The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1912-11-15

EKS no SET BASIS FOR
vALUINc OTHER LINES


mat Mayor Thompson was informed
ne danger OF passing an ordinance
allowing the d. IL. r.. TO build extern
'0hs without any check on the cost
-. ne cifys part, and that the ordt
.1tes finally. drawn are al! In the
/.npnny's favor and against the city,
..1ct the mayor took no step In the
/.tt's defense. was stated by Fred
&|'ck II. Bancroft, Friday. =
-Ihe ordinances allowed the ID. U.
70 build Its extensions In any way
Jaw At said Mr. Bancroft The
/&.ulf ii that the company has been
.1Gleesly extravagant. IL has en-
|'oyed more men than were neces-
.rr. It has paid high prices for ma
.<Iai. and the city knows absolutely
& ..lhine OF the kind of work that was
lone. or its cost.
NJ wrote 10 Mayor Thompson early
|I the year. pointing out TO him the
Hanger Of the proposed course, but the
mayor did nothing. The ordinances
we're passed. and the mayor gave
HEM his approval.
This course has two bad results.
FIRST, the city agrees to take over the
M1w lines and equipment 1t cost. less
|<oreciation. That clause allowed the
company To 20 ahead without check,
md 10 waste money In building Its
new lines. FOR the city. was bound In
he end to pay for them at cost, less
XtDreciati0n. Depreciation Is word
that means very little. Suppose the
|rmnany Maid 20 per cent more for
building its extensions than they
Mould have cost. Suppose there is a
/6Dreciatioif Of 20 per cent. The COM
ANY hasn't lost anything.
second, The company Is in posi-
ton 20 point 10 the exorbitant cost or
/I6se extensions, and say: Here are
All the resf OF our lines in the city,
ne cost OF which. ought to be figured
Sc the same basis, Thus the com
Ihny will have figures to show why
|Ie valuation Of its entire plant should
Ne placed At much more than Its ae-
|nnl worth.
'But the real object is to keep the
lily n squabble with the railroad,
rs that nothing can be settled. For
.6 lonk as there Ii something left TO
|1ht about, Just so long will the ID.
n. p continue TO run its cars and col
|ecf ils l3les' and make a good thirg
'j&| IN J mayor and counck
&Ionld hafe taken an example from
.|h6l In one city which hopes
"a eoIn| d II TO own its street car sys-
|tm, t9oheb 1T has no power to own
~ now sn0 construction work can be
lone until IL is scheduled with the
/|Iy. and the amounts, spent on the
work are audited by a city ofilcial, 50
that the city knows what the actual
cost has been, and can prevent ex-
f1<aeance.
Some such plan should have been
adopted here The ordinance which
rave the railroad permission TO build
.<Icnsions should have scheduled all
Die construction work and should
1--we estimated the cost of the i'm.
|'1fe known where II stood. II would
have known whether it wanted add
|'onnl line At that price.
The 0fdinances as passed are
|r1wn with an Indebtedness or which
me company VIII take every advan.
'1Ec. They say that the city must
|oy for tho equipment OF extensions
bat IL very broad term. The CON-
|any may hold that it means power
|Ousc improvements, and a great deal
DI work that apparently has nothing
~ do With the line--scrampped
racks, old boilers. for instance.
IT Is always dangerous for the city
~ make any sort Of bargain with the
N y. r.. II you know that a man is
/rooked, and are skinned in deal after
zeal. and yet go on trading with him.
What Is akcourt 20 which You appeal
[If relief likely to say TO you? Isn't
likely to laugh at You, aud tell you
nat you knew the risk you were run.
hing and accepted IL? The same sit
|atiop exists between the city and
The D. u r.
Any semblance of an agreement.
ven II II Is only day-to-day agree
|ent. Is bad for the city and favor
able for the ID. U. r., for IL gives the
|ompany just so much more OF hold.
~ the Supreme court mas held thas
ne company has no rights In Forrest.
|Io company will cease 10 pay taxes
"a that street; but Il will continue
p operate Its cars and TO collect Eve
rent fares. What has the city gain
|1f II has won a battle In court, bu.
'pe material profit has gone TO the
<pmpany.
The city cannot be too careful In
|8 dealings with the company. II has
harmed that I'm long course OF ex.
eficnce but II doesn't seem to gain
much advantage from It's lessons"