The Detroit times., 1909-02-19
HUTCH|Ns Says He
EXPECTS SQUARE
DEAL FROM CITY
SURE 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 80 in investigating the
books and property values OF the ID. =.
X. WAS the assurance repeatedly CIV
en- by President Hutchins and General
I Manager f. W. Brooks In the CONFER
ence. Wednesday afternoon, III the
Committee OF so Offices.
/ NJ Murphy presided and others Oh
| the subcommittee present are hicharu
| p Joy. DR. ]. H. Carstens. Frank W.
Eddy +. A. Burch. Thee. h. Eaton, A.
A. Schantz and w. w. Hannah. Ihey
questioned the d. L K officials rather
closely and some interesting points
were brought out
| Il was admitted that the ID. l. X
has no sinking fund 10 take care OF It's
bonds and has had depreciation fund
only In the past few years. portion
H the surplus being charged on 10
that fund This situation was explain
ed by President Huichns. who said
that the bonds had been issued as
continuing investment and that IL
would have been possible 10 form
sinking fund only BY taking advantage
OF the terms OF the franchise 10 charge
double and triple fares and 10 cut on
transfers.
The work has been carried Oh IN
an ascending scale. ne said. There
has been no opportunity 10 retire
capital The demand has been for
more capital
Hutchins explained that the com
pany issues thousands OF transfers
day more than its franchises compel
that entl1 haVA ratSA1
much more money by dividing the
lines and charging separate fares on
each section had ii desired but this. II
was thought. would be burden on the
people.
The ID. L. r. has paid dividends
only about five out OF 20 years, he said,
the remainder OF the earnings going
into Improvements. Asked as &c
whether the new construction on JEFF
ferson-ave. had been charged 10 oper'
ating expenses or new capital, Hutch
ins explained that so much as IL would
have cost 10 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 fve-cent lines, II was stated.
but the committees experts may be
able 10 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 Z. L. K. considered ii was
paying for franchise value when IL
brought the three-cent lines. The an
swer was that II was rather strategic
thar a franchise value that was pur.
chased. President Hutchins declared
that he expects square deal from the
city.
For the last IS years | have been
telling the people who have thei,
money invested in our securities that
Ii Is safe and think SO still. he said.
In response TO a query as 10 whether
q uniform rate OF fare would do away
with erowding during the hours OF low
fares. the H. L. r officials asserted
that such a change might help 10 =
certain extent. but that business condi-
tons govern the movement OF passen-
sers. The meeting ended with an
agreement that the committee experts
shall be given every means OF securing
the fullest information.
DR.. j. H. Carstens has called a
me citing Of the extensions committee
for Friday evening and some OF the
d. L. r. experts will then be present
To 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 a public meeting OF citizens in
terested in municipal ownership will
be held soon AT which municipal
ownership committee will be APP
! pointed.
The Federation appropriated S25 TO
carry on further the investigation OF
the state labor commissioner office.
resolution was adopted favoring an
increase ia the pay OF library en-
ployes.