The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1915-10-13
THOMPSON
WALloPS
news AGAIN
Answers Wall Over
Payment Of Outside
B0ndholders
NO RELIEF UNDER
PIG-N-POKE PLAN
City Would Still Be
Stuck" For Heavy
Interest

Former Mayor william B. Thomp
son has addressed . second lettsI
to the Detroit News on the street
railway purchase plan. In which hs
deals with the cry that huge sumi
Are being paid to d. U. R. bond
holders In Now York and Mon
treal. The letter follows:
To the Editor Of the Detroit News:
Yesterday I asked you. In the in
terest Of the people Of this city
who are taxpayers and not TAI
eafers. why you had changed from
30 sQuarely on the street rAiiws,
! issue within four years
I asked you why your own rule
applied 10 the Thcmpson-Haiiy ordi
nance Of 1912. was not . fair meas
ure to apply to the blank check
pig-in-a-poke proposition which you
are nov supporting and frsnicaliy
urging the people to pass.
So far you have made no answer
Perhaps the questions were embar'
! RAISING and the answers, IL true,
would have TO be stultifyins.
Let me give You some easier
ones today, that are just a. init
matsiy associated with the issue.
You want the people to consent
/ to buy the street railways on your
plan, don't you.
You have admitted that the city
win have to pay for them. q price
fixed BY the court. II II consents to
oct In that capacity.
You claim that the city will pay
for the railways out Of their earn
inss In the course OF many years.
Your street railway board has
made an offer Of nearly $4,000. 00f
for the properties.
That will be the least price likel,
to be fixed by q court. and II may
exceed that sum by Is per cent.
YOu are not going to pay fou
them In cash, out Of hand.
Your street railway board offeI
On the subject says that ''the price
II to be paid by paying the mort
cages now existing upon the prop
erty as they fall due. from time Il
time. TO the extent Of the price
/ whatever II may be. a. fixed bv the
Judges"
Your columns have been full oil
1 denunciations OF the Montreal and
New York bondholders whom yor
| seek to make obnoxious to the pub
lie mind because you reduce theii
interest earnings TO so much m
hour.
| Your trio Of golden calves before
!, whom you ask the city to bow rs
the source OF all wisdom on this
| subject. has said not q word In it,
I offer to the common council about
the payment OF interest on the mil
lions for which the city IL to 90
into debt. In their letter on the sub
ject to the common council.
| Your paid lawyers are telling the
public what IL now paid for inter
est will be applied TO the purchase
OF the property.
Your own columns carried. on
Oct. II. a statement that the earn.
ings Of the property are $4,000 per
day, that its expenses. not incIud-
Ing interest, are $1,000 per day.
and that Of the difference "the
street railway commissioners will
set some OF the 5000 4 day aside
. into a sinking fund,-to accumulate.
using other parts OF II to improve
the service and 10 pay the men bet
ter wages"
But not q cent ri II ~ to be used
for interest 10 paw the Montreal
and New York bondholders their 20
many hundred dollars an hosr about
which you have been going into
Mysteries for years.
Let us read tho actual contract
on this phase Of the subject. II
says, n Section 8: -
Interest upon the mortgage
Iodstte6Wsss which I've city end
the city pvopsrty purehaeed
hereunder, are 70 pay sN1 eoe-
charge, shall be paid ~ the ely
from earnings - hereinafter
prev,ds1, seeerdIse - Che tssms
~ sveh mortgage Indebtedness
from oats ~ transfer ~ psssss-
sloa.
Now what are these terms:
The Detroit railway aostsAse. due
in 1884. has eI.sSo,oee still pnpAid.
and bears interest at I'VE psr cent.
The Fort Wayne q Belle isio rail-
way mortsags hos ei.soo.ooo out
standins until 1877, and bears In
terest at Ave per cent.
The Detroit Eiectrfc railway
m0rtengs hes oi.ioo.eoo outstsnd.
ing until 1919. and hears interest
at ave per cent.
The Detroit United railway mort.
gags has el4.SSs,ooo outstanding.
until 1o33, end bears interest Al four
ma one-hsIf per cent.
The Detroit United railway col