The Detroit times., 1913-03-24
THE DETROIT TIMES: MONDAY. MARCH "a. 1918

/ the light OF subsequent Developments.
/ may please a few who have personal
grievances or one kind or another. but
trary. Its tendency will be 10 harm the
state, because Of the Influence II VIII
. have upon. subjects ] have ALREADY
mentioned. On the other hand. III you
shall reach the conclusion. as | believe
You must. that for several years the
finances OF the Pere Marquette have
ner That its stockholders have adj
vanced over $4,000. 900 In cash for good
and lawful purposes. all OF which re-
mains unpaid at this time. that there
has been general MISUNDERSTANDING n
the minds OF the public as 90 the causes
OF the.fPere Marquette's present hnan-
cipally the result OF natural causes
! then, allow me to suggest you should.
| Ia some appropriate way. make known
the Facts In your report.
| F1rth-lf l may make another spe-
cihc suggestion, IL Is that the commit
tee bear In mind that the property and
now in the absolute custody md con.
| troll OF the United States court presided
over by one OF Its well-known and dis
tinguished citizens, who Is represented
, other well-known citizens or high
| standing. and by still another who hal
his experience in dealing with operat-
Ing problems: that Indebtedness AFFECT
Ing the property can be incurred only
with the approval Of the court: that
substantial progress has been made In
bringing about better operating condi-
ions and better operating financial re-
suite that the. public authorities OF
Michigan should patiently await devel-
opments OF the future, reco gnizing the
Improvement already shown and the
nope or greater Improvement now en-
| viii make II more difficult for reor-
| ganization committee TO present a reor-
ganization plan to the public authori-
ties OF the state as soon as circum :
stances make that practicable. The
| difficulties working up such a plan and
In obtaining the moneys TO carry II
with the cordial good Will OF the public
authorities Of Michigan. believe II
| can be done at no distant day. with
credit to the state and to all concerned
| The legislative committee evidently
did not relish the remarks of Mr.. Stew
ems concerning the remedy for the
Pere Marquette situation.
The statement which you have pre-
pared does not meet the expectations
OF the committee" said Lieut-Gov.
John Q. Ross who conducted the ques-
| tioning In the absence of Senator
Smith. I'VE expected that you would
give us your idea Of solution under
the existing conditions. Do | under
stand that there can be no solution un-
til the state takes the steps you have
outlined?"
NO." said Mr.. Stevens, mot alto
gether, but II you take those steps, II
will make reorganization on a salts
factory basis certain and prevent a re-
currence Of the conditions under which
the Pere Marquette Is now laboring."
I'VE wanted your opinion on wheth-
er the Pere Marquette could continue
business and carry the Interest on the
present funded debt" pursued Ross.
II have already stated that be-
lieved 1t would be a great mistake for
the state to compel the reputation OF
any of the debts of the Pere Mar
quette, and have gone ahead on that
assumption" was the reply. ANY
steps forcing reputation would be a
disadvantage II not a disgrace to the
state"
rs 1t fair to ask the public to re-
imburse the road for losses which have
been sustained through mismanage
ment or worse as you have suggested
in your narrative? Do you want the
state to change the laws so that the
road can make up these losses?
II only ask that the road should be
allowed to charge a reasonable rate,
replied Mr.. Stevens, that the state
recognize that the railroad must
charge more than the present rate al
lowed to pay expenses is sparsely set
tied territory"
do you not think that the burdens
imposed improperly upon the road
should be cut of from the road?
asked Ross.
1T would be impossible without In
Justice to many innocent holders
Are these holders any more limo
cent than the people Of the state who
are asked to reimburse the road TOT
these losses?" was the question.
1.-THE public should not be permitted
to travel for less than a reasonable
rate" maintained Mr. Stevens. the
state before it exercised its guardian
shin over the issue OF railroad securr'
ties trusted to the Judgment or the di-
rectors and 1t canont raise question
now after 10 years without doing a
moral wrong
"If your recommendation should De
asked by your Arm on the question OF
putting 100000 more into the roau
would you recommend it?"
81 should advise the Arm to await
the action OF the legislature and the
results OF operations for the next rev
months"
is it not impossible for the Pere
Marquette to earn its present nxed
charges"
IT cannot answer that question den-
nitely, but will say, as | said before,
that | have strong hopes that 1t VIII
be able to do It."
Chairman Lawton T. Hemans, or the
state railroad commission. was an IN
terested spectator in the hearing, Mon
day morning.
Mr.. Stevens was still on the stano
Monday afternoon. and later }. L.
Cramer, controller Of the road, was