The Detroit times., 1914-05-27
BONDHOLDERS OF
P. M. LEFT TWIXT
DEVIL And SEA
Judge Tuttle Says Roard's Pre-
dicament Calls Plainly for One
of Two Things
CERTIFICATES MUST BE
ISSUED OR ROAD BE SOLD
Case is Continued for a Week
Putting Off Creditors, One
Mans Job

Judge futile will do one of two
things with the Pere Marquette re.
ceivership mess.
He will either sell the road or grant
the prayer OF the receivers for the
courts permission 20 issue $12,000,00O
worth OF receivers ceruncates TO OBJ
tain funds 20 keep the system in oper-
alton.
The hearing OF objections TO the
proposed certificate issue came 10 an
abrupt halt, Tuesday afternoon, when
Judge futile interrupted Attorney
Hinton f. Spalding, one OF the score
or more OF counsel representing the
underlying bondholders, and stated
his view OF the case.
The only issue In this case, as
see it. said the Judge. lis whether !
shall sell the road now or grant the
petition OF the receivers Tor the Ger,
tihcate issue"
But the court can take neither
course right now . protested Attorney
Spalding
Well. that's what am going 10
do unless you can show me some
third course" replied the court. 81
can conceive OF no possible avenue OF
escape nor alternative for The court
than this one-either Immediately TO
sell this road TO pay the courts debts,
or TO issue these certificates 10 take
care OF the systems most pressing OBJ
legations.
II feel that matters have simmered
down to these two courses and these
two only. II any OF you gentlemen
present can suggest third course,
the court will be glad to give it at.
tention."
This condition Of affairs is as dis
graceful as the receivership of the
D.. r. Il l. road. Just as no man in
private life may remain in good re-
pute unless he pays his debts. this
court would be disgraced by refusing
10 allow this system to meet its OBJ
legations" he concluded.
Attorney Spalding. who had re-
NAMED on his feet during the judges
remarks, at once moved for continu.
ance for one week. insisting that the
underlying bondholders were entitled
to this much time TO prepare to pro
tect their interests II the court ad-
hered TO his expressed determination.
His request was granted.
The afternoon session began with
the redirect examination OF Receiver
8. M. FELTON,, by Attorney Campbell,
counsel for the receivers.
His examination was brief. consist.
ing mainly in attempts TO refute points
brought out in the morning by Attor-
ney Hal Smith for the directors.
Under the questioning OF his counsel,
Receiver FELTON, defended his course
in purchasing the best grade OF equip
ment insisting that II was necessary
to use 90-pound rails and heavy en-
gines to care for the long-haul bust
ness OF the Pere Marquette.
Replying to criticism by former
Congressman Mccall. or Boston. rep
resenting the Massachusetts bond.
holders, Receiver FELTON, declared that
the average daily movement of freight
cars OF the Pere Marquette-l7 miles
a day-compared favorably with re-
ports from other systems. He said
that the comparatively short move.
ment OF cars was occasioned by the
large number OF branch lines OF the
road. He quoted figures from the bull
letin OF the American Railway asso-
citation, showing mileage OF freight
cars a day on other roads.
c. S. Skies, auditor for the receiv.
ers. was the next witness. His testi-
mony consisted mainly in identifying
exhibits and records taken from the
company's books.
Standing off" creditors is the prin-
cipal business OF Frank w. Blair,
president of the Union Trust Co, one
OF the receivers, who was the next
witness
What are your duties In connec-
ton with the receivership OF the Pere