The Detroit times., 1914-05-26
RECEIVERS PAID
OUT TOO MUCH,
SAYS HAL SMITH
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Germs. etc, the orders OF the Pere
Marquette were refused He said that
Il vould be necessary 10 accompany
orders with cash 10 obtain future
service from manufacturers.
Mr.. Smith took exception TO items
IN the annual reports for claims TO
injuries to persons. outside ex-
penses" etc. declaring that, under
present conditions, the receivers are
not authorized TO meet any debts not
absolutely necessary To keep the road
in operation.
Requests from the score Of attor-
neys present for detailed statements,
sliJW the names OF recipients OF all
funds paid out were so frequent and
would have necessitated SO heavy an
expenditure and SO large an amount
OF work that Judge Tuttle granted
the attorneys for the directors TO the
bond issue authority TO retain an
auditor, who will be given free access
20 the books in order TO testify before
the court These services must be
paid for by the DIRECTORS.
Crop failures in certain sections OF
the country caused drop OF $500.
GEO III Pere Marquette freight re-
ceipts last year. according 10 Receiv-
er FELTON,.
Fifty-nine engines were condemned
ard retired from the service last
year. said Mr.. FELTON,. These were re-
placed by but Is new ones
Mr.. Smith attempted TO bring out
the fact that the engines being used
10y the Pere Marquette are heavier
than those In the service OF the Ann
Arbor, the G.. r. n I. and other lines
operating In the state. He attempted
10 show that the heavier engine
causes greater strain on the cars and
Lecessitates heavier expense Doth for
cars and rails. Mr.. FELTON, admitted
the scundness or this position but
said that. were smaller engines used
on the long-haul runs OF the Pere
Marquette, IL would necessitate
shortening OF trains and consequent
Increase In number OF engines which
would cause an expense greater than
under the present system.
There are, at present, 1871 bad
order" cars in the company's shops.
If funds can be obtained, said Mr..
FELTON,, TO repair the ones already in
the shops this number will not be In
creased
Obligations now due. or past due,
on locomotives, equipment, etc, for
which the property might be seized
are SC great that II would necessitate
practical suspension OF business.
should the creditors insist on taking
the property. said Mr. FELTON,.
or the entire system. the Canadian
lines are the only ones which never
showed a deficit until nine months
ago Mr.. FELTON, attributed the fact
that the Canadian lines fell down re.
Gently TO the open winter, which prac-
tcally cut off coal haus TO western
Canadian points.
or the 1900 miles OF American
trackage 500 miles in branch lines
show so heavy a deficit that the net
income from the remaining 1000
miles OF either self-sustaining or
proit-making trackage is eaten up, he
said Some branches lose money all
the year round
The Chicago TO Detroit line and the
line from Toledo to Ludington show
a profit on the years business. The
Grand Rapids to Petoskey line Is self
supporting, while the lines in the
Thumb district are barely able TO
meet operating expenses and some
times do not
The remaining lines show continu.
Gus deficits
or 3S4 miles OF track which should
ne laid with 95-pound rails. Mr. Eel
on said. 142 miles remain tracked
With old rails which are unsafe.
Equipment for laying AZ miles OF that
distance Is already on hand. The
rest Will have to wait, he said.
Attempts on the part OF counsel for
the bondholders and other creditors
OF the Pere Marquette railway to Sc.
cure delay In the hearing OF the petit
ton or the receivers for permission
20 issue $l2.00.0O0 OF receivers Ger.
ifcates were blocked, temporarily, at
east, by Judge futile, Monday after.
noon, when he declined IN act favor.
ably on the suggestion OF counsel TO
appoint master to take testimony
IS to the propriety OF expenditures
made by the receivers. the need OF
he proposed Issue OF notes and many
other matters In connection with the
recclvership
Receiver FELTON,, on the witness
stand told OF the poor and unsafe
condition OF the Pere Marquette
railroad year before August. 1872
he became receiver on Aug "a. 1912
land OF the attempts OF the receiv.
ers TO rehabilitate the linee.
"The main line is now In good con.
iitior." he said The branches are
not as good as we would like. We
have taken rail from the main line
and put N on the branches We have
expended s3,SO00O0 for additions and
be,terments or this amount. 81 .975-
200 vas charged 10 operating ex.
penses which. is case OF a reorgan-
izauiOn would have been added 70