The Detroit times., 1913-02-05
SAYS LAWSON PLAN ROAD
TO PUBLIC OWNERSHIP
tContiausd from Page one)

until we have from the supreme cour
the decree In the FOREST rental mat
ter" he began. That decree will de
clare whether the company must va
cate the street, or whether the coun
ell must take the first step and ordel
fits removal. In either case, the com
pany IL at the mercy OF the city. pro
vfded that we hold ourselves ready
to get along without cars awhile.
Il would not give day TO day
agreement until the company pays
all the rent II has owed since July.
1910, amounting TO 5000 day. The
company has about 100000 year
net operating revenue. II We had
the same terms as are in force In
Chicago, they would have TO pay
9750,O00 into the city treasury each
year. II were an alderman, i would
insist on the payment OF this rent
as a preliminary. ..
"Two courses are open to us. One
is to push ahead for municipal own
ership, opposing the company at every
step and paying the old fares and SUD
hitting to the same extortlon as In
the past A number OF our good clu'
zens are advocating that course. The
other plan Is TO use the club in our
possession, given US in the Fort-st.
rental case, for lower fares and an
agreement to sell.
Personally, | am disguised with
the utterly dishonest methods and
the INSCRIPTIONS deception employed
by the ID. u. r. in its dealings with
the city, especially I'm their claim OF
a SIG, 000,000 appraisal, which Is twice
the real value OF the company's plant.
Under either method, we must
take time to pass the measures re-
Quired before we can own and oper-
ate our street railways. That may
take from six months to two years.
Under either method, there must be
q referendum at the end OF that time.
There, the similarity between the
plans ceases. Under the Lawson or
iinance. the d. u. r. will have to
sell. and a simple and effective means
Is provided for fixing the terms. A
majority decision OF the circuit bench
will prevail. subject to. appeal to the
supreme court Under the other
method, the city must ac-1fre right
OF eminent domain for which there
are no laws now. Then jury In
condemnation proceedings must de
eide, first, that there Is a necessity
for the city's acquisition OF the street
railway; second. the price which
ought TO be paid. One juror may
block the whole measure by refusing
TO admit the necessity, or may hold
out for many millions more than his
fellow jurors think fair price. AZ
ter that is settled, there may still be
an appeal to the supreme court.
Pay Nothing for Franchises.
Under the Lawson ordinance we
pay nothing for unexpired franchises
Under any other plan We pay full
value for them. possibly millions OF
dollars. I want TO give Mr.. Lawson
credit for this section OF the ordinance.
Il am OF the opinion that the COM
pany will be forced to accept the ordi-
nance, II the city officials stand hrm
and IL the people back them.
'The bondholders would not be d.
rectly bound by this ordinance, but
would be forced TO accede; otherwise
their security would be broken into
fragments by the tearing up OF the
tracks"
Mr.. Lucking explained that by the
doctrine known as ''marshalling OF
securities" the bondholders' rights ex-
tend to the-whole d. u. r. system, so
that they will not lose by low valua-
ton Of the Detroit properties. provid-
ed the tracks and equipment OF the
rest OF the system can make up the
difference.
He proposed three amendments
one providing for a referendum after
the circuit court fixes a price, and be-
fore II signs It's decree; one providing
tnat the city 10 not barred from con-
demnation proceedings, IL II desires ~
ADOPT that course; and a third. pro-
viding that interurban cars NAV be
will.
Jetfries In Action.
Justice Jeffries made a vehement
attack on the ordinance.
unfortunately" he said, "the gen
tlemen who will construe this ordi.
nance are not gentlemen who, even on
the bench Of Wayne county. have ever
SHOWN any sympathy with municipal
court. ''
1T has been stated here that we
nave the ID. u. r. where we want
them. l believe we have, and that We
ought to keep them there. The dan.
ger u that you let 90 OF the very club
mat You propose to use The purpose
OF THIS ordinance Is To- shut OF the
avenue OF competition. TO get a settle.
ment, TO throw II into the courts for
interminAble litigation. Tho bondhold
ers may intervene and thrust Il into
the federal courts"
You haven't looked up the law.
NJ. Lacking interjected. why dIdn'
they Intervene In the Fort-st. case?"
They WILL" replied Mr.. Jeffries
They VIII. II they have any hope o
ultimate victory or delay. No settle
nent can ever be made with the d
N, r. through litigation. Litigation
= simply the laws delay.