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The Columbia University Libraries reserve the right to refuse to accept a copying order if, in its judgement, fulfillnfint of the order would Involve violation of the copyright law. Author Parsons inckerhoff ade & Douglas Title Report rapid transit sy ste m f o r th e C ity of Place Detroit] 918 MASTER NEGATIVE « COLUMBIA UNIVERSITY LIBRARIES PRESERVATION DIVISION BIBLIOGRAPHIC MICROFORM TARGET OMGINAL MATERIAL AS FILMED • EXISTING RECORD nusiNeas 540 P254 Parsons, Brinckerhoff , Quade and Douglas. Report on a rapid transit system for the tity of Detroit, made to the Board of street railway commissioners, city of Detroit, by Barclay Par- sons & Klapp. t New York? 1 1918. Tii, 123 pt maps, diagrs., charts, fold, table RESTRICTIOMfi ON USE* TECHNICAL MICROFORM DATA RLM SIZE: * : REDUCTION RATIO: lL>K IMAGE PLACEMENT: lA (llAl IB DATE FILMED: i-lb'^S INITIALS: FILMED BY PRESERVATION RESOURCES. BETHLEHEM. PA. CO b 3 3 cr o >> N if} (30 M 4^, CftI I in or ^3 zm 3D 9i tsl 00 INI 31, mm > CD o m -1- OQ X ^ m m miggP ^^^^^^ X *< N X71 1:^ ISIS P p 2.0 mm ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdef8hijklmrK>pqr5tuvwxyzl234567890 ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyz 4 4^ ABCDEFGHIJKLMNOPQRSTUVWXYZ abcctefghijklmnqpqrstuvwxyz 2.5 mm 1234567S90 o o ^ ? > C Oil X -1 ^ O 00 0 6^ 3 3i b 3 3 01 If s || P «< JO i>3 CO bi 3 3 > 00 0, O o m MMISSION£RS CITY OF DETROIT 1917-1918 Jouv F. Dodos, Praciieiit Pkamcu C. McMAfi, Vie»-PMailfliit Julius H. Haass (V) Bdward T. Fitz Gbralo, Secretary VII BARCLAY PARSONS & KL.AW CONSUUTINO ENOINCCnS 60 WAt.1. STREET. NEW YORK WM, BARCUAV PARSONS M.M.aRiNCKERHorr W. J. OOUOI.AS December ist, 19 17 The Honorable Board of Street Railway Commissioners, City of Detroit. Dear Sirs: We have the honor of handing you herewith our report on a Rafud Transit System for the City of Detroit in accordance with your instructions and as covered in our ccmtract with you of May 21, 1917. In our previous rqxMt to you under date of January, 1915, we included detail traffic counts on every car line in the City as well as car route maps and drawings showing subway construction details, rearrangement of sewers, etc., etc. These and similar matters, useful principally as a record and for future reference, we have not repeated in the present volume, taking it that both reports will be available to anyone wishing to go into questions of detail. We call special attention to the financial chapter and the recommen- dations in this Rei)ort for joint City and Company ownership under commis- sion control as a possible means of the City ultimately acquiring complete ownership of the system. This discussion is of the greatest importance at the present time when the financial conditicMi of many city transportation systems throughout the country is so deplorable. We wish to express again our sincere appreciation of the assistance and hearty co-operation of the City officials and their staffs, as well as that of the operating officers of the Detroit United Railway, in facilitating the inves- tigati(ms we have made in the preparation of this Report. We are also indebted to the Appraisal Committee of the Detroit Real Estate Board for their courtesy in supplying carefully prcfMuned aj^raisals of rights-of-way for proposed rapid transit lines throogli various parts of the City, which service they rendered gratis to the Oty. Faithfully yours, Barclay Parsons & Klapp, Consulting Engineers. REPORT ON A RAPID TRANSIT SYSTEM FOR THE CITY OF DETROIT DIGEST OF REPORT For the convenience of the general reader this digest or condensed state- ment of the main features of the Report has been prepared. Direct quotaticxis from the full text of the Report have been made in some cases. This Report is supplemental to, and in many respects a continuation of, the Report made in 19 15 on the same general subject. The aim in the present Report has been to meet the Commissioner's request for a statement as to whether the growth of the City of Detroit, the increased traffic, and conditions of street congestion do not now warrant the initiation of a rapid transit program. Also, the effort is made to pcnnt out along what general lines a rapid transit system should be laid out for Detroit as it conttnties to flow. What stq»s should be taken in building up sudi a system to give inmiediate rdief, and whidi will provide llie nudens of a general rapid transit system, are described. The Report has been divided into five chapters. CHAPTER I— GENERAL BASIS OF REPORT This chapter, treats of past population growth and increased area of tlM City, together with estimates of probable future increases in both of these impor- tant items. The analysis shows that Detroit started its rapid period of growth in 1880 when the population was 140,000, reaching by 1900 a size of 318,967, by 1910 a size of 500,982, and by 19 17 alx)ut 850,000 people in the City and Suburbs. The prediction made in the 191 5 Report of 1,000,000 population by 1920 is repeated and the further estimate of 2.000,000 population by 1950 is set forth as a reasonable basis of future traffic estimates. In estimating the population at intermediate dates the assumption is made that the popu- lation will increase by equal yearly increments from 1920 to 1950, as it is ccmsidered futile to attempt detailed predictions of the fluctuations which will certainly occur, but which cannot be determined accurately. See pages 17, 37 to 40, and 58 to 60. I f BSPORT OM A SAPID TSANUT SYSTXM fOR DETROIT The growth in street car traffic is traced by years on each of the surface street car lines from 1904 to 19 17. The total passengers in 1904 are shown as i05,ooo,cxx), of which 78,000,000 were revenue and the balance transfer passengers. In 191 7 the total passengers carried were 440,000,000, with 315,000,000 revenue, the transfers being about 39 per cent of the revenue passengers, as estimated by a 24 hour check of the whole system. By a com- parison of population with revenue riders it is shown that in 1904 there were collected 248 fares for every person within the City, while in 1917 the fares per capita had increased to 361. From tlicse facts it is deduced that when the Gty has attained a popnlation of 1,000,000 in 1920 there will be 370 revenue rides per capita and a total tbcreliif% of 370^000,000 revenue rides per annum. The very conservative estimate is then made that from this point on the increase in rides per capita will be one per year instead of an average of from five to eight, as in previous years, and that in 1950, with a population of 2,000,000 and rides per capita of 400, ^ere will be 800^000^000 revenue riders. It is interesting to note that Boston commenced its rapid transit program when it reached approximatdy 830,000 population. The initial elevated railroad construction, the only form of rapid transit in Chicago, was com- menced when the city was slightly over the 1,000^000 mark and Philadel- phia's first rapid transit line was started when the city had approximately 1,400,000 population. Detroit, in the matter of size, has therefore reached the stage where o^er cities eilt«red upon their rapid transit development. Upon the investigation of growth in population and traffic contained in this chapter is based the estimate of the transit facilities required and the earnings which may be reasonably expected. It is not intended here to urge the commencement of actual construction of subways in Detroit at such a time as the present, when all financial and construction resources are under the strain of a great war. It is intended, however, to point out that a con- siderable number of years must necessarily elapse between a decision to build and the commencement of successful operati(m, and lHat of this period much of the time must be employed in the working out of the details of agreement, specifications and plans, which would not involve expenditures of large amounts of money and which, when completed, would make immediate construction possible upon the resumption of normal conditions. The summary of physical conditions, pages 34 to 35. gives briefly the findings frcMn the investigation conducted during the past six months. . DIGEST OF REPORT 3 CHAPTER 11— RAPID TRANSIT PLAN AND CONSTRUCTION PROGRAM The question of locating the rapid transit lines so as to serve l^est the interest of the City as it grows, is here discussed from tlie point of view of the origin and destination of the riding public. The residential distribution of the population is discussed in detail and the fact is pointed out that a line coinciding substantially with Woodward avenue divides the population of the City into two nearly equal parts, east and west of that line. It is further shown tliat an east and west line crossing Woodward avenue at about Ferry street, two and one-half miles nortb of tl» City Hall, divides the residential population into nearly equal parts north and south. It is also ^wn, * * * that there are an averse of over 28,000 people per mile of line resident in a district extending one-half mile on either side of Woodward avenue for the first four miles north of Grand Circus. Similar districts adjacent to Gratiot avenue, show an average of 25,000 i^eople per mile of line; along Michigan avenue, 20,000; Fort street, 16,000, and Jefferson avenue, 11,000 people. While it is true that dense residential districts do not always pro- duce a proportionate number of passengers, nevertheless, the fore- going relative figures indicate clearly the importance of Woodward avenue and the east and west rapid transit line paralleling Michigan and Gratiot avenues. Having thus located the residential end of the daily journeys of passen- gers, the places of eniploynient are analyzed by discussion of locations of factory and business centers and from this analysis it is deduced that the City has been growing with remarkable uniformity over its entire area. The factories, or points of occupation, have been increasing along the railroads and decreasing along the Detroit river with a tendency to and prospect of great future growth in the western part of the City. The general ^ft of the re^dential p(4>ulaticHi, since the last canvass and report, has been a spread- ing into the outlying districts, the location of densest population having moved outward from the center of the Qty a distance somewhat over one mile in the past three or four years. An analysis of the building permits issued by the City during 1914-1915- 1916 showed the greatest activity in this direction, building l^eing concen- trated particularly in the newly developed additions to tlie City and tlie out- lying portions of the old City area. Types or Rapid Transit Structures From the discussion of the types of rapid transit construction the follow- ing is quoted: In order to lay out a financially possible system, which may be 4 RBPOirr m A SAPID TSANUT SYSTEM FOR DSTBOIT fCslizect within a reasonable length of time in such a situation as that pftsented by Detroit, the necessity for low constructicm cost is oiwloiis. In the heart of the City, where the congestioti of vdnde and street car traffic and even pedestrian crossing traffic has become