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

liquidation:
Notes dated March I, 1911 s. 8,OOO0 900
Notes dated February, 1912 ( 100000
Dsbentures dated July I, 1907 ...... 100000
Frat Preferred Stock, par Uolue. 49,. ID, 100000
Second Preferred Stock, par Oalue. $4,000
Common Stock, par Uolue. 100000
The presentation will consist in part of
quotations from the statements of Frederick
w. Stevens, who for "a years resided in
Michigan, who has been intimately connect
ed with the business of the Pere Marquette
Railroad Company since the year of it's or
ganization O9OO) and who voluntarily ap-
peared before the recent Legislative Com
nittee and gave detailed testimony concern
ing all the financial and other affairs of that
Company, during it's entire existence,-his
testimony being first in the form of a nara
tive Gao printed pages), and afterwards in
answer to questions by the Committee
(about 1870 additional printed pages).
In his preliminary statement Mr. Stevens
said
Since the appointment of Receivers of the Pere
Madquette Railroad Company in April, 1912, the
Con1panys affairs have been the subject of con-
siderable discussion. Upon the assump-
tion that many of the outstanding securities upon
which for time the Railroad Company found itself
unable to pay interest were issued for little moth
ing in the way OF cash or property, much has been
said about squeezing out the water; it seems to
have been assumed that wipng out of such Sc
curities would be creditable we'll deserved punish
tnent of somebody, and of benefit to the State.
Under the circumstances an opportunity to state
the facts is welcomed by security holders
What were the circumstances under which the
outstanding securities Of the Pere Marquette we're
issued? To what extent were they issued with the
approval of the public authorities of Michigan
appointed to supervise the issue of securities by
railroad companies?
What was the cause of the Company's inability
during the last two years to pay interest on all of
its obligations? Was it due to the wrongful use
of the Company's funds, to unlawful improper
Withdrawals of money from its treasury to the
n1iSappIcation of its earnings was it due chiefly
to the increased cost of living about which every
body is complaining?
To what extent was it due to circumstances alto
gether beyond the control of the Railroad Com
pany? What substantial increases in the wages of
its employees has the Company been required to
meet? To what extent is it purchaser of fuel and
other materials and supplies, and how has it been
affected by the increased cost Of such commodities?
What has been the effect of federal and state laws?
Have they substantially increased expenditures
BY railroad companies? Have they prevented the
ordinary and natural increases of ncome2
Is it possible that railroad companies are like
other industrial concerns, which must meet in
creased expenses by increased income?
What has been the attitude of the stockholders of
the Company in recent years2 Have they with
drawn, as dividends otherwise, directly or indi-
rectly any of the Companys funds? Have they
not. on the contrary supplied the Company with
immense sums of money at times when no one else
would do so?