The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1910-01-06
Oct ROIT UNITED
FILES ANSWER IN
HAlLY SUIT
Technically Defendant, Railway
Joins With Bondholders in Asking
Court To Declare Three.Cent
Ordinance Ultra Wires.
Declares Measure Unreasonable and
Would Result in Traction System
Being Operated at Loss.

BY a curious Legal semi-nctIon the
Detroit United railway is defendant
with the city OF Detroit In the Hally
ordinance suit pending in the Uni.ed
states circuit court AS such. rs
answer 10 the bill OF complaint OF The
Guaranty Trust 60 OF New York. act.
Ing for the ID. IT, r. bondholders. was
filed I'm the office OF Clerk NJ. J. Caya.
naugh. Wednesday morning. The an.
swer or +. j. NJ. Hnllv, in behalf OF
the city government was filed some
time ago.
Very naturally. the Detroit United
railway agrees with TIC position taken
by its bondholders as to the alleged
rnfairness. illegality and confiscatnry
eject OF this three-cent fare legisla.
ton; 1t admits the allegations con.
tanned In the original hill. and even
goes farther. The cross.bill filed with
the ID. u. II. answer asks that the
Hally ordinance be caaceled, annuled.
declared void and also ultra wires ana
otherwise disposed Of II joins in The
prayer for n permanent injunction to
prevent the city from attempting 10
put into effect the provisions of this
ordinance by which FIVE tickets were
To be sold for IL cents on all routes
for which PORTION nf the franchise
had expireu.
The cross-bill is q booklet OF about
1926 pages. II reoites all the allega.
tons previously made, charges that
the rate OF fare in the ordinance is
unre asonable so that the street rail.
ways could not be operated except at
loss, declares that the penalties pro.
vided are onerods allG unreasonable.
that the provisions for extension OF
lines into territory 10 be annexed ~
the future are unrea sonable and cal.
oulated to Geny the ID. u. X. the power
10 make it's investments In accord with
its Judgment as 20 their wisdom
The difference between the two
bills, that OF the Guaranty Trnst Go.
and the u. u. r., is that the former
alleges that the hondholders will nc;
get returns on their investment. wciie
the other asserts tina. the stockholders
will be ruined II tho ordinance goes
into effect A
These are excerpts from the prayer
TO the court:
That the said ordinance called
the Ilally ordinance. the enforce
ment Of which was restrained by
this court pending the proceed.
ings, may he adjudged 10 eonGti
tute an impairment Of the obiisa.
ton of the contracts and az, ee.
rents existing between your era.
tor uhe ID. IT, r. and the City
OF Detroit. fixing the rates of fare
To be charged for the carriage OF
DdescnSers upon its several lines
Of street railways. and in contra.
vention Of section 10. article one.
of constitution of the United
States. and that this court will &C.
clare that this ordinance is ultra
wires: and that the only power
which the City Of Detroit posses
ses Is of contractual and not or
q governmental or legislative CHAR
acter In fixing rates OF fare.
That the said EIally ordinance
constitutes a cloud upon the right,
title and interest of your orator in
IT'S lines OF railway. which ii Is
entitled TO have removed and to
declare and adjudge that The same
be cancelled and removed.
The said ordinance Is further