The Detroit times., 1915-08-06
SAYS BOND
FOLK CAN
TIE UP DEAL
Have Right To Inter
+ vene in ID. u. r. Pur-
chase, Says Lawyer
ELECTION IN
NOVEMBER LIKELY

Declaring that Attorney Richard
I. lawson Is wrong In his contention
that individual bondnolders cannot
intervene to prevent the conveyance
OF the ID. Z. r. properties To the city.
In spite of the provision OF the agree
ment that the trustees OF the bond
holders must be parties TO the suit
to Ak the valuation. a prominent De-
troit attorney maintains that IL the
price fixed by the court Is less than
the value Of the bonds, the individ-
ual bondholders may be able to block
the sale.
IF you buy a mort gAge. and make
me trustee he said, Il can consent
to the sale of the property. provided
IL secure for you the face value OF
the mortgage. But IL I consent to
the sale Of the property at less than
the mortgage calls for. you can stop
me, no matter what agreement ]
have entered into. You do not sur
render such a right to the trustee.
In this matter. the ID. U. r. r.
planning TO go into court with the
contention that the city has fixed
a minimum value by its offer to pay
the face Of the bonds. II the court
accepts this contention. and fixes
the value At $24.000.000 Tin round
numbers. the bondholders win be
satisfied. But II It fixes the value
of the road at $4,000. 900. az some
people seem to think II will. the in
dividual bondholders are very likely
to intervene and tie mp the SALE"
| But how about the holders of the
bonds Of the Fort-st line, where the
franchises have expired, which
amount to 31.700.0 o0?" he was ask
cd. Their only security is the prop
erty In the streets, which the city
can order torn up"
They might be satisfied with the
price fixed by the court" was the
reply. But there might be others
who would not be satisfied. They
could intervene and tie up proceed
ings for several years.
Sheriff Oakman said, Thursday.
that he has not made up his mind
definitely about the settlement
] I'm have to see newspaper dis
cussions OF It before I can make up
my mind" he said. an general. I
Am In favor Of municipal ownership
but know very little about the
terms Of this agreement. I'd like to
see the question settled. This may
be a good opportunity. have con
hdence In the business ability OF the
street railway commission, but
want to hear some discussion OF the
scheme before decide definitely"
Raymond Van SICKLE. attorney ant
member Of the Board OF Estimates
In another who has not made I'D hi.
mind.
IL want to read the papers and sc,
what points are brought out" n,
said.
Former Judge James o. Murfr
said: There's no use asking m,
2 about ii. am and always have beer
r opposed to municipal ownership. Tn,
q weakness OF the proposed settlement
/. Hes In the fact that II doesn't nam,
n a price. and leaves the value TO b,
hxed by the circuit judges. witt
p ell respect to the circuit Judges
l. what do they know about the valu,
a of Q street railway"
e What do they know about tn
facts of most OF the cases whicl
d they handler" he was asked.
i AT least, they know the law" r.
y piled Judge Murfn.
The administration now favors IN,
submission OF the street railwa,
. purchase plan to the voters in No
: vember instead of September. Tn,
September election was tentatixel,
planned By the railway commission
: before the final agreement between
90 eity and ne company on tn
= 4 - ~ e. "A, y PA X I.