The Detroit times., 1914-05-26

according TO the rules OF the inter
state commerce commission"
The road has been brought 10 nor
nal. has Il not?" asked Henry NJ
Campbell. attorney for the receivers.
"All but In equipment" replied Mr..
Feltol Our equipment orders are
being refused. We can't get the sup
plies We need. IN this condition goes
on, we will have 10 cease operations
We Will exhaust our resources for
coal We have had 10 change credit.
ors rs dealers have refused TO honor
our orders"
Mr. FELTON, said that no new freight
cars were brought between 1907 and
1912, and that $3.50 900 is needed to
repair cars In bad order. al about
$3.50 per car.
Hal II Smith. attorney for the
bondnolders. declared that the ex.
penditures which the $4,000. 900. or
part OF IT, is supposed TO cover. ought
10 be apportioned among the. various
divisions. SO that each group OF bonds
coulG have its proper share
we can't conceive OF a disposal OF
the certificates without knowledge Of
the exact lien which they viii have on
the property" he said mo division
should be charged with lien II II is
confessed that there has been no ex.
penditure on that division"
Mr.. Smith and Hinton r.. Spalding,
for tho Farmers Loan Il Trust Co.,
o. New York. trustee OF the r. a A.
NJ mortgage bonds OF 1901, asked for
the appointment OF a master for the
taking OF testimony covering all the
expenditures involved in the consider
alton Of the proposed Issue OF $4,000.
900. Mr. Campbell objected
1T seems impossible TO impress on
these gentlemen that the road must
have immediate relief" he said. 1T
viii be difficult 10 continue operation
at all. not 10 speak OF good service.
unless we get immediate relief We
are ready to give all the information
we can"
Mr. Campbell cited cases TO show
that courts have directed the imposi-
tlon OF liens by mileage. irrespective
NJ the expenditures by divisions. and
that when immediate action is neces.
sary, the lien was not settled at once,
but " hen the necessity arose.
Mr. Spalding, in reply, said that the
receivers had not spent money as the
court had directed.
They spent twice as much for RAIL
and half as much for equipment. as
they asked permission TO spend, and
as the court authorized" he said
1--WE wish 10 preclude the possibility
OF the recurrence OF sucn action. Ref
creme to a master is the proper
course 10 that end.
Mr.. FELTON, said that the, receivers
took part OF the $3,5000G issue OF
receivers certificates intended for
equipment and used II for new rails
because the rails were needed before.
equipment.
Judge futile declared that he was
willing, himself to take all the testi-
mony required. and the case proceed
ed. Mr.. Smith examining Mr.. FELTON,
for the rest OF the afternoon.
The hearing brought out multi
tude OF lawyers Atty.-Gen. Fellows
was an interested spectator. on behalf
OF the state OF Michigan. Hal II.
Smith. OF Beaumont. Smith & Harris,
appeared for w. w. Grape, trustee
OF the r. & p. NJ. first mortgage bonds
OF Oct /. 1880, and for the lnterna-
tional Trust Co. John c. Donnelly, OF
Donnelly, LISTER Brennan Muno
appeared for the New England Trust
Co. the Old Colony Trust Co., and
the New York Trust Co. John T.. r.
Taylor, OF New York, appeared for
the Central Trust Hinton r.
Spalding and Mr. Geller, OF Geller.
Rolston G Koran, OF New York, APP
peared for the Farmers Loan 4 Trust
Co II. E. Bodman, OF Angel, Boyn-
ton. Mcmillan, Bodman q Turner, and
Roberts Walker. OF New York, APP
peared for the Bankers Trust Co. r.
Winthrop & Co. equipment creditors,
were represented by f. p. Grosvenor
of Cadwalader. Wickershal a Taft OF
New York Various issues OF deben-
lures were represented by Otto Kirch'
ner, OF Detroit And there were pres
ent about a score OF minor lights, rep
resenting various interests.