The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1911-11-29

bOuuou ucbl vi Slo,OOU,OOO. IL ne equity
amounts 10 practically nothing. or
worse than nothing. No sane man
would accept mortgage on a piece
or property FOR three times the value
or the property. and that is exactly
the case here, where there il property
worth about seven or eight millions
or dollars. while there il a blanket
! mortgage OF three times that amount,
or about s23.OOO,0OO.
The arbitration clause is farce,
for several reasons. First, look AT the
ID. u. RS arbitration with its en-
ployes. How much did the arbtra.
ton accomplish? The ID. IT, X. did
nothing until the strike was called
But the men had the upper hand,
which the city would not have. The
arbitration clause, for the purchase
or the system, provides that a COM
mission or five men fix the value OF
the property. Two men will be APP
pointed by the ID. L. r.. two by the
council and the mayor, for the city.
and the fifth will be chosen by those
four. With matter Of at least So
100000 at stake in the question OF
valuation, | hate TO think about what
appointed. II is reasonable to sup.
pose that the ID. L. II. will have abso-
lutte control of that board IL will
get one OF the two men appointed by
the city. even ii IL has TO buy him
outright II will have its own two
men, and the road will use its well.
known methods to get control OF the
fifth man. Therefore, IL will sell to
the city at its own price.
Another point. Mr. Hally holds
that the ID. t., r. as the purchaser Of
the Detroit street railway property
end franchise, has the first option on
any new extension or franchise His
argument for this franchise is that
Il will ger rid OF that right. now
vested in the D. u. r. But the ordi-
nance distinctly states that this ordi-
nance shall be supplemental to the
old Detroit Railway franchise. and
that the terms OF that franchise
shall be in full force and effect.
Which means. that IL this ordinance
passes the ID. u. r. will have first
option on every extension and every
franchise.
Tie City Hand and Foot.
Even If the Gilman plan for NUM-
clpal ownership should be carried
first and this ordinance should car
ry later, this ordinance would tie the
city hand and foot, and make munich
pal ownership impossible.
And say that the arbitration
clause is absolutely viclous in the
light of the well-known tactics OF the
d. U. r. in politics, and its recog-
nized facilities for making legal
fights"
AS indicated by The Times several
weeks ago. the Thompson ordinance
will not have altogether smooth sail
ing in its course through the common
council All the objections raised
a gainst the plan when II was first
made known, are being revived, now
that the ordinance itself has been
made public, and the fact that the ID.
l.. r. Is required 10 put Sl.00e,O0O
bond TO insure a clear title. and for
felt $4,000 for every day the city is
from taking possession af-
ter the companys failure to turn over
the property as agreed, seem TO have
made very little impression on these
members.
Aid. Gilman, father of the Gin
nan municipal ownership amendment,
which Is soon 10 be taken from the
table by the council. sees serious
objection 10 the ordinance in the Sec
ton providing that all expenditures
made in the past blythe company for
foundation and paving work, be con-
sidered a capital investment and add
ed TO the purchase price. The alder
man estimates that this item alone
would represent between S2.000,OOO
and $3000,000, and he bases his judg-
ment on figures taken from the Bar
croft appraisal.
And If my memory serves me cor
rectly." said Aid. Gilman, MIR. Hally
gave Bancroft an opinion that paving
work performed in the past did not
constitute an. asset in the event OF
sale"
Another Bad Feature.
The fact that the company is also
given power TO elect which method OF
purchase il prefers, is also regarded
by Aid. Gilman as a bad feature, as
the natural tendency would be to
shove all the burdens possible on the
city II would be possible under the
ordinance Aid. Gilman declares, TO
make the price of the property so pro-
hibtve as to kill all chances for
ownership under the plan
provided in his ordinance.
Aid. Charles McCarty, OF the Thir-
teenth ward, who is for municipal
ownership first last and all the time.
said Tuesday. that he would have
of amendments to suggest
when the franchise committee meets
TO consider 1t.
Mayor Thompson will attend the
hearings before the franchise commit
tee and will answer any questions
that may be asked him regarding the
ordinance.
81 am not going TO advocate the
ordinance. understand he said, Tues
Jay. 1T is the peoples measure and
they must decide for themselves
whether they want il or not.
Neither am going TO apologize
for the ordinance II will speak for
itself. But 7 am not going TO allow
any lies or any misstatements TO go
:.
The MAYOR was informed. Tuesday.
that the Republican strategy board"
as he characterizes the Republican
& flcial holders who look after the
rertv's affairs locally. was already at
work trying 70 devise means to defeat