The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1913-06-04

his positioa. a. this does not deAns d
: liked term. and thur avoids she Sec
tion o. the home rsle &c, which says
: that torn cannot be lsnst hentd or
shortened.
Mr.. Lawson said that the words ''re-
sardlsss Of the city's bonding linit."
In TIE municipal ownsrship section OF
the charter, should be omitted.
The legislature nx0S the bonding
limit. and Il 10 not permissible FOR nny
other body ~ usurp that power he
/ said.
: Mr.. lawson. In reply to Mr.. Burtons
question 40 to whether the city can
Issue bonds under the section Of the
/ Verdier act permitting bonds up to 2
per cent OF the assessed valuation. for
the acquisition OF public utilities, said
that the city has that power. and that
the two per cent Is In addition 70 the
4 per cent bond limit for general pur-
poses.
The legislature has full power to
4 AK the bond limit. according to the
constitution" he said. 1t has full
power to permit city to reach that
limit In any manner II may desire.
/ The legislature has said that the city
can increase the bonding limit two
per cent, by three-fifths vote, and
cannot raise II again within two years
1t has also said that when the city
wishes to acquire public utility. 1t
can issue bonds up to two per cent OF
its assessed valuation. This Is for a
specific purpose, and Is In addition TO
the other increase
1T can issue these bonds within the
same two years." asked MIR. Burton.
Il shall hold that the city can" Mr.
Lawson replied
Mr.. Burton asked several other
questions, all covering the same point,
and elected q fuller explanation
The city has had a general bonding
power, up to per cent. said Mr..
Lawson. But 1t has gone to the legis.
lature and received power TO Issue 9TH
er bonds. Now. though the city bond
Limit has been increased TO per
cent. the legislature still has the pow
er to grant a further issue OF bonds
for the acquisition of a public utility.
This power has been exercised by the
| legislature, which has granted the city
the right to issue bonds for that pur-
pose, up to per cent of the valua-
ton. There Is nothing to prevent the
legislature from giving the city power
10 issue bonds up to 100 percent.
Mr.. Burton insisted that tn @ legis-
lation increasing the bond limit To /
per cent included the words public
utilities IN its definition OF purpose.
l"lf there another kind OF public util-
, ity 10 which the per cent power re
fers?' he asked
hats Cebatable ground, | admit,
Nv Lawson replied. But Il this COM
mission did not legislate at all, the
city would still have authority, under
the Verdier act, 10 issue bonds up to
2 per cent. III you merely establish
the right OF ownership of public utili-
ties. YOU can issue bonds under the
Law"
Couldn't corporation bring up the
question in the courts To prevent a
vote on the charter" Mr. Burton in
CURED.
II think SO. but the point will prob
ably be decided within four months
by the supreme court: We are trying
to have 1t heard in the June term"
was the reply.
Mayor Marx was Quizzed by Mr.. Bur
ton as to the ACCESSIBILITY OF giving
the street railway commission power
TO ask the council 10 issue mortgage
bonds in any amount.
Suppose a mortgage is drawn mp
for $4,000. 600" Mr. Burton said.
Once this mortgage Is approved. the
council must issue the bonds AT the
street railway commission request,
without any check whatever. The
commission can sell them at 80 cents
on the dollar. II II wants to- Is that
wise?"
Ii took some time for the mayor TO
get Mr.. Buttons point and when he
did, he asked Mr. f'razer's opinion.
Mr.. Burton has the wrong idea,
said Mr.. Frazer. The common coul-
ell. not the commission. issues ana
of the sale. Ii the common council
wants to sell the bonds below par. it
can do so; II represents the people.
Mr.. Burton said that II is likely that
only part OF the mortgage bonds would
be- issued at first, and said that the
buyers would want security that later
bonds would not be sold at less than
rar. Controller Heineman was asked
his opinion He said that no bonds
should be sold at less tnan par. He
suggested that 50-year bond might
be issued. redeemable at the will or
the commission after 90 years
Mr.. Moore spoke against giving the
street railway commission power to-
negotiate with the d. u. r., as such
negotiations might endanger the rs-
suits Of the victory OH the Fort-st.
case. Many minor points were dis
cussed. and at noon Mr.. Burton an
nounced that he had still other mat
ters fon which he would like to quiz
Mr.. Frazer and Mr.. Moore. Ii was
finally agreed that the municipal own
ership committee viii take up the
points with the attorneys. and report
to the commission.