The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1915-05-04
JUGGLING Of
Pm. BOOKS
IS SHOWN
Sensational Testimony
Given in /. C. c.
Hearing
BONDHOLDERS'
CASE UP, MONDAY
Petitions for Immedi-
ate Sale of Road to
Be Heard

fere MarQuetto nlstory were
dragged from their closets. and their
rotting bones ratified for the edin-
cation Of the Interstate Commerce
commission In United States court
room. Monday morning.
kilograms from r. H. Prince,
chief agent OF the Newman Erb-
Eugene Zimmerman syndicate. TO
M. J. Carpenter, former vice-presi-
dent and general manager Of the
Pere Marquette. were read into the
record by Examiner Edward Gut.
helm, of New York. In q hearing be-
fore Commissioner Silas Smith. The
telegram. in substance. directed Car.
penter to make the books show q
deficit Of less than 900, 900" In the
1904 report.
A reply from Carpenter to the Of.
feet that he had a $4,000 "nest-egg. %
which he had charged to various
funds In anticipation Of contingen-
cies and which could not be listed
as earnings but might prove useful
for the purpose mentioned was also
read into the record.
The purpose Of the present hear
ing. the second In q series to be
held In Detroit. was to show the
manner In which accounts had been
juggled In order to show favorable
balance prior to the consolidation
of the Pere Marquette and c., III. 4
d. properties, which Zimmerman
later disposed Of to J. Pierpont
Morgan at a profit of $4,000. 900.
which money. according to his testi.
mony before the Michigan legisla-
tive investigating committee two
years ago. he deposited in the Bank
Of England so Morgan couldn't get
his fingers on Il"
Chief Auditor Clarence 8. Sykes.
OF the Pere Marquette. who was on
the stand throughout the entire
morning, declared that he knew
nothing OF the circumstances sur
rounding these deals. as he was not
connected with the company prior
70 1908.
Examiner Gutheim's attempts to
prove that this result had been
achieved by keeping right-of-way inn
provements and car and locomotive
repair items. on OF the records,
which made necessary apparently
inordinate increases In these items
in later years was denied by Aud
itor Sykes, who declared that the
increases were due to increased la
Dor and equipment costs. as well as
to the strike In the company's shops
In 1919.
Examiner Gutheim read into the
record lengthy excerpts from the
minutes OF meetings or directors and
stockholders OF the road showing
the consolidation of the Pere Mar
quette and c.. II. a D.. shortly after
the report mentioned in Princes
telegram.
Seward l. Merriam. representing
the Pere Marquette. objected to the
introduction OF the records unless
he was given an opportunity to ex.
plain any references to the present
receivership which might occur In
them. He did this. he said. to pro-
tect the interests OF the receiver.
ship in the hearings. which will
start before Judge futile next Mon
day. on the petitions Of divisional
underlying bondholders. The bond
holders ask first for the immediate
sale Of the system: for the cessa-
ton OF payments Of interest on Ca
madam bonds (which means the
foreclosure on the Canadian lines
Of the company. and for the cessa-
ton Of payments Of equipment obli-
cations.
The ultimate fate OF the Pere
Marquette hinges upon these hear
ings," said Merriam.