The Detroit times., 1913-06-02
4 BATTLE
looming ON
i. 0. BONDS
oouaf 20 Permit Sale Without
DuicakLimit Draws Hot OPP
4 position Both on and
on Charter Board
JOHNSON SAYS
n CITY SHOULD GET PAR
liter Will Be Fought Out
Il Next Tuesday-Denby is
New President

- hot fight IL expected In the chaf'
commission, Tuesday morning.
hen the munic!ra, ownership proVis'
= Of the charter come up again ior
cussiOn. ON whether the street rail-
~ bonds secured by a mortgage on
- property may be Issued 1t less
IN par, which would be permitted by
~ section as framed by the commit
xWayor Marx notified Chairman Ing
M that he will be on hand, Tuesday
18th Corporation Counsel Lawson anu
Decial Counsel A. II. Frazer and AL
"a Lucking. to answer any questions
~ commissioners may ask. Mr.. Ing
IN will prepare list of the points
which the commission wants ell
rhtenment. and will submit them &c
- attorneys, SO that they may have
Ne before Tuesday to prepare them
lves.
"Reminiscences Guthard and Heating
Disted, last Thursday, that no bonds
the city, whether secured by the
Tvs faith and credit. or by mort
re. should be sold at less than par
Aey will fight for this principle, and
~ will have the assistance, II they
I'D Il, Of several bankers.
ysIt would be very bad policy for the
<Arter to permit the issue OF any
nds below par" said John n.
hnson. president OF the Peninsular
nte bank, to The Times, Saturday.
DO not believe that it IL legal TO
n bonds secured by the faith and
odit Of the city below par; as to
~ other bonds, do not know, and
IND have to secure legal advice.
- even II the street railway bonds
o secured by q mortgage, the run,
= Of the road IL an operation
Sntt1ed with the city. and the sell
~ q the mortgage bonds below par
IA not help rejecting on the city Q
noral credit.
The safer plan. 1t seems to me.
lid b to prohibit the selling OF
80 bonds below par. and to leave
roto Of interest to be regulated
circumstances may direct to secure
q. above"
6pntroIlsr Heineman also agrees
1 & would be bad policy to permit
onlo Ct the mortgage bonds be-
q par.
Uommissioner Ingram and Ahern
the other hand. believe that the
~ railway commission should
- q Wide financial powers as the
nd Il directors Of any private
ut railway company.
u can understand the attitude OF
bankers," said Mr.. Ingram. They
proJudiced by the customs and
Incidents Of their business. II were
banker, ] suppose / would take q
Mar attitude. But I believe the
Ut railway commission should be
fr6s to make the best possible
ogaiA for the city. and not limited
. charter provision such a. that
bpossd."
Ihe mortgage bonds will have moth.
70 do with the city's credit" said
Ahern. They will be secured by
4konchise whose holders will take
~ the street railway lines II the
fails In it, operation. The gen.
" finances of the city would not
Ter By such foreclosure"
Commissioner DENLY. who was
Dpted president OF the commission
succeed Mr.. Dust. Saturday morn
-. II opposed to the wide powers OF
0d Issue granted to the street rail-
~ commission by the charter pro-
ZION - II stands.
There should be some check on
commissions power to issue
0ds," he said. There Is nothing
the provision to prevent them from
0ering the council TO issue mortgage
Dnds to any amount they see 1T
Dether the proceeds OF those bonds
- needed Immediately or years
once, ! believe that the mayor OF
- common council should have
Minority to prevent such an issue. Il
their Judgment IT is inadvisab!e
ne words regardless OF the bondlnl
nit should also be stricken from
~ section governing the issue OF cir,
nds to the amount OF per cent o
- valuation. IL seems TO me that ",
~ flying In the face OF the constitu
~, II we leave them In, for the con
Mutton prescribes strict bonding
tit"
Mr.. DENLY, on taking the presi
oncy. to which his election wa
Ranimous, said: II hope that ",
AL work together with mutual az
Dcjatlon OF one another's views an,
mutual respect and courtesy. as hith
yfo. President Dust used the ut
>oot courtesy, and showed great cor
Doyation and absolute impartiality
deeply regret that Mr.. Dust's dutie
I'VE called him elsewhere wis
Aot he could have remained 10 go
y end Of the work OF the commit.
b. I hope that the commissio
IN proceed expeditiously an
omptly In its work We are goin
have fghts-hard fights. For IN,
IT, I intend to yield to no man /
M the things I think right
- Of my rulings displease you,
-, that you will consider that q,
~ myself acting for the best int
= Of the city. and not for any pr
- consideration"
6vfod r. Schmalzriedt was the
Dcted q member OF the commission
All the vacancy caused by VI
ITS resignation. Mr.. Schmalzrie,
y tsUmised to tell the commission
n1ay, whether he will be able [
~. Il 10 considered doubtful tina
W11l take the place. In that even
NO. =. McCarty, who ran next
DohmaIsriedt, will be passed owe
y60l6. and the position VIII b
~ - Jsmes 8. Holden. the ne,
u the list. II 10 understoo
III 0cCarty ID not acceptable
10y Of the commissioners, an