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Money Needed To Grease The Wheels

Money Needed To Grease The Wheels image
Parent Issue
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OCR Text

There is little if any change in the street car situation since the last issue of the Argus and the running of cars on our streets appears as far away as ever unless the common council takes the advice of the Argus and declares the franchise now held by the company void. Strange as it may seem the interests of the city are best served when stock and bonds of our public enterprises are held by outside capitalists. When action is to be taken which will effect the pocket-books of our own citizens, the council hesitates to act. This may not be the case in other cities but it certainly is in Ann Arbor. The eastern capitalists who have already invested $50,000 in the bonds stand ready today to refund the bonds and invest in $40,000 worth more of the new bonds, taking them pro rata with the amount they now held. Were our local capitalists as ready to run the risk as the eastern men, cars would soon be running and large extensions of the system made. But as the case now stands a settlement of the difficulties is now blocked by the Ann Arbor Savings bank, which holds $io, 000 worth of the bonds and under the same arrangement as the eastern capitalists now stand ready to enter into, the bank would be obliged to invest $6,666.67 more, for which they would receive an equivalent in the new bonds of the company. It is understood that with one or two exceptions the directors of the bank are willing to accept the proposition, but so far those who oppose the measure have been able to prevent it. One of the directors suggest that this difficulty might be arranged by the extra bonds being subscribed by other residents of the city who are anxious to see cars running again. It is reported that word was received that the eastern bondholders would hold their proposition open until last night, but it is hoped that this is not so, for in case the bank does not see the way clear to make the further investment called for, other public spirited citizens may take the extra bonds as suggested.


Ann Arbor Argus
Old News