very serious, no (^her solution than by a subway system is possible. When, however, this extremely congested central district is relieved, IHrther extension of subways seems of douhtftd advisability as a foitral mettiod of reachii^ the many outside residential districts of a radial city and for soch extensions overhead railways are rcoom- mcndeda Oil p«C 43^ the subway transfer station at Grand Circus is iUnstrated, showing the north and south Woodward avenue and the east and west Mich- ifan-Gratiot avenues subways on different levels. An overhead structure is illustrated on page 44, with a single column lllaced in the center of the street for streets of over one hundred feet in width, thus combining the minimum of obstruction to light and access to adjoining properties. The cost of this structure is only about one-third that of a subway line. -\n overhead structure is also shown on page 45 on private right-of-way, the structure being so designed as to span the right-of-way, thus providing an additional vehicle highway, which could be utilized by trades and c omn iHT i al vehicles to great advantage. It is not possible to develop an adequate rapid transit system, self-sa|iporting, on a moderate fare without this use of cheaper type of railways. This has been the history and is now the approved practice hi other cities. Woodward Avenue anh Other Rapid Transit Lines The unique situation of Woodward avenue as the main business thorough- tare of the City and its most densely traflidced surface car line is develo|Kd. Taking into consideration the characteristics of the traffic growth previously discussed, the mcreases in and location of resi- dential districts, as just mentioned, and the trend of factory loca- tion, it is seen Woodward avenue is the heaviest trafficked, the most centrally located and the most rapidly growing thoroughfare in the City. Along its entire length it is becoming more and more a delivery district for passengers on the street itsdf, and the territory on either side is steadUy increasii^ in population density. In all of these dnuicteristics the mcreaics, tahen as a whole, are greater than . on any other line. On these gnwinds Woodward avcnnc is recommended as the initial rapid transit route. The other pO8S0)le rapid transit lines necessary for the City, as one dis- trict after another outgrows the capacity of the surface car system, are pointed out. On map No. 3 is seen the result of the successive building steps com- bined into a general rapid transit system intended to serve a population of DIGEST OF REPORT 5 two million people. The City area indicated on this map is 156 square miles, practically double that within the present City limits. It is stated, that on account of the level nature of the country and the equal desirability of many districts surrounding the present City, a wide distribution of the residential population must be expected. The preponderant of one and two family detached homes and an average population density for the whole City of only twenty people per acre is predicted. Building Program The construction program is laid out covering the period up to 1950, see map No. 3. This period is divided into two sections, the first one l^eing ten years for which definite lines are recommended while general recom- mendations are made for the second and subsequent period. It is pointed out as unwise to predict in detail the growth of the City beyond a very moderate term of years. The necessity for progressive building of rapid transit lines, as the City grows, is stated as follows : It is, of course, obvious that the building of all of these lines immediately would be financially ruinous to whoever undertook to supply the money for financing such a iMX>ject The constructicm must, therefore, be contemplated in successive steps and of these Woodward avenue is the first, to be followed by an east and west line parallel with Michigan avenue and Gratiot avenue, as above described. The third step, present indicaticms would suggest, would be a line to be located along or near Jefferson avenue. This line has many claims to preference in the way of a great prc^rtion of long distance riders from the outl)ring districts, i. e., east of Belle Isle bridge as far as Grosse Pointe. The westerly end of this line, if extended beyond Woodward avenue along Fort street, does not at present make a good showing. Tins might, however, prove tiw best method of reaching the district that will undoubtedly grow up along the River Rouge in connection with the Ford tractor plant. This same district might, on the other hand, be reached from the Michigan avenue line. The above routes are the most probable general arteries of travel along whidi rapid transit in the firtnre will be justified. The route whidi at present can be considered fidly warranted is that on Wood- ward avenue. On diagram page 48 is shown the rapid transit system, which, under the conditions assumed in the financial plan, could be devel- oped during the first ten years after a definite policy regarding the traction jHroMem of the City is decided upon. The high speed line on Woodward avenue is planned to be built first as far as Manchester avenue, the underground portion esctend- ing from Woodbridge street to north of Grand Boulevard. The short subway branches for the crosstown lines could be built next and might be used by certain street car lines for the purpose of re- t REPORT ON A RAPID TRANSIT SYSTBM FOR DETROIT lieving the downtown congestion. These subway branches could tlien lie extcndeii for rapid transit and connected to overhead con- struction in tlie location and to tbe extent shown oo diagram page 48, or as far as the financial situation, from time to time, may permit. In this manner it is intended to develop, as rapidly as consistent with a self-supporting system and good service, an initial set of rapid transit routes which will serve all parts of the City and which will lie led by transfer from a network of surface lines leading through and from the less densely settled districts of the City. SUBTACI AND iMTUtmBAN LiNES The utiliiation of surface lines as feeders by transfer to the proposed rapid transit Imcs is fully developed, and the running of the interurban cars oirer the rapid transit lines into the heart of the C% is shown as a means loth of rdicirmg street congestion and improving the running time of these cats. CHAPTER HI— BASIS OF UNIFIED OPERATION Commencing on page 51 and extending to page 56 is a discussion in which there are pointed out the advantages to the public of a unified system of surface and npd transit lines. The convenience of being able for one fate to use both rapid transit and surface lines, by free transfer throughout the City, is obvious, as well as the time saved by such use of the system. The Rats of Faib Snoiiia Be BIadb Dmemamt UroH THE Cost of the Ssbvice In Boston, on the unified surface, elevated and stibway system, under rigid public service regulation, one dollar of revenue in 1897 was received upon $2.96 invested, while in 19 16 this investment had increased to $6.39 for one dollar of annual revenue. With a fixed fiire cent fare the mevitaMe ultimate embarrassment of the company is obvious. In the plan submitted in this Report it is pr(^x>sed to make possible, under Commission regulation, a change in fare with change in cost of service. Tlie limiting conditions are to be quality and quantity of service, the actual cost of operation, and a return on the investment, such as will secme the necessary capital for ^ under- taidiifr. System to be Self-Supfokting The conditimi of maintaining, out of earnings, an adequate return on the investment over and above operating expenses, em- bodies the essential requirements of a self-supporting transportation system, as proposed herein. Neither Detroit nor any other similar city can hope to secure the large amounts of capital necessary for the initial construction DIGEST OF REPORT 7 period of a modern rapid transit system and to pay the fiKCd chai^;es on such expenditures out of a fare bdow five cents. The plan here laid out is estimated to be self-supporting on an average fare of five cents, with free transfers throughout the thirty year period up to 1950. This figure of five cents is used, not to indicate a fixed fare, but quite the contrary. * * * it is proposed that this question of fare be placed under the control of the Street Railway Commission and the fare based upon the cost of the service. CHAPTER IV— FINANCIAL PLAN The financial plan is pointed out as essential to the creation of a rapid transit system for the City. The costs of modem rapid transit lines have become so high as to make financing of these projects extremdy difiicult Unless great care is taken in protecting both the capital invested and the return on the same, the investing public caamot be induced to place their money in tracticm enterprises. The absolute necessity of an increase of fare over that at present in effect on the street car system in Detroit, in order to support the ])roposed rapid transit system, is clearly seen. The enormous increase in investment and fixed charges necessary for this higher class of transportation facilities is indi- cated in the case of the Woodward avenue rapid transit line, by the following figures which are given to illustrate the relative construction costs and the annual interest charges on the existing surface car line as comi>ared with a proposed elevated or subway line. Woodwavd Avenue Construction Cort Annual Interest Charges at 6 per cent 1 625,000 6^,000 $ 37,500 300.000 It will be seen, therefore, that a two track elevated system of the improved type discussed in this Report would cost eight (8) times and the subway twenty- four (24) times as much as the exist- ing surface car line. It must be remembered, furthermore, that the fixed charges on this new investment are an additional burden over and above that carried by the existing system, for we afe here discus- sing a unified transportation system, rapid transit and surface, which shall be sdf-supporting. Assuming that the present city surface line ^stem represents an investment of $30,000,000. it is obvious that a Woodward avenue subway would increase the fixed charges 50 per cent on the combined system. The addition of the first crosstown t REPORT ON A RAPID TRANSIT SYSTEM FOR DETROIT npid transit line, togctlier with the necessary extensiofis ol surface lines and rapid transit and surface line efpipmcnt, as proposed herciii, would mote llian double the fixed charges. Comparison of Cost and Fixed Charges on Transit System Without AND With Rapid Transit Interest at 6 per cent A Present D. U. R. dty surface Unn anil vpa^moA $80,000,000 timooo Item A, with Woodward awmw wabmy and elevated, and equipment 51,000,000 3,060,000 C Item B, witii an eaik and wok mibmmy and devated, and eqnipnwnt 08,00(^000 4J0BM0O D Item C, with surface line extensions to facilitate transfers between rapid transit and surface lines 75,500,000 4,530,000 The City lines of the existing D. U. R. system, under their pres- ent rate of fare (six, seven and eight tickets for 25 cents), do not produce a revalue sufficient to pay more than a very moderate return