The Detroit times., 1911-05-08
D. j. R. WINS FIRST
ROUND IN SUIT
OVER RENT
Circuit Court Decides That Company
May Put in Testimony Supporting
Claim That City's Demand Is
Unreasonable.
Hally Wanted To Admit Roads Con
tentions and Confne Case To
Legal Points Involved.

The Detroit United Railway, Mon
day morning, won the preliminary
skirmish in the citys suit TO enforce
the payment OF the $500 per day rem
tai imposed on the ID. u. r., by the
city, for running cars on the portions
OF the Fort-st. line, where franchises
have expired, in addition to the $500
already paid on other lines. where
the company's rights have also ex-
pired.
The question before the circuit
court, Monday, was whether TO admit
testimony In support OF the COM
pany's claim that the rental demand
ed is exorbitant and. in fact, con-
fiscatory. For the purposes OF the
case, Corporation Counsel Hally had
admitted that the rental would ex-
ceed the net earnings of the line. as
set forth in the company's answer
The same issues are involved in this
case as in the injunction case against
the enforcement OF the Hally ordi-
nance, which has been pending In
the United States courts for two
TO confine the case in the circuit
court simply to question OF the
c!ty's right TO collect the 5000 per day
rent, leaving the other issues TO be
determined by the United States
court.
Under the ruling of Judges Man
dell, Murphy and Hosmer, who sat
together, Monday morning, the en-.
tire controversy between the city
and company will be throshed out In
the circuit court and undoubtedly the
case will find its way ultimately to
the United States supreme court The
circuit judges held that both sides
should be permitted TO offer such
proof as desired and as speedily as
possible. Although Attorney F. A.
Baker had announced his Willingness
I TO 60 ahead at once, II need be, he
SHE'D when the court suggested, We'd
nasday morning, as the time for
starting to take testimony 49,
Attorneys Charles ID. Joslyn and
]. C. Donnelly, who appeared with
Baker for the ID. u. R., both pleaded
other engagements, but the court
fnally fixed Thursday morning. Cor
poration Counsel Hally said he would
be ready. According to Mr.. Baker.
the company can put in its prima
facie case in two days.
Judge Mandell alone will hear the
testimony. He will call in Judges
Murphy and Hosmer again when II
comes TO the arguments.
Hally's contention was, in sub
stance, that testimony as TO the ID.
u RS earnings on the Fort-st line
was wholly immaterial. He argued
that the city had the right to fix any
rental IL saw At for the use OF streets
on which the franchises had expired,
and that unless the company saw
1T to accept those terms, its only al
tentative was TO get off the streets.
These were purely legal questions, he
pointed out, and to take testimony
would be waste of time in view OF
his admissions.
Fred A. Baker. talking on the other
side, said
"I have been an inmate OF law
office for 46 years and this Is the first
time | have ever heard IL contended
that a court In chancery could not
take testimony. Why. as a mere mat
ter of chancery practice II should be
done. The supreme court would not
consider this case II IL were submit
ted without evidence.
"Hally comes in here and thinks he
can admit US out OF court That's
what II amounts TO. He can admit
our facts and we are choked of from
putting in any evidence. Here we
saw 5000 day is an extortionate rem.
tai. Hally admits 1t. We'd be glad
10 accept his admission. but we can
not do SO legally because he has no
authority to make 1t.
"Now, your honors, this is not
merely a suit over 5000 day. This
tContinued on PnEe Niae.)