The Detroit times., 1914-12-02


reported the proceedings OF the COM
mission.
| Attorney Merriam's remarks were
prompted by the publication OF testi-
mony brought out. Tuesday. when
I Auditor Clarence l.. Sykes told the
commission that there were no rec
ords of what became OF approximate
ly $4,000, 900 OF q bond issue or $780,
100000, or OF several million dollars
In notes Issued by the company.
Holding copy OF morning paper
in his hand and apparently greatly
agitated, Mr.. Merriam asked the at
tention of the commissioner immedi-
ately after the hearing was called.
! Wednesday morning.
The story which have here pre-
Isupposes that someone has taken
something that did not belong to him.
he said. 1T gives the impression that
there has been fraud in the affairs OF
the Pere Marquette and there is, in
fact, no basis for even supposing such
a thing.
Stories of this KIND go all over the
state, and even all over the United
States, and they impair the standing
of the company, both financially and
otherwise IL there is anything crook
ed in connection with the Pere Mar
Quette finances | want Mr.. Gutheim
counsel for the commission) or one
OF the commissioners to make fiat
statement 10 that effect before such
differences are published broadcast.
IL want to ask your honor II there
is not some way In which publication
Of such statements can be corrected
and the Pere Marquette and Its otfi-
Gals protected from such attacks"
Attorney Gutheim. for the commits
sion, replied that, while he had not in
tended to make any remarks about
Mr. Merriam's protest he felt obliged
to state that IL was not up to the COM
mission TO make any statements as 10
tho guilt or innocence or former Pere
Marquette officials. He declared that
il was not the purpose OF the com.
mission to make any such statement,
at this time particularly
The purpose OF this hearing Is to
get the facts into the record OF the
Interstate commerce commission, he
said THE representatives OF the
press have no outside means OF infor-
nation. We propose TO bring out the
facts and they are privileged TO sit
here and write whatever the evidence
indicates"
Commissioner Hall assured Mr..
Merriam that anything published In
the newspapers would have no weight
with the commission. and assured him
that incorrect statements, II there
were any, were doubtless the result
Of an immature consideration OF the
evidence.
Mr. Merriam made no attempt to
deny that large sums Of money had
not been accounted for, but Auditor
Sykes qualified his statement made
under examination, Tuesday, In a
typewriter statement which he gave
to newspaper representatives. The
statement follows:
II think | ought to make state
ment to correct the erroneous state
ments and interferences In the news
papers based on my testimony given
Tuesday. The proceeds OF the notes
OF the railroad company given prior
to 1905, and retired with the proceeds
OF the $6,000,000 OF bonds issued In
1905, as far as | have been able to
determine, went into the funds OF
the company and we're used for the
company. but those proceeds were
not separated from other moneys OF
the company. They went into Its
general funds that were drawn upon
for all kinds OF purposes. and II is
for that reason only that | cannot
tell how the proceeds OF those notes
were used. do not mean to infer
that the company did not receive the
proceeds Of the notes, or that there
was anything irregular in the hand
ling of this transaction The books
themselves show the receipt OF the
proceeds OF those notes. and that they
went into the general funds and were
used for the company.
Many OF the notes retired In 1905
were given, as far as | have been
able to discover for equipment pur.
chased by the company. have no
doubt that the commissions expert
accountants, who have been here for
Ave months, are already aware OF
those facts"
Mr. Sykes was kept on the stand
throughout the Wednesday morning
session. His testimony was almost
entirely corroborative of matter now
in the hands OF the commissions ex-
perts and dealt with the methods by
which the Toledo Railroad & Termin-
al company was taken over by the
Pere Marquette.
No irregularities were unearthed.
although there was some differences
u of opinion between Mr.. Sykes and Mr.
Gutheim as TO whether or not the best
bookkeeping methods has been fol
lowed out In recording several minor
transactions.
The Interstate Commerce commits
sion Is causing a complete appraisal
TO be made OF the Pere Marquette
properties, II was announced Tues
day afternoon. AS result the de-
cision OF the commission as 10 wheth-
er or not stock Juggling Is responsi.
bic for the present condition OF the
road will be deferred for several
months
General Manager Frank Alfred will
be placed on the stand Wednesday
Afternoon or Thursday morning to tell
or the present condition OF the sys-
tenn.
The hearing will probably consume
the remainder OF the week.