on the loregoins^ valuation of $30,000,000, even with the heavily loaded street car service as at present given. The possibility of maintaining the present rate of fare is shown to be due to the constantly increasing number of total passengers per car mile with an equally steady falling off in the speed on practically every line in the cky as shown by the operating statistics of this system m page 64 and graphiadly on dii^rram page 65. The following anangements are proposed as necessary to the successful financing of the unified transportation system. A. A partnership to be created between the City and a company formed to talie over the surface car lines of the D. U. R. within the City limits. B. The City to build and own the rapid transit lines and the Company to huild the surface line extensions and supply the equipment for the entire system. Toward such a partnersiiip, the City will contribute the funds necessary to build the rapid transit lines, whose cost is kept within the legal two per cent ddit limit, and whidi structures thus built it is to own. St^isequent rapid transit construction is to be financed by the reinvestment in the new structures of the City's share in the sur- plus from operation. These accumulated sums will supply the bulk of the new funds for rapid transit construction and keep the bond issue well within the two per cent dcht limit. C. The new Company to operate the unified system under a terminable license until the system is talcen over by the City under the terms of the part- ncfsliip' agrecfoent D. The Company to supply and finance the surface lines and extensions and all cquipiiiait. DIGEST OF REPORT 9 The Company will contribute the existing city street car system at a reasonable valuation as of the date of consolidation, and will furnish the capital for all the equipment of the rapid transit and surface lines and for all extensions of the street car system. Tl^e val- uation assumed for the street railway system in 19 17 is $30,000,000. £. Only actual interest rate on City and coo^any funds alk>wed. Upon the capital invested by each partner they are to receive from the revenues the rate of interest, which they respectively must pay to secure their share of the required capital. In cal- culating the financial tables it was assumed that the interest rate upon the capital invested i)y the company will l)e not over six per cent All securities are to be issued only upon approval by the Street Railway Commis^oners as to amouat, price and rate of uiterest. A sinking fund to retire the bonds of both City and oon^any in sixty years is also pro\'ided. The equity in the property, repre- sented by the bonds retired tlurough the operati(Mi of the sinking fund is to revert to the City. F. The surplus earnings to be divided equally between City and Company. The net income of the system, after setting aside the interest charges and the sinking fund, is to be divided equally between the City and the company, provided the company's return does not exceed eight per cent on its investment. The City's share in the net dtvisihle surplus is to be subject to the paymeitt of an agreed mini- mum to Uie conpai^. G. The whole system to be subject to purchase by the City at a given price. A purchase price is to be set up for the entire system which shall consist of the City's outetanding securities, plus the value of the sur- fs^ car lines at the time of the consolidation, plus such actual addi- tions as are made from time to time by the company, reckoned at par value of the securities approved by the commissioners to cover these last two items, less those retired through the sinking fund. Com- mon stock IsstMd by the company is to have no par value and is not to be included in the purchase price. At the purchase prict thus fixed, less the City's outstanding traction bonds, the City may on due notice take over the property at any time. H. Ownership of property acquired by the City from its share in the earnings. It is shown, that by the working of the stiddng fund provision and the reinvestments of the Gty*s share in the net divisible surplus, the ownership of the p rop e rt y will pass atitomatically to tiw Qty. The proposal is made 10 REPORT ON A RAPID TRANSIT SYSTEM FOR DETROIT that, as the txxids of the company are amortized and retired, fhe equity rep- resented by these bonds becomes the property of the Oty. In this manner it is shown that by 1930 the City could acquire, free of debt, the entire system, upon which had been cacpended $78,882,000, by the payment of $65,561,000. By 1940 the entire system would rq)resent an investment under the proposed building program of $114,858,000 and this system the City could aq|uire, free of debt, for $71,760,000. By the end of the estimated period, 1950, the building program is shown to reqUBie the investment of $156,134,000. The system at this date could then be taken over by the City, free of debt, at a pur- chase price of $75,435,000, towards which there would then be accumulated a traction fund in the hands of the City of $25,642,000. By the use of tiiis traction fund, only $50,000,000 additional cash would be required to oxnplete the City's ownership of the $156,134,000 property. A series of tables, pages 76 to 85, show in detail, the estimated expen- ditures for investment in the proposed unified traction system, the capitaliza- tion of the funds required by the City and by the company, the estimated gross operating revenue and operating income, the interest and sinking fund charges, and the distribution of the net divisible surplus between the City and tilt company. The net divisible surplus is shared equally by the City and by the company, with the limitation, however, that the company's total income, inteiest phis surplus, shall not be more than eight per cent nor less than six per cent on its outstanding securities. Charts on pages 86, 87, 88 give in graphic form the same informatton as is aliown in the finaiidal tallies. On chart, page 87, the division of the outstanding investment between the City and the company shows the steady increase in ownership of the system by the City and the decrease of the company ownership. This use of the sinking fund as a joint means of protecting the bond issues and simui- taneously acquiring ownership by the City, is particularly to be noted. Chart, page 88, shows the sulxlivision of the gross operating revenue into operating expenses, interest charges, sinking funds, and the final division of the net surplus between the City and the company. The steady growth of the City's return is here dearly exhibited. FoUowtng this detailed picscntation of the actual working out of the pivposcd and racommciMicd financial plan, an analysis is submitted of three aitcmative plins in which the difikulty, and in some cases, the unpossibility of acpaate ownership of competing systems or immediate municipal owncr- ilip of the entire system is pomted out DIGEST OF REPORT 11 CHAPTER V— CONCLUSIONS AND RECOMMENDATIONS In this chapter the conclusions derived from the analysis of the existing and the indicated future traffic situation are summarized. These conclusicms definitdy point toward the necessity of immediately adc^ing a rapid transit policy 1^ the City of Detroit upon the prindple of creating a self-supporting, unified system of progressively constructed rapid transit and surface lines. With the City's finandal co-operation, such a system can be built and <^>erated to the satisfaction of the public. Strict commission control will secure the best service at the lowest cost The needed facilities for high ^»eed lines and adequate service throughout the combined sySbem camiot be financed without an increase of the fare above that now charged for surface car transportation. In the reocttnmendatiotts, the full text of which is found on pages 92 to 95 a partnership ag r ea n e n t between the City of Detroit and a Company formed to take over the dty lines of the DetrcHt United Railway is pointed out as the best means of obtaining a permanent sdutier in the 2 — 3 mile 7,f>ne and previous to that date the inner i — 2 mile zone was the greatest in total popu- lation. From both the diagrams it is readily seen that the heaviest growth in 1916 was in the 2 — 3 mile zcine and the density of p« )])ulriti( m. which prior to 1916 was greatest within a distance of one mile of the City Hall, is now at least a mile further out. This fact accounts to a great extent for the unprece- dented growth of the street car traffic which occurred between the years 19 13 and 1916. Area of Detroit On page 20 is shown a map of the area of Eletmit at different pericKh. The growth of the City area does not necessarily bear any relation to the growth of population, as the additions are usually made in convenient subdi- visions for various reasons; but in general the Gty is seen to have spread out\vard quite uniformly, north, east, and west, the greatest extension having been toward the north. Woodward avenue throughout has remained very centrally located as the north and south axis of the City. The area of the City in 1900 was 28.34 square miles, in 1910 it was 40.79 square miles and in 191 7 it grew to 80.67 square miles. Our estimate (^f the area necessary lor the comfortable housing of a population of two million jieople is 1 55 square miles. City's Size Justifies Rapid Transit The necessity for ra])i(l transit in a city does not necessarily commence coincident with any particular population. The density of population, resi- dential location, and distance from points of occupation, as well as physical features of the City area may be controlling factors. It is interesting to note that Boston commenced its rapid transit program when its population rcachetl approximately 830,000. The initial elevated railroad construction, the only form of rapid transit in Chicago, was commenced when the city was sliglitly over the 1,000,000 mark and Philadelphia's first rapid transit line was startecf when the city had approximately 1400,000 population. If dependence can be placed upon the indications of the past twenty years, 5 SSOMI acoS SXHOI3H^6 UIV13 XS lf|l|||l|iUJ/ 9 lit if ii/ o (is? GENERAL BASIS OF REPORT 21 Detroit's future growth to a city uf 1,500,000 or 2,000,000 people is perfectly reasonable to anticipate. Detroit in the matter of size has therefore reached the stage where other cities entered upon their rapid transit devdc^iment. The transit facilities of a city are so intimately connected with its com- mercial success and steady development that it is hardly to be conceived that an active manufacturing city, lilee Detroit, could grow to anything like the 1,500,000 or 2,000,000 mark without net^sarily and simultaneously develqi- ing a rapid transit system. Built on a practically level plain, with no real physical obstrnctions to city extension, the inevitable character of Detroit's growth must be towards resi- dence districts of relatively low population density, detached bouses of the one and two-family type predominatino-. A population, therefore, of over 1. 000. 