Alma record. (Alma, Mich.) 1878-1928, 1915-07-29
pERE MARQUETTE TO BE SOLD

pERE MARQO T. j. ~ -
Fixing the upset price for the SAFE
Of the Pere Marquette railroad AZ
$4,000 900, subject to the underiy'ms
bonds and interest, which virtually
brings the price to $42,OOO,OOO' Judge
Arthur j. futile, Thursday afternoon
handed down his decree ordering the
road to be sold between now ana NO
vember Is. William S. Sayres' spec
cial charge Of the sale. -
The Pere Marquette has been IN the
hands of receivers since April D. l9lz
when the American Brake & Foundry
Company filed a petition for receiver
shin. following the admitted inapillty
of the road to pay an outstanding ac-
count due the petitioners
Following the appointment OIL re-
ceivers. various phases OF the case
arose and out of this came the pro-
lonoed harangue between the various
orouns of bondholders and mortgag-
ees. which ended in the decree order
inc the sale Of the road.
The mortgages were divided into
four groups, namely: the underlying
or divisional mortgages, 10 IN mum
Der; the consolidated mortgage; the
refunding mortgage, and the refund
ing and improvement mortgages.
The underlying mortgages covered
the original component parts of the
system and totaled S26,000,000 There
are two other mortgages which In ma
turo are divisional, but were not in
existence at the time Of the consolida-
ton. The first IS on 5he Pere Mar
quette Of Indiana, for S675,o00 which
was issued in 1903 and the other is
consolidation Of mortgages ON the
Canadian lines OF the Pere Marquette
totaling S5,S70OO0. This, added to
the original S26,OOO,O0O Of the under
lying bonds, swells the amount to APP
proximately $50, 100000 In addition
to this there are $5,OOO,OO0 in deben-
lures, which are virtually promises
to pay without any security.
The consolidated mortgage was is
sued shortly after the consolidation
of these separate divisions. 1t is
termed first system mortgage, but
in reality is a second mortgage be-
cause is came after the divisional
mortgage. The total bonds issued
under the consolidated mortgage are
$685., 900.
The refunding mortgage was issued
in 1905, its title being a misnomer, as
it did not refund anything-the pur-
pose being to issue new bonds for i'm
provements-and no outstanding in
debtedness was taken up. The total
amount outstanding on the refunding
mortgage is approximately 100000
600.
S16.O00,O0O Issue in 1911.
The refunding and improvement
mortgage was issued in 1911, and
bonds were issued as collateral Sc
curity to a note for Ss,OO000O. The
total bond issue was for $4,000, 900.
double the amount of the note. The
company was unable to pay the inter
est on the note, whereupon the bonds
were sold to realize on the note, and
the sum realized out of the sale of the
S16,Q00,000 bonds was barely enough
to pay the note. The total equity
D,,+c4,,,l;,,,, On, tl,o eof,,rJ;,o, opJ ~,
provement bonds is $S,000,000.
The total bond issue is slightly less
than S59,O00,000. To this are added
the debentures, the outstanding obi
cation for matured and unmatured
equipment including principal and in
terest, the receivers certificates and
receivers notes, bringing the funded
debt to $73,26700O.
tn original upset price of the road
as fixed by the court is divided into
three parcels-the property origin
ally mortgaged, amounting to $5,0OO,-
900; the interest on the consolidated
mortgages, amounting to $2,000,000,
and the assets of the receivers, a.
mounting to $40O0,OOO. In the de-
cree the court states that these three
parcels shall be offered for sale in
dividually and collectively. If the
lump sum exceeds the total of the
three individual bids, it will be sold
in lump sum, and vice versa.