The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1913-03-22
+. W. STEVENS WILL
OUTLINE PLAN PLAC-
ING Z. Nj. ON IT'S FEET
Continued from Page ouep

Continued from Page OueD
ems on the business ability OF the
members of the board OF directors.
who according To the list OF stock
| holders have little stock Ia their own
right, being chiefly representatives OF
1.-The interests OF hondholders and
! others. Mr. Stevens told the commit
tee that several members OF the
| board OF directors had had wide rail
! reading experience and were consid-
cred highly capable railroad men.
| Senator Smith stated that the COM
mittee had been told that the direc-
tors paid little attention TO the af-
! fairs OF the Pere Marquette, being
interested ettfer-fesAs,- Mr..
Stevens replied that the directors
/ held meetings nearly every month, In
which the affairs OF the road were
1 presented by Mr.. Cotter and exam
lned closely by the directors. He
stated that the executive committee
held frequent meetings in addition
Were the representations made 10
the Michigan railroad commissio
In connection with the issue OF tho
100000 collateral trust notes a
FAR statement OF the conditions OF
the road, asked Senator Smith.
They were the same representa-
P. Morgan & Co, to induce them TO
! put Ss,000.000 In cash into the
road. replied Mr.. Stevens.
| Did the board Of directors consider
the manageme nt of the Pere Mar
| quette for the past Ave years iuefti-
cient?" was the next question
| Il do not feel competent 20 speak
in a critical way on that point" said
| Mr.. Stevens, but do know that
there has been an improvement in
operating conditions under the man.
agement OF MIR. FELTON,. Some OF the
members OF the board felt during that
! time that there must have been some
/ thing wrong, but If the majority had
thought so. there would have been a
/ change"
The committee has been told thar
Mr. Cotter did not give enough atten-
ton 10 business. that he spent his
time In California playing golf sug-
gested Senator Smith.
Mr.. Cotter in the course OF his con-
nection with the road. found il neces-
sarY- TO discharge some officials ana
| their Judgment on his usefulness can
obviously be OF little value" replied
Mr.. Stevens. He took no more vaca-
tons than man ought 10 take TO
keep In condition for work.
Mr. Stevens stated that the annual
salary paid Mr. Cotter ranged from
$4,000 10 10000 and that under the
T., Il.
Senator Smith then went into the
Chicago termina! deal, In which it has
been charged that the Pere Marquette
paid $4,000 a year for the privilege
of stopping at three stations, and Mr.
Stevens stated that he did not recall
any such transaction, though it had
been necessary for the Pere Mar
quette TO change its terminal arrange
Baents- -some-expense -in order 10
compete with the other roads ana
give the public good service.
1T Is proof OF our generous atti-
tude TO the public" smiled Mr.. Stew
ems
The arrangement between the c., n.
4 D., and the Pere Marquette was
also brought into question, and Mr..
Stevens stated that after the recelv-
ership the c., II. & ID. had been forcec
TO pay the loss which the Pere Mar
quette sustained through the opera
ton OF the through trains.
This was another accommodation
TO the public without profit for the
Pere Marquette" added Mr.. Stevens.
Mr.. Stevens was asked as to the
wisdom OF the deals TO get into Chi
cago, and remarked that hindsight
was always better than foresight in
railroad matters. II know where you
are getting these criticisms" said he.
evidently referring to J. r. Simpson.
who testified before the committee
earlier II Is easy enough for gossip
-nrs 10 find fault and ask for explana-
tons in a few minutes OF transactions
that were studied for DAYS and weeks
by men most familiar with them"
The question OF depreciation charge
was brought up next, and Mr.. Stevens
stated that the depreciation charge
made by the Pere Marquette, exclu-
sive OF the charges for repairs and
reoewals by which equipment was
kept up 10 date. amounted to one-halr
OF one per cent OF the value OF the
equipment.
Closing the hearing. Senator Smith
asked II II would be possible for the
Pere Marquette to earn operating eN-
peuses and charges which the senator
figured at $40. 900 600. and the qucs
ton was referred 10 Mr. FELTON,. who
stated thar The gross eainIngs would
probably not reach hat figure. but
that Sena Or Smith had rot made hia
a L. 10, Il M M
railroad accounting a the amount or
GENERATING expenses is proportional 10
The gross carvings.
~ Is evrocted that Samuel ". Eel
ton. president of rhe road. will BE- the
next witness examined when the COM
mittec resumes IT, sessions. Monday.
Pole II Convicted.