000 people distributed at about 20 per acre involves a city area of about 100 sf|uare miles and the necessity of reg^ularly hauling many passengers eight to ten miles. With ordinary electric street car service, this means a ride of about one hour. This is the generally recognized limit within which daily trips must be kept to be satisfactory to those making habitual use of such a line. Detroit, if it has not already, will within the next few years reach just such conditions. !> rattle utowtn The traffic growth for the City lines is not obtainable in the early periods. Hie foHowing table shows the actual and estimated passenger trafiic smce 1904, and diagram, page 22, indicates its rapid growth in prc^rticm to the population increase. Actual and Estimated Paaaeiiger Traffic Passengers Revenue Rides per Capita Increase Rides per Capita per ABRimi Year Total Revenue 1!KU 11»10 280.190,216 78349,220 141,090y525 248 282 am 5.68 19J0O 1914 me W17 3 1 0,0] 0,1 04 417,780,244 440,544,836 21!»,(KK>,(V)6 292,043,741 315.48M78 •m 361 6.00* ll.d0 6.00 im im 1940 518^000^ 70«,000,0(K) «.M>4,0(,'^M1<«> 370,000,000 907^)00,000 650,000,000 370 3t«) 3.00 1.00 1.00 urn 1,11(MKN>,CIU«» KOC»,(IOO,een shorter than was then anticipated. The introl 37,U3,2!to 72,000,(KK> 61,000,000 51,(KN,),(K)0 33,(KXt,(Ni0 52.0 3L0 ♦ 37.0 3L4 It will be seen that Woodward avenue has not 2,28.2 Halstead street, Chicago Rfevated Rniwajrt, (3ucago Elevated Railways, Manhattan and Bronx, M. Y. . Elevated Railways, Brooklyn Huclson*and Manhattan Tubes N. Y SiAway, New Yoric • ioi« 3,O40,«1O 3,447,21K) 3,230,(KIO l,2!»r,,000 3,673.000 6.2 6.6 lU The Woodward avenue line therefore carried in 191 7 a denser traffic per mile of trade than the heaviest rapid transit lines in this country with the single exceptkm of the New York subway in 19 16. With the added trackage of the year 1917, the New York subway figure is considerably lower than Woodward avenne in 1917. 2S REPORT C»ll A RAPID TRANMT SYSTBli FOR DETROIT Woodward avenue is also seen to have in 1917 more than twice the density of traffic of the Michigan avenue and also twice that of the Jefferson avenue line. The density of traffic on Woodward avenue is also 44 per cent heavier than Halstcad street, the heaviest street car line in the city of Chicago, in fact as far as we are able to ascertain, there is no single line of surface cars at present operating over a distance of seven or eight miles that carries is heavy a traffic as this Detroit line. There are heavier lines for a few blocks in a number of cities, which, due to the convergence and uniting of several lines upon a single thoroughfare, carry the combined traffic of widely divergent routes, but Wootlward avenue, on the contrary, is a line witliout converging branches. The entire traffic is hauled over two tracks, the passengers either originating along the line or reaching it by transfer from intersecting lines. Tramler Traffic On account of the extensive transfer privileges available to passengers 6n the existing street railway system a knowledge of how these passengers now find it convenient to utilize these transfer facilities is important, as a transfer is contemplated between the surface and proposed rapid transit lines. It has been found in actual practice that where time can be saved a passenger will transfer from the surface to the rapid transit line and vice versa if the transfer arrangements are convenient A transfer count was made on all the lines of the D. U. R. surface car sys- tem in the City of Detroit covering the twenty-four hour period of June 27, 1917. This showed that transfers were issued and used in a number equal to 39wi per cent of the revenue passengers. There were 864,303 revenue passengers who presented tickets or cash for their initial ride. Of these, 275,957 transferred to another line and 62,077 of these latter made a second transfer. This means that 338,034 transfer rides were made during the day by the 8644 84,9^ used transfers. The Michigan avenue ine carrying the third laigest transfer tiustness g^ve to or received transfers from 51 per 'Oent of its total passengers. Thft diagrams, page 29, show gn^ically the rdative number of transfer passengers carried on each line tn the Oty and the number of tnuisler pas- sengers per mile of wngle trade. Cimsideration of the lines susceptible of devefopment into rapid transit routes is all that is here necessary. The follow- iflf shows the transfer chaiacteristics of these lines: IVansf er Passengers, Twenty-four Hour Check, on Four Heaviest Lines Line Total TfMwfien Transfers per Mile of Single Track NJWmMi ............ '■Pin* ,,..,..»...••» UfiU 6700 3U0 siao mo In transfer passengers Woodward avenue is again seen to have the great- est number of any line in the City and also the greatest nnndier per mik of sinfie track. This line also receives transfer passengers in oonsiderahte mnii- bers from more lines than any other sii^ tine in the City. This shows that the Woodward avenue line serves the whole City area more nearly than any other. Of the 189,736 daily passengers riding on Woodward avenue cart 46.6 per cent transfer either to or from other lines and of these 18 per cent., or 15,547 passengers, make a second transfer to reach remote parts of the City. Following the individual groups it was found that practically all resi- dency ii|tric^ of the City contribute their quota to this line. A rapid transit line on this main thoroughfare will be giving half of its service to passengers not resident on this line. The distribution of the transfer traffic along Woodward avenue is also OBNBSAL BASIS OF RBPORT 31 important Of the total of 88,495 transfer passei^iers to or from Woodward avenue 57,817, or 65.3 per cent, are handled between State street and Jeffer- son avenue or what may be termed the central district of the City. The next largest transfer is at the Crosstown line, where 16,538, or 18.7 per cent, were handled, while the Grand Belt line handles 11,133 or 12.6 per cent, and the Victor Junction line 3,007, or 3.4 per cent. The predominating importance of the transfer at the center of the City is therefore obvious. On the other hand it is found that the three transfer lines, the Crosstown, Grand Belt and Victor handled 20,859 passengers, or 67.8 per cent, of their total Woodward transfers to or from points north on Woodward avenue. The full details of this transfer count are included in Appendix I and are shown graphically in diagrams, pages, 100, loi and 102. Bsthnated Rapid Transit Traffic Considering the growth of the past ten years it is reasonable to estimate a passenger traffic on the Woodward avenue line by the year 1922 of 85,000,000 total passengers. This estimate is based upon the assumption of free transfers between this line and the intersecting car lines and the building of a rapid transit line along this street to be in oi>eration at about this date. Based upon estimates of time saving through the use of the rapid transit line by the long haul riders, it is quite probable that 50,000,000 of the total pas- sengers would use the rapid transit trains if the same fare and free transfer were offered. Such a division of the total traffic will at once relieve the over- crowded condition of the surface lines and make possible in^yrovement in both running time and service. An analysis of the 1916 traffic of five of die heaviest lines in the City of Detroit has been made to find the proportion of their traffic tributary to a rapid transit line similarly located. The figures shown in the foUowing table are somewhat tow due to the omission of any allowance for the diversion of traffic from parallel lines^ whidi traffic would be attracted by the higher speed of the adjacoit rapid transit line. This item has been omitted due to the great difficulty of predicting its vohmw and it is noted here as an added safety factor. By assuming, in estimates of future traffic, that the rapid transit passen- gers will bear the same proportion to the total passengers as is shown in the foregoing division of existing traffic on the surface lines, a very conservative position is taken. The fact is that during the period of construction of the rapid transit lines, a considerable increase in long haul riders will be experi- enced in anticipation of the higher speed service. iBPOvr ON A mmB rmmm tmsii warn wmtum m mi i Mrtu i BMIoii nf fniffic for 1916 Betiveai Smfact and Rifiid Name of Line Total PassenMSS on Pieeent Car No. of Passengers Per cent Avenge Haul Present Lines Rapid Transit Woodward Michigan-Gratiot . . . Icffersrai^^jnafl River . Port CranConni > 68,063,639 60,261,462 61,237,266 32,756,003 31,720,000 2}),506,a)0 26,322,000 16.504,000 46.7 4!>.6 51.2 47.6 ^4 2.81 3.11 3.26 2.81 3.86 4.22 4.50 3.72 He origin and destination of the passengers was determiiied on liasit of iie If 14 traiic count. Tlie per cent of total passengers tributary to the rapid transit tine was determined by the method of time saving, the speed of the street cars and rapid transit being taken at nine miles and sixteen miles per hour respectivdy. It is seen fnnn the foregoing tabulation, that while the total number of passengers on Woodward avenue is in excess of the other lines, the length of haul is not so great. The principal deciding factors in favor of Wootlward avenue as the initial rapid transit line is the density of traffic, the impossibility of adequate service on the existing street car system and the continued increas- ing rate of growth on this line. In the financial plan it has been necessary to assume some order in which the subsequent lines are to be built. After the initial step the program has been arranged in such a manner as to allow the changing of this order if neces- sary. The sequence in order of construction is based upon the general assump- tion, that the city will continue tojmK in such a manner tfiat the present proportion of the trafiic on tlMlll^^ lines wiU. be maintained. Fdlowing this line of reasoning and referring to the table, the Michigan- Gratiot lipid transit line was selected as the second step in the program. In this connection it is pointed out that the tracks of the Michigan-Gratiot surface line also carry a number of other car lines. This traffic, which does not appear in tlie foregoing taMe, is considerable and is hauled for a distance of several miles on Mldngan and Gratiot avenue% thetdby increasmg the importance of tliin' route. A glance at the diagram on page 48 shows that these two first lines. Woodward and Michigan-Gratiot, form rapid transit arteries at right angles m one another, one north and south akmg the central axis of the City ( Wood- ward avenue), ^ other east and west over the next heaviest traffic line and traversing the most heavily settled residential districts. A furilier discnision of this subject is given in Chapter II. QBNBRAL BASIS OF REPORT 33 PuUk Demand for Service It is of course impossible to say what number o{ passengers a certain car line can carry. That is largely a function of the quality of service which the operating ctunpany can provide at the prevailing fare, and of how much incon- venienoe the passengers will stand in crowding and low speed. It also depends i^on the physical limitations of the traffic, such as vdiide and pedestrian interference, frequency of stc^, etc For »milar reascms, the carrying capacity of rapid