The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1909-02-18
HUTCH|NS SAYS He
EXPECTS SQUARE
DEAL FROM CITY
CURE THAT MONEY INVESTED IN
o. U. r. SECURITIES Is SAFE
REPEATS OFFER TO OPEN
BOOKS TO INVESTIGATORS

That every aid will be given the
Committee of so in investigating the
books and property values of the ID. u.
r. was the assurance repeatedly Civ
en- by President Hutchins and General
Manager F. W. Brooks In the confer
ence, Wednesday afternoon, In the
Committee of so Offices.
NJ j. Murphy presided and others OF
the subcommittee present are Richard
p. Joy. DR.. J. II. Carstens, Frank w.
Eddy. K. A. Burch. Theo II. Eaton. A.
A. Schantz and w. w. Hannah. They
questioned the d. T. r. officials rather
closely and some interesting points
were brought out.
II was admitted that the ID. u. X.
has no sinking fund to take care OF its
bonds and has had depreciation fund
only in the past few years, portion
of the surplus being charged off To
that fund. This situation was explain
ed by President Hutchins, who said
that the bonds had been issued as
continuing investment and that 1t
would have been possible to form "A
sinking fund only by taking advantage
OF the terms Of the franchise to charge
double and triple fares and to cut OF
transfers.
The work has been carried on in
an ascending scale" he said. There
has been no opportunity TO retire
capital. The demand has been for
more capital"
Hutchins explained that the com
pany issues thousands OF transfers
day more than it's franchises compel
II to, and that II could have raised
tt,f.l . ha
lines and charging separate fares on
each section had ii desired but this, II
was thought. would be a burden on the
people.
The ID. U. X. has paid dividends
only about five out OF 20 years, he said,
the remainder OF the earnings going
into improvements. Asked as to
whether the new construction on JEFF
ferson-ave. had been charged TO oper
ating expenses or new capital. Hutch
ins explained that so much as II would
have cost TO repair the old lines was
charged TO operating expenses and the
remainder capitalized as new expendi-
ture
No separate account is kept OF the
expenses and receipts OF the three
cent and five-cent lines, 1t was stated,
but the committees experts may be
able TO figure out the relative costs
and returns by averages. Both Brooks
and Hutchins declare that the cost OF
construction and service is increasing
E. A. Burch wanted to know how
much the u. U. r. considered 1t was
paying for franchise value when ii
brought the three-cent lines. The an
sweT was that 1t was rather strategic
than a franchise value that was pur.
chased. President Hutchins declared
that he expects square deal from the
city.
For the last 10 years | have been
telling the people who have their
money invested in our securities that
1t is safe and think so STILL" he said.
In response to query as TO whether
a uniform rate of fare would do away
with crowding during the hours of low
fares, the II. u. X. officials asserted
that such change might help to 4
certain extent, but that business condi-
lions govern the movement OF passen-
gers. The meeting ended with an
agreement that the committee experts
shall be given every means OF securing
the fullest information.
DR.. j. II. Carstens has called a
meeting OF the extensions committee
for Friday evening and some OF the
d. u. X. experts will then be present
Ia discuss the needs OF better service
in rearranging the lines.
President Scannell. OF the Detroit
Federation OF Labor. announced in the
meeting OF that body Wednesday even
ing that public meeting OF citizens In
tore Stad In municiDal ownership Will
be held soon at which a municipal
ownership committee will be ap-
pointed.
The Federation appropriated $25 TO
carry on further the investigation OF
the state labor commissioners office.
A resolution was adopted favoring an
increase ia the pay of library en-
ployes.
There are constantly about 100000
neraons seriously iii in the United