Strike bulletin. (Clinton, Ill.) 1913-1915, 1914-03-24
P. M. FACING DISSOLUTION



's'-s~., os Mo.~, i.,..'~a
DETROIT, March '.-loWetf4l moncSed inter
,sls including siA wealthy ttust companies OF NV
h"Ga!fe resident 81 Massachusetts. all trustees OF
'aftous Pee Marquette bond issues aggregating
m"fe than si20oo.ooo written suoe TIA. tgani<l-
sioh "i TIE ialfoad III 800 are sald 70 be quietly
advocating thu candida Of man Tor governor
Of Michigan Who II wiling 10 ibflurnsA. legislation
ia'"tah" 10 the property ami ma ether Ways Iend
HI, Assistance IN b.half OF the underlying boni-
holders
According 10 a prominent Detroit banker. man
VIM Is Ia Close touch with The iutricaoes Of Per
Marquette InHHciug The bondholiers UP
against II Now that Ia" federal court has
dered the suspension Of interest pa meui. except
On receivers certificates. these must look state
legislation that VIII iuor.as. very materially rail-
road freight rates or direct financial aid from tn
state H. they will be heavy iosers IN forced
sale Of the property. receivers debts Of large
proportions must first b. paid
The bondholdefs the banker SAYS do not want
"A forced sale of IT,, property al his time ana ON
that account probably VIII not oppose the proposed
Issuance Of s9e00.0o0 additional receivers c,rtifi-
eat.s 10 lau4dat. outstanding obIiuations ,v,Iust
It, In other words. the concerns and individuals
Who haNe invested most u the cash In the railroad
sinee 1900 are booking Ia The state Of Michigan
position Of the road until the state has turned
them down drcisively and finally.
Fsrisx Di..oissios.
Unless tho state Of Michigan comes To It's aid the
ftre Marquette faces almost certain dissolution.
This Is conceded IL is said by the three receivers
at The property and By Unit.d states Crcut Jud 70
Arthur J. Tuttle who recently forbade the payment
Of interest on all bonds and stocks and other
standing paper. with the exception OF receivers
certificates amounting to t3s63Us477. representing
money borrowed within The last years by the
courts order for running expenses and improve
ments
Judge futile. 1t is authoritatively stated has
been unable to sell the property for sum approx
mating sSeoooovo in spite OF the fact that II was
previously capitalized at more than 10000 900
He has found no one TO take over the road--as a
bonds sold by constituent companies prior to 1890
and the payment OF debt OF more than $4,000. geo
which has accumulated since the road went into
the hands of the receivers.
Because additional debt has been piiing up rapid
y. Judge futile took the drastic step in forbiddns
the payment OF interest TO stockholders and bond
holders. His order make II possible for the under
lying bondholders to foreclose on the property a,
soon as their interest lie defaulted.
Judge Tuttles position IL that the court will ne
longer assume the responsibility of holding tn,
road as system while the deb, against 1t piles up
His action puts responsb Utility squarey up to this
underlying bondhoiders They can forec1ose II they
like II they prefer to foreso interest on theii
bonds and leave the property In the hands of tn.
court. they do that But the court ha. decreet
that II the road remains In his ha nds every aoiar
OF earnings must be spent In maintenance AM
betterments at least until IL IL on paying basis
II the property Is left In the courts hands Judg,
futile, IL II said will favor the issuance of add
tional receivers certificates of more than ss.ooo.
ooo. making total debt of more than 81 2eeo. oo'
ers get anything With this expenditure he hope.
that the property can be brought 10 a condition
where II can be sold as system or at least 50
that 1t will be In a position to gSe good service
Total over sis.sIs.seA
The receivers certificates issue which Is
asked totals tiesi4.ssl2i This Is to take up the
present outstanding receivers certificates as they
mature. IN Indebtedness of ts.Ss5.s3i.7s not
included In the certificates. matured and maturing
equipment obligations OF tl317.1s7.75. taxes for
1914 amounting to 100000 and for block sigma
system costing 100000 The receivers ask slst
81 .25e. goo for new equipment. II the court con-
rents TO the new certificate issue the underly ~
hondhoiders figure, u Is said. that the road can
get along comfortably until the next session OF
the state legislature and probably longer. Ths
receivers say that with u,sso,oeo worth of new
equipment and the cancellation Of some OF the
can be placed on paying basis II Is said. though
that the bondholders have little faith IN this al
rection and believe the only way they get
cut" Is through state aid.
Dee.st Ray Expenses.
In the last year II is stated. the receivers have
been unable to make the road pay operating eN-
lenses alone Depots and other building property
Is falling into dapiiation: the battered freight
diton that loss In operation OF them Is greater
than the interest Investment in complete
equipment of cars would be
The roads motive power is made up OF col
lection Of engines that likely TO stall at the
first cold weather on the slightest grade. The
Inefficient service has inevitably driven away
patronage.
The system is 81 run down. physically and fnau-
cially that money cannot rehhhiltate II. What 4.
need experienced railroad men such a
those who built the road and kept II on "A paying
basis for vars. But these forced
on strike They are On strike now, and viii stAs
out Until n" 4 VI comedies them their rights
restore the people Of Michigan the service for.
mrrls given by the road. there Is only eours,
TO pursue The small concessions asked hN thf
strikers must be allowed. and with these men again
at work the = NJ. will senn be In paslllon &,
give good service and pay interest on the bonds
and securities
= Huntington has resigned general str'r