The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1915-07-28
Details of Plan for
Taking Over System
Announced
COURT WILL FIX
PURCHASE PRICE
Believed Most of Cost
Will Be Paid From
Earnings

The scheme by which It is propos.
cd that the people OF Detroit take
over the street car system within
the one-fare rome OF the d. U. Il. was
made public. Wednesday morning.
The d. U. r. directors have agreed
to recommend to the stockholders.
In their meeting. Aug. 2. the accept
xnce Of the agreement drawn up by
the attorneys Of the street railway
commission. Richard l. Lawson and
Alfred Lucking. and those or the ID.
U. r.. Elliott q. Stevenson. william
L. Carpenter and Hinton E. Spald-
ing.
II the stockholders ratify the
agreement, II will be submitted TO
the people. probably in September.
together with the charter amend
ment necessary for putting the
agreement into effect. II the people.
by a three-hfths vote, ratify the
agreement and adopt the charter
amendment, the city has 60 days In
which TO start suit. In the Wayne
county circuit court. 10 fix the price
which Is to be paid for the prop
critics. Within 80 days after the
suit Is begun. the ID. U. r. must turn
over the properties to the city.
In other words. II the election In
held Oct /, and the agreement Is
ratified by the people; II the city
takes i,s full period Of go days be-
fore starting suit. and II the COM
pany then takes It's full 80 days be-
fore turning over the property. the
lines will become municipalised Jan.
!, 1915. II is the hope Of the com.
mission. however. that municipal
ownership will become . fact before
that time.
The city's attorneys believe that
the circuit court will appoint q mas
ter 10 take testimony concerning the
value of the property, and that the
record thus obtained will be turned
over to the six Judges for their de-
cision.
The city is to pay for the proper
ties In the following manner:
The liability OF the city. based on
It's own faith and credit, 10 limited
to two per cent Of the assessed val.
uation, or about 100000. The
rest OF the purchase price 10 to be
secured by the street railway prop
erty Itself and by the earninDs.
The city IL to pay the various
mortgages of the d. U. r. - they
fall due, until the price nxed BY the
circuit court IL paid. The court 10
to determine how tho m0rtsAges
over and above the price are - be
paid, but the city 10 specifically 70
lieved from liability for them.
The commission believes that the
lines will be paid for out Of earn.
lngs, except part Of the hrst mort.
gage due. 81 .0o0. 900. on June /. 1915.
for which city bonds will have to b
issued, and the remainder due IN
1857, for which city bonds may hsvs
10 be issued. The commission states
ns belief, however. that the earn.
!nss Of the railroad and the borrow.
M power based on the pledge Of
future earnings" will be enough to
,ettle the remaining mortgages In
1892. without the issue Of bonds
based on the city's faith and credit.
10 making this statement. the COM
mission takes into consideration the
reed of extensions from time to time.
The street railway commissioner
N announcing the purchase plan
rave out the following statement:
THE contract, which II subject 20
approval by the people before II be-
zones effective, provides for q sa'c
b the city Of ali the lines and p-op-
Drty within the city lim'ts and with
b the one-fare sone. at = price b be