The Detroit times., 1910-03-16
JOHN NJ VICAR SAYS
80" ORDINANCE IS
WORST EVER
Believes 1t Emanated From D. U. R.,
Birthplace Of Codd- Hutchins Meas
ure-City Ownership Petition Goes
To Council Next Week.
Fifty" Has Difficulty in Mastering
Quorum To Indorse Webster Settle
ment Plan-More Objections.

NOT until next week will the citizens
committee on municipal ownership
present It's initiative petition to the
common council requiring a vote on
Inc Moore plan fol ownership and
operation Of the street railway system
by the city. While sufficient names
have been signed to the copies OF the
petition that have been In circulation
throughout the city there remain some
formalities with regard To the afiidavits
accompanying the petitions.
we have l4709 Names" stated
Chairman John McVicar. Tuesday
morning "As the law requires only
l4,lI4 names, we are well on the safe
eide. These copies OF the petition
were brought in Sunday and we found
we had enough, but | sent them GU.
again to be properly sworn TO. There
VIII be some other names coming in
curing the week In addition TO the
number | mention
The ordinance drawn up by tho
committee of fifty is tho worst thing
ever II cmanatcd from the ID. T. r..
IN my opinion. just az the Codd Hutch.
ins ordinance did. | think that the
great majority OF the committee az
NIFTY members are honest. but there
are some members of that committee
who are In very close touch with the
II. L. K. That ordinance will never
90 for settlement OF the question"
business men familiar with the af
fairs OF the Detroi; United Railway
state that one insuperable objection
70 the acceptance of the committee OF
fifty plan Is the difficulty of charging
Of the water In the securities of the
5ystem u the suburban roads. as con.
.empated in that plan
IT Will be a bookkeeping matter
solely. was the statement OF one who
has been close to the deliberations OF
lie Atty recently. The d. IT, r.
Will accept the valuation of it's city
lines as agreed upon and charge of:
the remainder az its Indebtedness to
rs suburban lines. The whole thing
VII involve only transfer from one
side OF the ledger to the other"
But experts In financial matters Of
this kind say that the operation is not
30 simple. The -. u. RS great sub
urban railway system has been built
M by the issue of bonds. secured by
The property and earnings OF both the
aity and suburban roads In almoS
rVery case. the interurban lines have
been secured at a high price and
bonds Issued TO take care OF the in.
nated price In time, the roads woulG
doubtless grow 10 the value OF the in.
gcstment and water. but that time has
tot come yet
The big profits made by the men
who sold 10 the d. e. r. remain as a
charge upon the system, without any
corresponding investment to earn IN.
.orest 10 meet this burden. Some OF
he roads were secured for their
strategic" value and this strategic
sa.ue is debt on the system
YpsiAnn Road a Sample.
The Ypsilanti-Anr Arbor road is a
lair sample OF this method OF finance
I, was built by capitalists outside the
q. L. r. circle and was bonded for
$4,000. 900 Up to the time of its sale.
lie "YpsiAnn" paid only little mote
than interest on It's bonds. IL did no.
pay we'll enough To allow of laying by
depreciation fund.
lie ~. u II. !'dlt 9oVOsOVV WI tilS
stock OF the Ypsilanti-Ann Arbor. III
addition TO that, il was necessary to
,xpend 100000 to bring the road Up
20 GOOD condition. This brought the
Investment up 10 s3.S00.0 900 on road
which had barely paid interest on
$4,000, 900 A s4.000.000 bond issue
was made to cover these financial TN
Ccrtakings. In time the business Of
this line may grow sufficiently To pay
interest and also depreciation on that
sum. but that time is not here
or the whole system OF ID. u. H..
lines. the Wyandotte Is the only one
that is a real gold mine. it is said. The
Pontiac line is good producer but
there are some heavy profits figured
IN the bonded Indebtedness OF that
line. The Rapid Railway TO Mt. Clens'
ems is also paying proposition-but
the d. L. X. paiG high price for IT.
All OF the other lines are said to he
unable To pay interest on their own
dabts. let alone taking the burden OF
any moisture from the city systems
financial squeezing. Should the ID. L..
y finally consent 20 make the book.
keeping change which the committee
a. Nfty wants II to make, what Is the
outcome going TO be? How long Will
n take for the suburban end OF the
system 10 get the city end into a court.
with a reC eivershiL and it's attendant
evils TO be met?
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