The Detroit times., 1914-02-28

any increase In rates.
The receivers have done q great
deal 70 improve the road." said an on
cial Saturday. ''when they took hold.
there were $1,000. .ooo of uapaid debts.
These liabilities have been decroasod
- e2.6o0. 900. They have spent ~
100000 IN improvements and alterar
tions to add to the roads eflcieAcy.
They have raised wages. % far ~
they could. considering the other de-
mands on them: and they would Yield
still further 70 the demands OF the en-
ployes II Il wers at all possible.
Physically. the road II In good
shape. Stories to the effect that the
property has run down. that the build
ings are dilapidated and that the roll
ing stock II ready for the wrecksr.
are ues--absolute lies. But the ROAD
cannot meet In obligations while ito
earnings are not adequate. On some
divisions. Il II earning a. much -
$1.06 q train mile. II can run. on
that amount. But on others. Il 10
earning only % cents Q train mile.
which n . loss. There IL one train
that II earning only ave cents Q train
mile, but 1t has to be run. On the Al
mont division. where there have been
% many kicks on the service. the
trains are earning only 10 cents q
train mile. In short. all these trains
are being operated at q loss"
Judge Tuttle'c order, which was q
verbal one. puts the Issue up to the
bondholders. The holders OF each H.
sue OF the underlying bonds--and
there are some Is issues-are repre-
sented by . committee. II IL likely
that these committees viii get togeth.
er and consult as to what action II TO
be taken. The receivers will give
them whatever information they re-
Quire as to the finances Of the road.
but. It is understood, will make no
recommendation.
II have every confidence In the abii.
ity and integrity Of the receivers of
the Pere Marquette railroad said
Judge Tuttle Saturday morning. II
think that everything possible II be-
ing done to untansle the financial mud.
die the road Is In, but refuse TO sl.
low overhead debts which would 70.
suit In the road being unable to nay
100 cents on the dollar on the underiy-
Ing bonds and the receivers' debt.
In effect. have simply laid the
cards on the table where all persons
interested can see every move that is
made or contemplated In the future.
have other cases bearing directly
upon the matter now before me, and
want to be impartial In handling the
whole business. The Pere Marquette
has petitioned TO be relieved from It's
- nj uvAt ~
eminent. complaining that the contract
rates are too low for profit. l also
have q demand from Pere Marquette
employees for higher wages. The Pere
Marquette contends that because OF
the high wage scale. the low-rate mail
contract with the government, the low
Interstate rate on freight. ETC., that It
Is unable TO make the earnings meet
the operating expenses.
We must provide for some kind of
q cushion to separate the earnings
from the overhead pressure OF the op.
Grating expenses. II there Is any way
In which this can be done, will gladly
assist. but ! will not allow myself to
be placed In q position where the fed
eral court itself IS likely to be thrown
into bankruptcy"
The receivers are proposing to the
bondholderS that $l2,6l4,S9l.2l be H.
eued In refunding certificates, 40 fol.
lows: Present indebtedness not In.
cluded In receiver certificates and
notes. $2,525.631.72: refunding OF out.
standing receivers certificates and
notes 40 they mature. 3,662. .O9l. ~:
matured and maturing equipment OBJ
legations. $l,377.167.75: cost OF block
signal system. 100000; taxes for
1914, $600,000: new equipment to pe
purchased. $3.50. 900.
With this money. II the bondholders
agree. and Il the. court permits the
issue Of the certificates. the receivers
hope to put the property in good
enough shape to enable sale 20 be
effected. There are also hopes that
the next legislature will allow an IN.
crease In rates. "A report has been
started that the fasteners interested
In the Pere Marquette mortgages will
even 30 20 far a. to have q candidate
for governor who will be favorable TO
their interests.