The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1915-08-18


be turned over TO the City ~ onee
after the people approvs the centrnet
City TO M the price, Thus the City
Will DO operating tie own lines. fuFa-
ishing and improving it's own service.
while the court 10 en9ssed IN tak!n4
i "1 the 9:ir and rr ressonaSls Price
The City has sixty days after the
vote OF the people before starting suit
70 hx the price, during which sixty
pay be making. All tie arrangsmeats
for operating the property. There
will not DO the. break OF q minute
In the service. no interruption and no
inconvenience 20 the public.
the mortgages now existing upon the
property a. they fall due, from time
10 time, 20 the extent OF the price.
whatever that may be. a. nxed by
Thsse mortgages fall due At differ
emit times. beginning. ei.ooo.ooo June !,
1915. the great bulk Of the amount
falling Que in iSs2. No payment
!. nit" isic. Meantime the so City /. MAXI max.
Ing the profts instead OF absent own
The city obiisatss itself personally
Sny for two cent cent OF rs hs VII ss
about eli. ooo.0 900. The balance OF the
price 10 secured only on the property
and Its earnings BY this plan the
general city financial system !: not
Interferrsd with by the street railway
hnancing; that 10. II does not AFFECT
the City's borrowing power for other
improvements.
A sinking fund out Of the earnings
Of the railway 10 provided for, which,
expected s BY s the OF e: ssw wal,
cv6ntually and also provide the funds
for bettermsnts and extensions.
No part Of the amount which the
Gy Sa.As ,i is':'s g sy
which falls due Juno \, 1915. 1t Is
ostimated by the Commission that q
considerable part OF this nrst pay
ment may be realised from earnings
| before June i. 1915
The mortgage debts over and above
the purchase price must be paid by
the railway company. and the cours
10 given full power and control over
this subject to provide that 2 perlec'
title be delivered. All OF the raj al.
city 10 pledged to pay the surplu,
| OF MORTGAGES, and full power and
control over II 10 given to tho court
to compel the payment OF this sur
E iitt lines. Meantime the city pay,
| nothing out OF it, own FUNDS Until
1882, excepting . part Of the $1,000.
900. June I. 1915. and this can easily
be made out Of earnings In very
In order to bind all Of the mort.
gage bondholders TO this arrange.
ment. the agreement provides tnas
their representatives. namely. tns
made parties to the suit. and the ran;
way company agrees that they shail
all enter their appearances In the
suit "in order that all person.: inter,
nil interests protected and a perfect
The proposed charter amendment
II adopted, will give the necessary
powers 70 tie Railw csun CGm ao csrps
out the City's part OF the contrec'
and the necessary powers 70 opersts
the railway with success. ~ meke'
| II the duty OF the Board 70 20 con.
cause the property TO pay for itssll
| eventually. 1t provides for savtngl
to be set aside regularly tcalled 9
sinking fund.- out OF the earnings %
meet ultimately the so pa nscsssary e1.
tensions and betterments. In case any
| city bonds should be issued at any
time the Board 10 required TO pay
from s:rnins ;ho OF c fes T TrsssSrer II.
intcrcst on such bonds.
Much attention has been given b,
the Board to the question whetnel
the City can operate the ~ sG shi. p a1es
ton is past operating data, . re-
| sume OF which, together with sink
Ing fund computations. 10 nsreto ~
aT rhe whole plan OF the Commission
IN to nay for the entire. property An
Its extensions out OF earninEs II
extensions were necessary the pront
could pay the purchase price an
SP :.: oq f.r Ss. sy iss but :. sstsn
sions and improvements are neces
sary in the meantime. two methoo
OF procuring the necessary aoS.'osnss ~
srs.1 h .msn sssn 0r1 Tns rst IL
APPROXIMATE amount OF sl1.000,00O
the other is by piedEins the esrn ntho,
Of the re, rt I'll w.yy:,,s hh.s for the pay
ment Of the Si.OO0.ooo due in isis
but il will be available. II needed
| for any subsequent payment. a..
s II I: the Of e tSs Board that out.id
Of a part OF the $4,000 900. due u u
1915. It will never be necessary t'
call on the City to Issue any OF ~
own bonds to meet payments. put I'M
rowing power based upon the pledg'
OF future earnings. Will take care o
all future payments.
/ The Board believes that the propo
sition, as embodied In the contrac
with the Company. In the most prac
| tical and economical method that cal
| be evolved at present for securing
| possession OF a street railway system
for the City. II provides for promp
delivery OF the property At TAI
and reasonable price. on q basis tina
IL entirely workable from q business
standpoint The Board feels eQuail,
confident that the City can enec
economies In operation and Improve
ments In service under municlpa
ownership, such as will well warren
taking over the lines. aside from I'M
broad advantage OF removing tn
| City streets from corporate contro
and the public business from conse
ouent corporate influence.
We therefore request that th'
questions OF approval OF the contrac
and Charter amendment, a. attached
hereto, be submitted to a vote OF tn
| electors at an early date. ana re
spectfully recommend their approve
by the electors and the Common
Council.
Respectfully submitted.
BOARD or STREET RAILWAY
COMMISSIONERS.
ny JAY q. HAYDEN,
Secretary.
AGREEMENT.