surplus OF
only $ll6.0,r 1900" said Senator
Smith. "Inuary, 1901, a dividend
was paid OF capital. not out Of
earnings"
Mr.. Sikeslied that depreciation
is merely atkeeping account and
doesn't replt real money.
The real ey Is spent from day
to day, in rs" he said.
isn't deption different from
repairs" aslhe senator.
IF you kes repairs there is no
necessity .eciation,' Mr.. Skies
replied
Mr.. Skies red that the total
surplus for /. was 1921 .391. and
that $2.SO7 ass paid in dividends,
without chars anything to de-
probation.
Isn't II youdgment that the
surplus woulde been eaten up IL
the proper de!ation charges had
been made" a Senator Smith
Mr. Skies diAave any judgment
on that point.
Inc report 1905 shows that
the road had S262. and paid out
$53l.234 In dilds." pursued Sem
ator Smith. "Lhe directors have
any right to paose dividends?"
Il don't kno'hat their rights
were. but theydently paid out
more money thaey had replied
. Mr-Sikes-
Would you paid out $780,
600 in dividendsyou had no sur
plus to pay II FRI
81 wouldn't h voted for II, II
/ had been dir"
Mr.. Skies salhat the money
y which is being 4 by the Pere
Marquette as int. on the Toledo
Terminal Co.'S prty is a loan"
and that the cony hopes to get
1t back some day
Isn't concernolvent when its
debts exceed It's ,perty value?"
Y asked Senator Smi
IL wouldn't say II is insolvent
when IL can't get Il.
Wasn't the PeMarquette in
solvent when 1T pAalf a million
In dividends that it to take from
Its capital?"
"No. I shouldn't So"
1T would help e to make 1t
lnsolvent. wouldn't
1T would help s. yes"
Didn't the payn of that half
million make the PMarquette in
SOLVENT"
ut may have, or ,ay not"
There was inquiry Lieut. Coy.
Ross as to who watate railroad
commissioner when tdiyidend was
paid. The records sbd that Il was
Theron =. Atwood.t was then
brought out that the ual report OF
the Pere Marquette, n which MIR.
Skies was reading, wsot the report
submitted 10 the sta,ailroad com.
mission. the commin having a
blank OF its own thatluded n diff.
terent period OF opera. The com
mittee could not LEI from any.
thing In Mr.. Skies passion. what
knowledge Mr.. Atwo'had OF the
Pere Marquettes conon when IL
paid its 1905 dividend
The reports did ~. however,
that In It's statement ONE 80. 1905,
the road showed del OF s22.430:
that II paid a divide OF 1852. 100
sometime in 1906 and sed a credit
balance. In It's report ttwood, June
81. OF S202,0l2: while sionths later,
In Its 1906 report to alholders. IL
showed deficit OF ;O.947. Mr.
Skies was asked TO e,in this ap-
parent discrepancy Houldn't.
Mr.. Ross brought outom the an
nual reports. that in 19the cost OF
road and equipment wset ar s4s..
442,sl2. while in 1905 them known
as expense on account equipment
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