transit lines cannot be aocuratdy determined. In New Yoric the Interix>ro Subway was designed for uid expected to carry 400,000 passengers per day, but by 19 12 it was canying 830^000 daily, and the condition of crowding during rush hours was then considered intolerabie. Tins oonditkm existed notwithstanding the lengtiiening of trains and platforms and the reduction of the headway, until it was unpracticable to give more aecoomiodatkm. la 1917 the average daily traffic amounted to 1,130,000 passengers with a corresponding increase in congestion, direcdy due to the loi^ delay In pioviding for additional rapid transit lines. The history of rapid transit construction in large cities in recent years has been a succession of postponemoits and delays in deciding upon a plan and actually starting construction work. The public have usually failed to realize the long period required to plan and build modern subway lines and as a result years of discomfort and inadequate service have been «iduied, which might have been avoided, had a more far sighted course been pursued. In order to use to advantage the experience gained in other cities an immediate decision of entering upon the rapid transit policy in Detroit should be made. The initial plan should be based on the needs of a population of from 1,300,000 to 1,500,000 to which the city is expected to grow within the next 15 years. Conversely upon the decision to build or not to build, this increase will partly depend. It is a well recognized fact that transit facilities, even in the building period, stimulate growth in anticipation of the service to be later supplied. It must be kept in mind, that were the plans herein proposed approved by the Commissioners and submitted to referendum vote in April, 1918, and then favorably acted upon, the preparation of plans, letting of contracts and actual construction of a subway on \\'^oodward avenue would not give actual service before the auttmin of 192 1 or early in 1922, and other lines at an even later date. It is not intended here to urge the commencement of actual construction of subwajrs in Detroit at such a time as the present, when all financial an(' construction resources arc under the strain of a great war. It is intended, however, to point out that a considerable number of years must necessarily M SBFOST ON A SAPID TKANSIT SY8TB1I FOR DETROIT dapie iMtwecn a dedskn to Imild and €lie c om mcncciiicnt of succe^fiil oper- ation, and tliat of tMs period much of the time must be eni{doyed in the wofk- ini: out of the details of afreements, ^edfications and fltam, whidi would not iravdve csi^ienditurcs of laiige amounts of money and which, when ccxnpleted, would make immediate construction possiUe upon ^ resumption of noraia! conditiooSa In order to discuss the situation in a dear and understandable manner it # has been necessary to assume a definite program for the construction of suc- cessive rapid transit lines, keeping step with the requirements of the estimated growth in population, thus fixing for these periods specific costs of construc- tion and operation. By assuming the earhest possible dates, regardless of war conditions, it is thought that if a favorable transportation and a feasible financial plan can be developed, postponement to any later date will only tend to increase both the necessity for the transit facilities and the assurance of suffi- cient earnings to support them. iPiiitiiiiMwy Physidl CrWid'itiotMt ' To summarize the foregoing discussion of the physical requirements of the Qly it may be said that : (a) Detroit's growth in population and area has now continued for such a period of years and through so many changes in commercial, political and economic conditions, that its continued future development to a city of one and one^half to two million population is a reasonable prediction. The natural fears of some at the time of our previous study of the situation, ( 1914) , tiat iie city was eicpcrieiicinif an unhe^tfay boom due to tenqx>rary prosperity in the automobile business of the country, seem fully diiproved by the sulise- '^iisnt developments* The present decreast in the D. U. R. passenger earnings are indicative of the period of re^adjustment, through which Detroit's manufacturing plants arc passing due to present war conditions. This decrease appears to be teBi> porary and while it may be accompanied by a slowing up in population growth or even actual loss, the resumption of growth at a rate, such as herein shown, is, we believe, to be confidently expected due to the financial straigdi and diversity of the City's industries (b) The density of traffic on its heaviest surface car lines is in eiccess, I notably on Woodward avenue, of corresponding conditions in otiier dties I vilcfe ca^d transit has been considered a necessaiy and legitim / (c) The coogestiott of surface car traffic at the center of tiie City even as relieved by rerouting is only tcn^orarily reduced, and any such growth of the City, as now seems certain, will in a lew years cause a recturrence really bad cioiiditiimit« GSNBRAIr BASIS OF RSPORT 3S (d) The maximum capacity of the Woodward avenue surfoce line is practically reached unless slower speed and furdier crowding is considered acceptable to the public Similar conditkms ai« developing on other lines. (e) The use of additional paralld street car lines on streets adjacent to Woodward avenue or other lines are of doubtful advantage on account of the dense automobile traffic on these thoroughfares, and the repeated expe- rience in Detroit and other cities of the persistent tendency of passenger traffic to cling to the main business streets and not to utilize added service on parallel lines. Even if such lines were built and patronized, it is physically impossible to carry them to the general ddtvery district ^ account of the peculiar location of the streets in this area. (f) All the traffic and physical conditions point to the teasonableness of developing a definite plan for rapid transit at this time. The traffic char- acteristics as to distribution of passengers, their districts of origin and desti- nation have developed quite clearly, particularly in the past four or five years, so that the rapid transit needs of the immediate future at least can be seen. The question of how soon construction should be commenced is not sus- ceptible of demonstration as an engineering problem. It is purely a matter of public policy. We can only analyze the facts as we have found them, and point out the conditions as we see them and recommend means of rdief for present needs and proper provisions for future requirements. It is within the province of this Report and our experience to point out clearly the financial difficulties involved in building a modern raj^id transit system in a large city and the cost of supporting the service. For this reason the following discussion of the proposed physical or construction program is folkmed by a chapter on the financial plan. I CHAPTER 11 RAPID TRANSIT PLAN AND CONSTRUCTION PROGRAM The rapid transit requirements of Detroit, based upon general considera- tions, have been discussed already. In the analysis of the present traflk con- ditions, the influence of the density of traffic, len.^th of haul and volume of transfer, have been ix)inted out as important among the deciding factors in selecting the most desirable routes. In the following discussion the location of the most necessary high speed routes will I)e approached from different view points, i. e., from the angle of the present and future distribution of the population, and from the origin and destination of the riding public. R««id«itial Distribiitiofi of Population by Four Equal City Areas The diagram on page 36 shows the distribution of population in the City in four divisions of nearly equal area, formed by Worxlward avenue as the north and south dividing line, and by Buchanan and Canfield avenue as the east and west dividing line. The shaded rectangles indicate the population in these four divisions of the City, also the density and increase of the ix)pulation for the years 1910, 1913, 1916. The remarkable uniformity in the increase east and west of Woodward avenue from 1910 to 1916 and the relatively uniform distribution of the population on either side of this axis is noteworthy Here then is clearly shown the residential location in four divisions of the total population of Detroit. This means the general location in four broad divisions of the origin and destination, morning and evening, of the City's daily riders. Map I showing the p<^Iation of Detroit by one-half mile squares for the years 1904, 1907, 1910, 1913 and 1916 indicates that in the past three years the heaviest growth has occurred in the northwest part of the City along Grand River and Michigan avenues and in the northeast part of the City, in anrl near Ste. Claire Heights. By taking, however, the period from 1910 to 191^) and combining the increases it is found that a remarkably uniform rate of increase has occurred over the entire City. These increases are grouped very uniformly east and west of W'fxxlward avenue and north and south of the axis of Canfield avenue, as shown on the previously mentioned diagram. The foregoing map also shows that there are an average of over 28,000 people per mile of line resident in a district extending one-half mite OR either side of Woodward avenue for the first four miles north of Grand Circus. Similar districts adjacent to Gratiot avenue, show an average of 25,000 peo- 37 RSPOKT ON A RAPID TRANSIT SY8TB1I VOR DBTROIT pl« per mile of line; along Michigan avenue, 20,000; Fort street, 16,000, and Jefferson avenue, x 1,000 people While it is true that dense residential dis^ tricts do not always produce a proportionate number of passengers, neverthe- less, the foftgoinif relative figures indicate dearly the importance of Wood- ward avenue and the east and west rapid transit line paralleling Michigan and liiatioi 'avenues* Bhupioyiiiciil l^ttribiitioii in Detroit The other termini of the daily trips of rush hour passengers may be seen in general on diagram page 39, stiowing the location of places of employment, factory and business, throughout the City. The circles placed at d^erait pc»nts on this diagram indicate by their area the rdative number of employees in each of these establishments during the summer of 191 7. A tabulation of the larger factories in Detroit, their location and the number of employees is given m Appendix VII, for the years 1914 and 1916. The distribution of these employees, as indicated in our previous report, is very diversified for the individual factories. Nearly all the large factories draw their employees from all parts of the City. A recanvass of some of the principal factories in 1917 compared with our 1914 canvass indicates, as would be expected, the location of a somewhat larger proportion of such employees within walking distance of the factories. The same wide scattering of these factory workers into the various resident districts is still the predominant condition. In addition to these facts there must be considered the known plans for developing employment districts by the location of large factory centres. In this class must be included the tractor factory of the Ford Company to be built at Baby Creek and River Rouge on the westerly outskirts of the City. The building of the Pennsylvania Railroad into this western part of the City will also undoubtedly be a factor in building up residential and business dis- tricts. At the present time the factiny locations are grouped principally along the Grand Trunk, Michigan Central and the Detroit Grand Haven Railroad lines and the river front, the principal increases noted since the 1914 inves- tigation having been along the railroads rather than along the river. The residential population along the river also has shown a decrease, the general tendency being for both populaticm and factory centres to move westward and northward. .BiiMng Activity Shown by City Permits An examination of the building permits for the years 1914, 191 5 and 1916 has been made and charted on map 2. From this the previously noted EXPLJtH/maH msr/uBUTiON orpopuLAnoN 6CAl£ 1 wmmmmmmmm. SOO.CXX) 4CX3.000 500. 