Belding banner. (Belding, Mich.) 1889-1918, 1916-06-21
is REORGANIZATION PLAN
DEFECTIVE?

The Michigan Investor and the
Michigan Manufacturer and financial
Record, two influential weekly publ
cations, seem to take very divergent
views in regard to the plan for reor-
ganizing the Pere Marquette railroad
company.
In it issue of June 10 the Michigan
Investor commends very highly the
work of Receivers Waters and King
for their clear vision and expert plan
ming to bring the system out of the
ruts. 1t is pointed out that by the
plan of reorganization the integrity
of the system will be preserved, thus
enabling Michigan to enjoy prompt
and convenient service; that the losses
of the company will be borne by the
present security holders in an equita-
BILE proportion; that conservative
limit to the amount OF security bear
ing astated interest will be fixed and
that by the plan enough new and
ready cash will be secured to equip
and improve the system to meet the
needs of the territory served. All this
is stamped as comendable by the In
weston.
On the other hand the Michigan
Manufacturer of June IL carries, a
page and half to show up the de-
fective Reorganization of the Pere
Marquette" Prefacing the general
discussion of the proposed reorganiza-
ton plans the writer goes into detail
classifying the various proposed stock
issues. He states that the plan was
worked out in an effort to please ev-
erybody and to secure ready reor-
ganization, but is Of the opinion that
the State Railway commission, before
whom the plan will be heard this
week, will be acting very unwisely If
it accepts the plan as outlined. He
believes that the new plan will make
small part of the common stock the
head of the company and that this
same stock will become, again, the
plaything of railroad gamblers and
exploiters. The writer finally says
that he believes "many points should
be stretched in favor Of any public
service corporation in hard luck, yet
the set-up which is proposed for the
Pere Marquette simply means renew
ed BANKRUPTCY and the fact will, it is
hoped, be recognized by the Michigan
Railway commission, now rather than
later. 1t is the duty of every business
mems association in every community
served by the Pere Marquette railroad
to make remonstrance before the
commission against this new financial
costume with which it is proposed to
dress up the cripple"
The substantial reorganization Of
the road is ,unquestionably, beyond
the comprehension of the average in
dividual, but nevertheless, these two
directly opposite views, coming from
financial authorities on both sides, are
of sufficient import to command the
attention of many local citizens in
terested in the roads welfare. Wheth-
err the plan is feasible or not will prob
ably be thoroughly probed by the
commission, and certainly the state
would not want to place its official OK
on a high financing proposition to be
thrown back upon it and contested
later.
Belding, like every other city served
by the Pere Marquette, desires to have
the receivership settled in just and
equitable manner that will insure per-
manent and satisfactory service 70
the state. The uncertainties connect
ed with the system, we think, already
had their unfavorable influences upon
| the several communities. Belding and
| this community is for the Pere Mar
quette and stands willing ut all times
TO do anything, consistent with reason
! TO bring IL "out cs the woods and In
sure proper transportation facilities
and for it healthy living.