The Detroit times., 1915-10-13
Answers Wall Over
Payment of Outside
BOndhOlders
NO RELIEF UNDER
PIG-IN-POKE PLAN
City Would Still Be
Stuck" For Heavy
Interest

Former Mayor William b. Thomp
son has addressed second letter
TO the Detroit News on the street
railway purchase plan. in which he
! deals with the cry that huge sums
| are being paid TO ID. L. r. bond
| holders in New York and Mon
treal The letter follows:
To the Editor of the Detroit News:
YESTERDAY asked you. in the in
terest Of the people OF this city
who are taxpayers and not tax
eaters. why you had changed fron'
so squarely on the street railway
issue within four years.
asked yon why your own rule
applied to the Thompson-Hally ordi
nance OF 1912. was not q fair meas
ure 10 apply 70 the blank check
pigin a-poke proposition which you
are nov supporting and franticaily
urging the people to pass
SO far you have made no answer
Perhaps the questions were erbar
RAISING and the answers, IL true
would have to be sfultifying-
Let me give yon some easier
ones today. that are just as init
mately associated with the issue.
You want the people to consent
10 buy the street railways on your
plan. don't you.
You have admitted that the city
will have to pay for them. a price
fixed by the court. II 1t consents Il
act In that capacity.
You claim that the city will pa,
for the railways out Of their earn
ings in the course OF many years.
Your street railway board hai
made an offer of nearly 324.Oco. oo'
for the properties.
That will be the least price likel,
TO be fixed by q court. and 1t ma,
{, exceed thar sum by % per cent
You are not going to pay TO
them in cash. out of hand.
Your street railway board offe
on the subject says that "the price
is TO be paid by paying the mort
cages now existing upon the prop
erty as they fall due. from time I,
time, to the extent of the price
(; whatever II may be. as fixed bv the
judges"
Your columns have been full o
denunciations OF the Montreal an
New York bondholders whom yo'
seek TO make obnoxious TO the pub
! lie mind because you reduce thei
interest earnings 10 so much al
hour.
Your trio OF golden calves beforl
4 whom you ask the city TO be~ a
the source of all wisdom on thi
subject. has said not word in IL
offer 10 the common council ahou
the payment of interest on the mi
lions for which the city IL to g
into debt. ia their letter on the sui
iect TO the common council.
Your paid lawyers are telling tn
public what IL now paid for inte'
est will I've applied to the purchas
Of the property.
! Your own columns carried o
II Oct. II. a statement that the earn
ings ~ the property are $4,000 pc
day. that its expenses. not inclut
!. ing interest. are $4,000 per da!
and that If the difference 9Th
I street railway commissioners wi
set some of the $1,000 day asid
into a sinking fund, TO accumulate
using other parts OF n to iniprov
the service and TO pay the men be
ter wages
But not a cent ~ II Is TO be use
for interest to paw the Montrea
and New York bondholders their 3
many hundred dollars an hour abou
which You have been going int
Mysteries for years.
Let VS. read the actual contrac
on this pAaee OF the subject.
says. IN Section @:
Interest upon the mortgage
Il Indebtedness which The city and
The city property purchased
hereunder, are 20 pay end de
| charge, shall be paid BY the city
1 from earnings ~ hereinafter
provided. according 70 the terms
Of such morsssss Indebtedness
from date Of trsnssse ~ possss-
sIon.
Now what are these terms:
The Detroit railway m0rteass. du
in 1894. has 1850, 900 still pnpai'
and bears interest ~ Ave per cent.
The Fort Wayne D Dele Isis raj
way mortsase has e1.20o.0oo on
standing until 1877. and bears n
terest at I'VE per cont.
| The Detroit Nlsetric raiiwa
mortgage has 100000 outstsnt
Ing until 1919. and bears inieres
az Ave per oent
1 The Detroit United railway NOR
gage has e1l.sss.ooo outstanding
until 1889. end bears intevest III fou
IND onehaif per cent.
] The Detroit United railway co
- u =, 4. q 4 4 ~ 1. :. +, y. n, AZ sf