00« MAP 1 m RBPORT ON A RAPID TRANSIT SYSTEM POR DBTROIT increase in liie pofmlation of the northwestern part of the City is very appar- ent; also the increase in popolation in the nortlieasterly part of the City just west of Ste. Claire Heights. Median Lines of Population On diagram, page 36, the east and west median line has been drawn in solid hlack. This line indicates that east and west of any point in this line, the same number of people are resident within the City limits. The very close approximation of this line to Woodward avenue is obvious. Another line marked "north and south median line" divides the population north and south of this line into equal parts and crosses Woodward avenue between Ferry and Frederick avenues, about two and one-half miles north of the City Hall. A judicious interpretation of the above facts can be utilized in deciding upon future ra|Md transit lines for the enlarged city. iMMiwwi AvcntKt tne imtuu. ici^Mft icmtif une In our 1914-1915 fqiort, Woodward avenue was pointed out as the most logical and promising location for a ra{nd transit line in Detroit In all the traffic chatacteristics in which it was then apparent, that the Woodward ave- nue line exceeded others in the City, it has since increased in greater propor- tion than any other line. The rapid change of Woodward avenue from a residential to a business street throughout most of its length has been increasingly apparent. This undoubtedly has been a material factor in attracting a dispfoportionate amount of the traffic increase of the City. Taking into consideration the characteristics of the traffic growth pre- viously discussed, the increases in and location of residential districts, as just mentioned, and the trend of factory location, it is seen that Woodward avenue is the heaviest trafficked, the most centrally located and the most rapidly growing thoroughfare in the City, Along its entire length it is becoming more and more a delivery district for passengers on the street itself, and the territory on either side is steadily increasing in population density. In all of lliae characteristics the increases taken as a whole are greater than on any other line. Referring to diagram, page 36* it will be seen that the east and west median line neatly coincides with Woodward avenue, therdij indicating its importance due to central location and as an originating line, while on the other hand, it leads through and directly into the most important business centre of the City. This unique location is one of the strongest features, favor- ing Woodward avenue as the most desirable locatkm for an early high speed line. 4 4 i (I ICAP 2 I HAPID TRANSIT PLAN AND CONSTRUCTION PROORAM 41 This line has, therefore, been selected in the following plan as the initial rapid transit line of the City, to be followed by an east and west line, which should intersect it at or near the centre of the central delivery district. This district is still located along Woodward avenue and the immediately adjacent streets, and extends from the Grand Cirais to the river. Other Rapid Transit Lines On map 3 a jxissible ciit howcviM* nmvc the best method of reaching the district that will undoubtedly grow up along the River Roqge in co nn ectio n , with the Ford tractor plant This same district might, on the other hand, he reached from th^ Micfaigan avenue line. The above routes are the most probable general arteries of travd ak»g which rapid trmit in the future will be justified. The route which at present can, he considered fully warranted is that, ^on Woodward avenue. Types oi Rapid Transit Construction — Subway and Overhead In order to lay out a financially possible system, which may be realized within a reasonable length of time in such a situation as that presented by Detroit, the necessity for low construction cost is obvious. In the heart of the City, where the conjTestion of vehicle and street car traffic and even pedestrian crossing traffic has become very serious, no other srepared from ap- praisals made for the City by the Detroit Real Estate Board without charge. The portion of the rapid transit routes for which estimates of right-of-way were prepared is shown on diagram, page 46. In s<^me cases, however, it will be necessary to occupy, at least for a portion of the way, the center of the wider streets in the outlying districts. Where it may be necessary to locate a rapid transit structure upon the street, the type shown in the accompanying diagram, page 44, is recommended. In this type a central oohmm is pliuxd between the existing surface car tracks the latter bemg spread to allow clearance for the surface cars. Such a struc- ture would oSer the minimum of obstrtietkm to the street and practically no obstruction of light or access to the sidewalks or buildings on streets eighty (80) feet wide or over. A unified system combining the three types of constmctioii, sorfoce, over- head and subway, has been extensively worked out in Boston, where, however, the open type of elevated structure is used. Such a system is also exemplified in Philadelphia and was the basis of the recommendations for a City system in Chicago made by the Chicago Traction and Subway Commission, who reported in January, 191 7. In the dual rapid transit system just nearing completion in New York, elevated structures have been extensivelv introduced for the outlying districts. In fact so enoniious became the costs of this ex- RAPID TRANSIT PI^AN AND CONSTRUCTION PROORAM 4f tended system that the resort to this form of rapid transit Hne was imperative. It is in fact impossible in any other way. than that above outHned, to work out a system that will cover the wide areas of relatively low ])opulation density of the American "Greater Cities." It is believed that in the plans herewith submitted the objectionable features of what is ordinarily known as an "elevated railway" have been reduced to a niinimuni. Plainly stated the question of the type and extent of rapid transit to be built, ultimately depends upon how the first cost is to be met and the interest thereon is to be paid. This is discussed fully untler the financial plan. Conatnictioii Progiam for Initial Period On diagram, page 48, is shown the rapid transit system, which, utider the conditions assumed in the financial plan, could be de\ eloped during the first ten years after a definite policy r^rding the traction problem of the City is decided upon. On this ttiap the heavy broken lines indicate subways or underground construction, while the heavy solid lines indicate overhead rail- ways. The high speed line on Woodward avenue is planned to be built first as far as Manchester avenue, the undergroimd i)ortion extending from Wood- bridge street to north of Grand Boulevard. The short subxvay branches for the crosstown lines could be built next and might be used by certain street car lines for the purpose of relieving the downtown coi^iestion. These subway branches could then be extended for rapid transit and connected to overhead construction in the location and to the extent shown on diagram, page 48, or as far as the financial situation from time to time ma} permit. In this manner it is intended to develop as rapidly as consistent with a self supporting system and good service, an initial set of rapid transit routes which will serve all parts of the City and which will be fed by transfer from a network of surface lines leading through and from the less densely settled districts of the City. Surface Line Extensions The solution of the transit problem of Detroit depends only partly on the construction of a rapid transit system. The surface line system also will have to be developed to supply local traffic within the growing districts and to serve as feeders to the high si>eed lines. It is estimated that for the anticipated population growth and considering the necessary extension of the city limits, an average > early increase in the surface system of alxnit six miles of single track will be needed. ^ On niap 3 a system of street car extensions, designed to serve directly all residential districts as they grow, has been laid out. These extensions are planned to not only carry short haul passengers, but also to supply easy means m mPORT ON A RAPID TRANSIT SYftTSM FOR OBTROIT of reaching the rapid transit lines by free transfers and possibly by devdop- nient of sp«aal transfer stations. ^ / ^ Tht question of the order of construction will have to be decided every year by agitemmt between the Street Railway Commission and the Company, but the ailditions should always be made so as to increase the service, which the surface lines are expected to render as feeders for the rapid transit system. Ilitaturban Lines. Provision is to be made for operating the interurban cars over the rapid transit, overhead and subway, lines. The advantage to both passengers and companies in entering into the heart of the City, avoiding all street congestion, is obvious. This will warrant a considerable investment by the Interurban Companies either in concessions as to the use of their existing surface tracks, as the City limits are extended, or in actual contributions towards the cost of the terminal facilities supplied to them. CHAPTER m BASIS OF UNIFIED OPERATION A Single Unified System of Surface and Rapid Transit Lines Whether Privately or Publicly Ovmed or Operated In most American cities surface lines and rapid transit lines have been developed as independent and competitive systems. A study of the resulting conditions at the present time in these cities shows clearly from the standpoint of the public, the investor, and the railway companies themselves that, could a carefully designed unified system be substituted for the competitive lines built daring the past twenty years, much more desirable results for all con- cerned would now be obtained. The creation of such a unified system, of course, means a monopoly of city transportation, which, in the interest of the pubfic* denunds definite and sktllfial public r^ulation. It has been clearly shown that the continued operation of competitive systems in a dty, in order to be boiefidal to the general public, requires such a