Pere Marquette Railroad Company and Cincinnati, Hamilton & Dayton Railway Company: Report of the Interstate Commerce Commission Upon the Character of Service, Physical Condition of Equipment and Property, Financial History, Transactions, and Practices of the Pere Marquette Railroad Company and the Cincinnati, Hamilton & Dayton Railway Company (Google eBook)

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Congress, House of Representatives, 1917 - Railroads - 263 pages
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Page 174 - Harriman's emphatic disapproval of the purchase upon his return in November, with the result that president Underwood obtained another interview with Morgan, as to which he testified as follows : Then I went down and had an audience with Mr. Morgan, and I told him that practically the C., H. & D. had a floating debt that was not visible and in the statement he showed me. He said : " Well, we will look at the statement," and there was some attempt made to find ttmt statement, but it was unsuccessful...
Page 224 - Nothing disclosed in the record before us is to be more regretted than the readiness of great banking institutions in our financial centers to loan enormous sums of money upon exceedingly precarious security in aid of such schemes as have been devised in the wrecking of these railroads. Not only this, but the high officers of such institutions, while acting ostensibly as directors of the railroads, have in fact been little more than tools and dummies for the promoters. The trustees of other people's...
Page 222 - ... situation. Apparently Ives's C., H. & D. transactions were a part of schemes involving other and larger properties. He and his associates gained control of the C., H. & D. in the spring of 1886. At a stockholders' meeting on June 15, 1886, they exercised their control by the election of their nominees as directors, officers, and members of the executive committee. Ives was elected a director, vice president, and member of the executive committee; George H. Stayner, one of his partners in the...
Page 5 - ... of the direct losses, aggregating almost $5,000,000, of the former administrations. Morgan control has continued since, except for the second receivership, which began on April 5, 1912. In the intervening years the Pere Marquette was in constant difficulty, revenues failed to provide for expenses and charges, and bond interest was paid only at the cost of adequate maintenance of the property. Road and equipment deteriorated markedly, financing became more and more difficult, and needed funds...
Page 61 - Other lusses carried through the profit and loss account in addition to the results of operation must be considered. In the aggregate the showing to June 30, 1914. was as follows : Debits : Net loss from income $12, 962, 905. 48 Debt discount extinguished 10, 500, 486. 02 Net loss on retired road and equipment 3, 054, 800. 59 Miscellaneous debits 724, 047. 40 Total debits L 27, 242, 239. 49 Credits : Miscellaneous credits 5, 187, 199. 76 Profit and loss balance (deficit) 22, 055, 039. 73 The major...
Page 149 - fiscal agents," without themselves putting up one penny, borrowed $1,500,000 on the notes of the Pere Marquette, purchased worthless stocks at 41, sold the same immediately to the C., H. & D. at 42, which on the same day sold the same to the Pere Marquette at 47. The amount paid by the latter, $1,645,000, was entered as an " investment," was subsequently lost by reason of foreclosure of the terminal company bonds, and in 1908 was charged as a worthless asset to the Pere Marquette's
Page 34 - ... its make-up until November 5, 1909, when certain representatives of the Baltimore & Ohio Railroad Company were elected, following the latter road's entrance into C., H. & D. affairs. But even then the Morgan interest was the dominant one in the Pere Marquette board. Early in 1911, when the C., H. & D.'s 110,000 shares were finally sold to JP Morgan & Company, the Baltimore & Ohio directors resigned. A little more than a year later, on April 5, 1912, the road again went into the hands of receivers....
Page 32 - ... in each of said two corporations into such new corporation all as required by said laws and such other details as the undersigned companies deemed necessary to perfect such consolidation. It appears by the consolidation agreement, the aggregate amount of capital stock issued and outstanding of the two consolidating companies is $28,500,000, and the authorized capital stock of the new company is to be the same amount, $28,500,000, divided into first preferred shares and common shares,...
Page 174 - ... Interstate Commerce Commission: "... In his magnificent, unparalleled, and absolutely voluntary offer himself to assume the entire purchase, and to relieve the Erie Company from all contracts and cost in connection therewith." The generosity cost him twelve million dollars. Said President Underwood: " Several days before the rescindation process was had, I talked with Mr. Harriman in his office in the Equitable Building. Now, I can not give you any idea where he had been in the interim, but I...
Page 32 - Michigan company shall have the right to subscribe for such debentures to an amount equal to 20 per cent of the par value of the common shares owned by him at such date when this agreement shall be filed as aforesaid.

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