The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1911-11-28
PURCHASE CLAUSE
IN ORDINANCE is
VALID, HALLySAYS
City Ownership Authority Is
Granted BY Constitution; Only
Machinery Lacking Here.
DECLARES WARRANTY OF
TITLE Is SUFFICIENT
Corporation Counsel Explains
Measure Designed To Carry
Out Thompson Plan.

nhuCe pTopdTeu 10 carry out the
Thompson street railway settlement
plan:
To the Common Council:
Gentlemen-Herewith md the ordi-
nance covering the settlement upon
on Oct. "a. 1911. on which occasion by
resolution you asked that this instru-
ment be prepared. IL has been submit
ted TO the representatives OF the De-
roit United Railway and has been
agreed to by them. on account OF it's
length and legal phraseology 1 have
epitcmized Its sections as follows:
SECTIONS 1 and make the provisions
OF this ordinance apply to every line
in the city
Sec makes every franchise right
within the city limits expire at mid
night on Dec. 4. 1894.
sec 4 hxes the rate of fare. to-wit:
EigN tickets for % cents from a m
10 D. m; nye-cent fare or a ticket
at the rate OF six for 70 cents. and
transfers to any other route
Section specifies the limits In
which the fare will be charged; thai
IL: within the city limits and on Wood
To Lozier plant; Chene-st to railroad
crossing; Michigan-ave. TO Addison
switch. These places are all outside
mes ,"re and transfer pro-
Visions ~ ana from interurban cars.
the fare being fixed at i've cents
sec; z provides that IL the city does
pavements between rails, the company
may do IL and charge II UP to the city
~ the department OF public works has
given permission to do the work
Sec. Is repetition OF the old pro-
visions OF the Detroit Railway ordi-
nance covering service. with an added
clause giving the common council
power to make the service suit the
Council Controls Rates.
sec. gives the company the right
to re-arrange existing routes. but per-
mits the common council to compel
restoration OF old routes IL the change
should prove unsatisfactory.
Sec. 10 gives the city the right to
buy the street railway property. The
price and manner OF payment. II not
agreed upon. is TO be fixed by a board
OF appraisal. two members OF which
are TO be named by the city, two by
the company and the nth by the four.
or. by the circuit Judges. IL they are
unable to agree
Sec. IL covers a number Of PROPOSE
items pertaining TO appraisal. way OF
payment manner OF tender OF title;
possession by the city and imposition
OF penalties in event Of company fall
Ing In It's contract TO give possessi IN
or title 10 the city
The first paragraph binds the boa I'd
of appraisal to fix a date for the de-
termination OF the value of the street
be practically identical with the date
OF lite report. IL Is 10 allow no value
for the rights granted by this ordi-
nance. IL Is to allow for the existing
foundations n value which Is to be de-
termined In the year 1912. in accord
anoe with sections IA. Is and Is.
IL Is TO allow for the future work
done by the company. the cost price
in accordance with sections Is and 20.
IL - to value all valid franchises here
tofore granted and which have not
lapsed at the time of purchase, from
this date. taken for the determination
OF values TO the date of expiration OF
the franchise IL the date Of expiration
is before Dec. 4, 1924. II the date of
expiration is after Dec. 4, 1924: no
value Is to be placed upon the fran
Chise beyond that date.
The companys land Is TO be valued
It's fair market value. All other
property, taking into consideration its
cost and natural depreciation. is to be
valued at its fair value for street rail-
way purposes
The next paragraph names the four
possible ways OF the city paying Tor
the railway property:
o. Cash. CD part cash and assum-
ing the payment OF mortgage Tor the
balance; l3) assuming the payment OF
a mortgage equal to the purchase
price: CD assuming Of a blanket mort
gage so much as Will equal the pur-
chase price, the company giving Sc
Cufity to the satisfaction Of the boa rd
that portion of this blanket mortgage
which the city does not assume,
Up 20 the People.
When the purchase price is fixed by
the board OF appraisal. the company
has 30 days in which to say In which
of the above ways II Will take payment
for it's property. IL the company does
not elect. the board fixes upon meth
Cd which in either event with the
price Of the property must be submit
ted To the people. Until approved by
the people II is not binding.
II the people approve. the city con-
troller, when the company makes ten
der OF its title, reconvenes the board
of appraisal II may then take from
the purchase price any lcssencd fran
Chise value. deduct any amount pre-
viously fixed as the value OF any prop
erty missing from the inventory, and
any depreciation due to the company's
failure TO maintain the property, or
add the worth Of any betterment in
stalled by the company after the pur-
chase price was fixed.
The next paragraph makes tho
judges OF the circuit court an indie
pendent board of appraisal II the COM
pRny fails or refuses to proceed with
the other appraisal. This is "A matter
OF caution TO meet any legal objection
that might be raised 10 the other meth
cd
There are several ways In which the
company may make tender OF it's title,
which Il must do within one year after
the vote of approval The tender OF
title however. must be I'm accordance
with the award which the people have
approved.
III the way OF payment is TO he In
cash. the transaction Will be iConsum-
mated as any purchase OF mortgaged
real estate, the rendering OF abstract
and fixing on a time and place when
tho mortgage will be discharged and
title pass.
n payment is to be made by the city
assuming a mortgage equal to or less
thuu the purchase price. the COmDaDv
is to tender title free from any mort
gagC except that assumed by the city
Il payment is TO be made by the city
assuming such part of a blanket mort
gage as equals purchase price. the
company " TO tender title free and
clear OF any other mortgage. together
with the security demanded by the
beard OF appraisal for the citys pro.
lection against that part Of blanket
mortgage not assumed by IL.
After tender OF title the city has six
months In which to make payment
The balance OF the paragraph has TO
do with every possible contingency
thatsmaE. arise and which at this time
could be foreseeu
~ III the company fails 10 make tender
\ OF title within the year given II. the
city Immediately takes possession or
the property. operates the road and re-
tains the revenue derived from the OPP
Grafton The company may then. when
"a has perfected it's title. make tender
and within six months the city Is to
= huv 70
The city a.. however. free 10 abandon
or restore The property 10 tho COM
papN. hut must restore 10 frre and clear