rapidly growmg patronage as will allow the business to cany a duplication of investment In oompetittve traction situations the history has been that ultimately one or the odier of the competitors has foiled to receive sufficient return upon his investment to continue the struggle, and either a division of territory has resulted or the competing lines were consolidated and merged into one company. The unnecessary duplications of lines and investment then become apparent, but the lines being built and habitually used by patrons located along them, the latter's interests must be considered. Then follows the usual story of lines not only loaded with duplicated investment but main- taining unnecessary duplication of service, thereby burdening the entire system with an uneconomic operating condition that reacts directly upon the quality and quantity of service that can be rendered to the public. Assuming a self-supporting city transportation svstem. operated under commission supervision, the fact is that the gross revenue to be obtained is limited within quite a narrow margin. The number of riders and the rate of fare cannot be greaUy varied by regulation except that added facilities usually increase the travd. It, therefore, is of the greatest importance to the public not only to see that proper r^;uUition of operation and fares is maintained but also that the c^tal invested is so distributed as to give maximum service lor the money eiqwnded Detroit aft the present time is at the threshold of the rapid transit period and if due heed is paid to the warnings contained in the experience of cities SI St MSPOST ON A BAPID TUUftlT gTSTBll FOR DSTKOIT that have alreaiiy entered this stage in their fievdopnicnt, it should be possible to lay out a system giving the public maximum service with the minimum of expenditure. With only a single surface line system in existence, a gnat opportunity is presented for producing a plan whereby a duplication of invest- ment in rapid transit and street car lines may be avoided and the maximum of service obtained. In a city with the size and physical characteristics of Detroit, the building of an independent rapid transit system competing with the existing surface hnes would be a very doubtful financial venture. On the other hand the development of a rapid transit system as a part of a single unified system for the City presents quite a different and much more favorable situation. Both these points will be clearly brought out in the discussion of the financial plan. thh mmo mmmm froposed rapid transit lines mmm wmmm surpacb car schedules TioM of Jdwaqr Saving by Rai^ TiaiMit To . Vim Street Car 1 Rapid Transit WoCMtwird and MaadMstcr Av«s. Forest . . Wbodivanl . M IDlll. lOwia. CityHaU . . Woodmmt . liada. Woodmeve aad Port. . Woodmnd aad Port . iBilUB. 42 min. 26 min. Jcfcfioa and Allv JIaid' Woodward MidJiAinoa' TSmni. Hiaia. aiaua OlyHaU .... Woodmere and Fort . Fort .... 30 min. 11 min. Jefferson and Alltr RiMd^ SB mill. « OT* UMM. • nnn. Michigan and livemois . . . . City Han Michigan . . flftmtn. 16 ana. Ilmia. Gtmtiot aad BwiMr Mirhtgan 'and Gratiot Maoia. M inia> 20 min. Okftm .... Gratiot . . liaiia. 19 till.'" 9 min. Service Greatly Improved by Unified Opcratioii Besides the financial considerations a much more convcniait service it possible to the public, where a system is maintained with single unified oper- ation giving transfers between snrlMie and rapid transit lines and where surface lines are a^^^jH^I feeders for the high speed trunk lines in the outlying districts. IWKnds to increase the uie of surface cars for short BASIS OF UNIFIED OPERATION 53 haul local business, and the carrying of passengers on the longer trips by trains on the rapid transit system. An automatic division of these two classes of passengers is thus arrived at, resulting in the relief erf the congestion and crowdit^ of surface cars. The greatest benefit to the pubitc, however, is obtained by the very considerable reduction of the time of long distance travd, a few examples of which are shown in the preceding table. A Ski0e Uniionn for the Whole City With Free Transfers Between SuffKe and R^iid Transit Lines is Proposed and Considered Desirable There arc several divergent views as to the proper financial relation of a city transportation system to the public. Without attempting a discussion of this complicated subject, a statement may here be made, that it is at least a thoroughly defensible proposition that the riding public should pay a fare sufficient to support the system which they use and that this service should not be a burden i^on the general taxable property of the city. The plans herein outlined are wofked out upon this basis. The omvenience of a single uniform fare over the entire city is uni\ er- sally recognized. The advantages and justice of such a uniform fare with transfer privileges may be seen by examining the facts developed in our present investigation. Take for instance the operation of a rapid transit system on Woodward avenue as an initial step. Should this be found to require an increase of the present fare throughout the City in order to support the new investment, it would at first sight appear to involve the taxing of the riders in other parts of the City for the benefit of the Woodward avenue passengers. The fact is, however, that only about half of the passengers on Woodward avenue begiti and end their trip on that line while the other half reach \\'oodward avenue by transfer from some intersecting line and l8 per cent of these by two transfers, using two other lines and most of them coming from remote parts of the city. With a rapid transit system, as pro- posed, in the fully develoi)ed system this proportion of people using both systems would be maintained and probably increased. In other words the boiefilS of high speed transportation would be well divided between all dis- tricts of the dty and the utilization of rapid transit by the public generally on particnter lines would be found fairiy evenly divided with those using only surlMse or oidy rapid transit The questkm of a umfonn fare for different lengths of rides and on heavfly ^ffidml and lightly trafficked portions of the same system has been passed upon by some of the public relating bodies, notably the Public Service Commission of Massachusetts, one of the oklest and most conservative bodies of this nature. In their report and order upon the Middlesex & Boston rate m mmmm m a sahb rmam wmmm for dstsoit case, October 28, 1914 (P. S. C. 553), tliey lay down as aound the policy of a flat rate within rcaaonable limits : **OurjM)|mlation cento profit m railway lines mmfyiag into rural sections. This p3ky of a flat rate within reasonable limits which does in effect require short ride I»trons to contribute to the larger cost of the long rides, has been the pohcy of the Commonwealth for many years. It really underlies the fiw-cent fare provision of the Elevated and West End companies m metropolitan Boston." It must be understood tiiat this uniform five-cent fare provision here referred to ^ipiies to the use of surface and elevated lines and universal trans- fers practically over the whole area of the City of Boston. late ol ¥mm mmm Be lladt Dqiendent Upon the Cost of the The use of a fixed fare for a long period of years has been detrimental to the proper development of many city transportation systems and in some cases has greatly delayed the supplying of adequate service. The fixing of a per- manent fare at too high a rate is unjust to the public and at too low a rate must injure th6 paHic by giving them inadequate accommodations. In the first case the system will bra^a subject for ^)eculative investment and in the second case the pnbli4|||||^ 'eiren:tually through poor service, and the conqnny and investors by financial embarras»nent. The ahnost universal use of a five-cent fare for street car systems in large cities throughout the country was initiated during the horse car period or the early electric railway period and often very large apparent profits were at first realiied With the introduction of improved mechanical transporta- tiom, cable, electric, and later elevated and subway systems, the amount of investment in dty transportation has increased out of all proportion to the revenue With the present ^tem of PuWic Service Commission control of accounting and the strict requirements for depredation reserves and sinking funds, the former apparent profits have, in many instances, practically disap- pcarecL In Boston, on the unified surface, elevated and subway system under rigid piiilic service refutation, one dollar of revenue in 1897 was ^ceived i>pm $2.96 mvested, while in 1916 this investment had increased to $6 39 for one dollar of annual revenue. With a fixed five-cent to the inevitable ultimate embarrassment of the company is obvious. In no other line of busi- ness has the price of the commodity produced been fixed and the development of the business and the quality of the output forced to conform without damage to the product, and this condition is at the root of the trouble ex- BASIS OF UNIFIED OPERATION 5S perienced with dty transportation systems botii by the public and the com- panies. In the plan submitted in this R^rt it is proposed to make possible, under Commission regulation, a change in fare with change in cost of tiic service. The limiting conditions are to be the quality and quantity of service, the actual cost of opo-ation and a return on the in v e sUu ent, sudl as will secure the necessary capital for the undertaking. System To Be Self-Supporting The condition of maintaining, out of earnings, an adequate return on the investment over and above operating expenses, embodies the essential requirements of a self-supporting transportation system, as proposed herdn. The entire unified system as herein contemplated is to be built, equipped and financed on the basis of actual cost. If the City wishes at any time to in- crease the rapid transit system beyond the self-supporting limit, as is proposed in Philadelphia and as has been done in New York, it may do so under this plan, as a method of accelerating the building program. In such an event, however, the City must provide for the payment of any additional interest charges, if so incurred, by levying taxes. The plan here kiid out is estimated to be sdf-supporting on an average fare of five cents, with free transfers throughout tiie thirty year period up to 1950. This figure of five cents is used, not to indicate a fixed fare, but quite the contrary. The calculation of the elaborate earning tables with changeable rates of fare, introduced so many dements of pure conjecture that the attempt to use such changeable fare was abandoned. The ^ that rapid transit service by subway and elevated is a higher dass and necessarily more expensive method of travel must be dearly understood. In New York the original subway system, taking the cream of the city's rapid transit business, has been profitable, but in no other city have even the less costly elevated lines been successful business ventures. In New York the necessary recent additions to the subway system have l)een possible only by the city guarantee- ing