The silver state. [volume] (Winnemucca, Nev.) 1909-1925, 1916-07-13
HEAVY EXPENSE OF
" W.PE. P RECf|yERSHIP

The railroad commissioners were
staggered" yesterday at the $40, 900
fee for legal services asked by John
5. Partridge in connection with the
Western Pacific receivership, says the
San Francisco Chronicle. 1t was Com
missioner Gordon who used the word
staggered" explaining that he was
only a "iayman." He asked John r.
Bowie, who was testifying, to tell up-
on what basis an attorneys fee is
made. Bowie entered into a disserta-
ton which did not seem greatly to
clear up Commissioner Gordon's mvs-
tiflcation.
Bowie was the principal witness be-
lore the commissioners, sitting en-
banc. The hearing was on the appli-
cation of the Western Pacific railroad
company to issue $4,000 900 in bonds.
S47,5OO,000 of common stock and s25.-
5OO,OOO of preferred stock. The appli-
cation also asked approval to expend
$2,752,5O0 for reorganization expenses.
This latter item the commissioners
required Bowie to dissect minutely
and explain every dollar of it. AS he
proceeded he struck the big disturb
ing note when he mentioned the Part
ridge fee. He made other disuuietine
music when itemizing other attorneys
fees.
When he had concluded President
Thelen said, I'VE realize the reorgani-
zation committee tried to save every
cent 1t could in this matter, but there
are certain expenses connected with
this reorganization which are ques-
rageous." He said he thought it
strange that the fee of Partridge
should be four times the entire ex-
pense of the legal staff of the receiv-
ership during the fifteen months.
Bowie said that the committee
thought the fee entirely out of proper
tion and would oppose it in the courts.
Bowie said Garret McEnerney had
not put in any claim for his services
as yet, but may do SO. OF the $2,752,-
500, Bowie said, S1,000,000 would be
paid to the non-consenting bondhold-
ers. Among other items enumerated
by Bowie were $4,000 as receivers
fees, $4,000 to the trustees, $4,000
as trustees counsel fees, $4,000 for
the masters fee, $4,000 unexpected
cific claim. He said the attorneys for
the reorganization committee would
get a fee of 100000 The rest was made
up in multitude.of expenses.
Bowie testified that the salary of
the secretary of the reorganization
committee would be $4,000. Thelen
remarked that his salary was rs per
cent higher than a railroad commits
sioners. Bowie explained that the sec
retary's duties were extraordinarily
onerous and that the place required a
man standing very high in the COM
munity, with perfect knowledge of
the bond situation.
Thelen once remarked that "If 1t
were not for these expenses the COM
pany would be able to invest about
$2,000,000 in necessary feeders" Re-
verting to the Partridge fee, Thelen
wanted to know if Bowie thought
$25, 900 would be proper compensa-
ton on this. He said he thought
$4,000 was enough, but might go as
high as $4,000. Commissioner Edger-
ton interjected. There was some nui-
sance value then in that S5O,OO0?"
Bowie said that the company has
discovered hitherto unknown assets IN
the approximate amount of $1,O0O,0O
This was made up of bills and ac-
counts receivable.
Bowie stated that the new holding
company, "The Western Pacific Rail-
road Corporation" was Incorporated
on Friday last in Delaware and would
have local office here. He also ex-
planned that the properties would be
taken over, subject to the liabilities
of the receivers, of which there was
1918, 900 for purchase of box cars and
100000 for bridge construction, be-
sides interline bills, tort claims or
about $4,000 and freight claims OF
$50, 900.
Henry E. Cooper, vice-president OF
the Equitable Trust company OF New
York, the trustee under the bonds, was
present and was called to the stand
by Bowie to testify as to the compar-
ative economical management OF the
reorganization. Cooper said that he
considered, when taking into account
the large amount of securities de-
faulted, that this reorganization was
more economically and better hand
led than the Wabash or the Western
Maryland.
The commission took the applica-
ton under submission.