the interest return on the investment and bdng prepared to pay deficits out of annual taxes. Neither Detroit nor any other similar city can hope to secure the large amounts of capital necessary for the initial construction period of a modern rapid transit system, and to pay the fixed charges on such expenditures out of a fare below five cents. If it is decided that the present fare is the maximum contribution which the traveling public is willing to make towards the service they desire to dbtain, then it must be dearly understood that the improve- ment in transportation must be paid for out of general taxation, as we find it fmpossible to design any adequate system whkh will be sdf-supporting durii^ the devdopment period at less than an average five-cent rate of fare. m REPORT ON A RAPID TRANSIT SYSTEM FOR DETROIT But wliat conditions may arise in the future or what density of traffic may be developed to improve the earning conditions and possibly allow of a reduc- tion of this fare cannot safely he predicted. In the following chapter on the inandal plan the question of fare is further discussed from the point of view off the cost of the physical constructioii. In the conclusions and fccommcndations it is proposed that this question of fare be placed under the control of the Street Railway Commission and the fare based upon the cost of Che service. CHAPTER IV FINANCIAL PLAN General A definite financial plan is qtiite as necessary for the successful develop- ment of a rapid transit system from the City*s standpoint as is a physical building prog-ram. If a judicious iuxestnicnt of city money is to be secured, a joint plan for division of the financial burdens between the City and the existing Com- pany must be devised and agreed upon in advance. A i)lan of this nature, involving the sale of large bond issues by both City and Company, must be worked out on lines which experience has shown control the successful sale of such securities to the general public. The financial plan hereinafter submitted starts on January i, 1922, as being the date when the first rapid transit line is assumed to be put in operation. The underlying idea of the financial plan is a unified system of rapid transit and surface lines with a uniform fare over the whole area of the city and free transfers between rapid transit and surface lines. The City will build the physical structures of the rapid transit lines with money raised on its own credit or with its own cash. The successively necessary surface line extensions as well as all the e(|uii.nient necessary t<^ ojicrate b >th the rapid transit lines and the surface lines are to be financed and furnished by the Company. A partnership arrangement is thus created l)ctween the Citv and Com- pany, the City supplying its credit ior reduction of interest charges, and the Company its plant and organization. All returns upon capital are to be limited to bonafide investments and only at such rates as are necessary to secure new capital as needed; the net divisible surplus to be equally divided between the City and Company, and all to be administered under complete Commission regulation. The establishment of a comprehensive financial plan necessitates the forecasting of three basic items within the period covered by the plan : 1. The probable gross operating revenue of the proposed unified system. 2. The operating ratio to be applied in pro\ iding for the payment of operating expenses, maintenance, depreciation and taxes. The gross operating revenue, less these payments, will give the net <^»erating income. 57 St KSPOKT ON ▲ KAPID TBAMSIT tYlTXIl fOK DBTBOIT 3. The method of financing: to be fallowed, both as to the seciiring^ of the ncceaaary capital and as to the division of the operating mrome into intcftst* stnldiur fund and net divisible siuplus, on a fair between tbe City and the Company. 1. GROSS OPERATING REVENUES The gross operating revenues of the City transportation system, as here used, are those derived from fares paid by the passengers carried, no estimate having l)een attempted of the minor sources of income. It is evident tliat the passenger re\ enue is dependent upon the population of the City, Upon ^ riding habit and upon the fare. FiiliiuaiicHi The forecasting of the population growth of any city or c 'mmunity is ciicaedinfiy diiicalt on account of the very large number of variable factors cnterii^ into the problem. There are no two cities in the country, which have grown in an entirely similar way even if at certain time-points their pofMilation happened tube the same. For instance, the popidations of Chicago in i88o^ of Philaddphia in i860 and of Manhattan in 1850 were practically the same as tiie population of Detroit in 191a In the subsequent thirty year period, however, Chicago grew from about 553iOOO to about 2,185,000; Philadelphia from about 585,000 to about 1,046^000, and Manhattan from 515,000 to 1, 164,001^ as shown on diagram, page 59. It is obvious from the foregoing that the case of every city is an individual one and thU tflfCCt deductions based upon identity of size alone, regardless of period and of other governing conditions have very little value in estimating the future population of another city. The geographical location, the importance of a city as a terminal or transit point, the business conditions prevailing, the national policies of the country and a number of other considerations have much greater bearing upon the populatbn growth of a city than the natural causes, i. e.. the birth and death rate This makes it impossible to submit the problem to a strict mathematical analysis. An analytical method, however, has been worked out as a guide in the prediction made in this report. The details of this method are submitted in the Appendix. The results of the analytical inves- tigation are plotted on the diagram in dotted lines, showing an estimated population of Detroit in 1930 of 1,380,000; in 1940 of 1,740,000, and in 1950 of 2,170,00a That part of the Detroit population curve, which is plotted from known data ( 1910-1916) shows practically the same slqnj as the Chicago curve from 1880 to 1890, but the estimated portion of the Detroit curve presents a decidedly flatter slope than the curve of Chicago's actual growth. This is reasonable, considering that the geographical location of Detroit is not as 00 RBPOBT ON A RAPID TRANSIT SYSTEM FOR DETROIT favorable as that of Chicago, which latter city is the natural railroad center of the whole country, and within the period of its rapid rate of growth was the eastern outlet of the then developing western half of the United States. Under normal conditions we would not hesitate to accept the theoretical curve as the ha<\< ot a conservative estimate of the future growth of Detroit, but having in mind the inevitable reaction upon industrial conditions of the coming termination of the war and the ahnost certain reduction in immigra- tion and even possible emijjratii n from this country, we have set the limit of the population in 1950 considerably lower than this theoretical cin ve would show, namely, at 2,000,000 people, in order tn be thoroughly conservative we have assumed that the growth to this j.ooo.ock) li«,aire will, from 1920, be in equal yearly increments of 33,000 people, assuming that the poiiulation in 1920 will reach the 1,000,000 mark. This latter figure was prechcted in our previous report and we confidently expect it will be realized. Ridiaig Mabk The riding habit is very conveniently expressed in terms of revenue rides per capita per annum, and it naturally grows with the size and popu- lation of the city and the facilities for transportation. This growth, however, is not in the same ratio as the growth of population and being obviously limited by an ultimate maximum, it becomes very slaw when the riding habit approximates this limit The present riding habit in Detroit is already ex- tremely liigh, as shown on diagram, page 61, which gives the revenue rides per capita in several other cities of ai)i)roximately the same size. The limit of the riding habit should not be set higher than 400 rides per capita in a city like Detroit, as this figure to our knciwledge has only been exceeded in the Borough of Manhattan. \ew York City, where, however, the conditions are entirely difYerent from those ever to l)e expected in Detroit on account of the very large subttrbs and cities in the immediate vicinity of Manhattan. In order to be conservative in our estimate the increment in the revenue rides per capita has been assumed to be uniform from 1920, namely, one per annum. Pate In the preparation of this report it has been necessary to work out in full detail a large number of financial plans in which varying rates of fare, interest charges, methods of participation in the financing by the City and Company, and different standards of service have been assumed. In this Report only one of these plans has been shown in detail and has been selected as securing most nearly a first class service to the public at lowest cost In order to make possible the financing of a rapid transit system, such as we believe Greater Detroit will some day demand, it has been necessary to utilize City credit as now pennitted by charter. Even with tliis financial ^£mmr moa cap/ta ar y£Am m lowoas c/r/£s 1 £S* / / I \ \ \ 4 . / \ 1 L \ \ I V V / ; 1 / 1 / / J / TV J- 4 7 1 1 1 1 • 390 325 279 223 200 173 1800 « '02' 04 «1 'ft mmm on a siynD tiamsit mmmm wim dbtboit help, a uniform fare for the whole city, with free transfers between rapid transit and surface lines can nnly he maintained hy an average charge of five cents per revenue passenger carried. The statement that a five cent fare throughout the City is necessary will be better understood after a perusal of the subsequent discussion in this chapter covering rate of return on the iravestroent, the necessary ratio between gross operating revenues, capitaliza- tion, etc. The obvious necessity for this raising of the present rate of fare may be readily seen by comparing the cost of the existing type of transportation system with that which is proposed. Taking the same length of track, namely, from the river straight out Woodward avenue to Manchester avenuei the iolidwing round figures may be used lor comparison : « Woodimd Avc< Miwcnicuuii Cent Annual Interest Chaifes at 8 per cent 2 IWk Stmt Car Line . 2 Track Elevated Line , , j 2 Track Subway Line 6, B Item C, willi MitfMt Usie ateM mas to fMilitatc •1 ■■■■Itll ■ OCCWWBS^MI hMMII imtAwmfamUam « 4jmm FINANCIAL PLAN •3 The City lines of the existing D. U.. R. sjrstem under their present rate of fare (six, seven and eight tickets for 25 cents) do not produce a revenue sufficient to pay more than a very moderate return on the foregoing valuation of $30,000,000 even with the heavily loaded street car service, as at present given. The possibility of maintaining the present rate of fare is shown to be due to the constantly increasing numl>er of total passengers per car mile with an equally steady falling off in the speed on practically every line in the City, as siiown by the operating statistics of this system on page 64 and graphically on diagram, page 65. An exhaustive analysis of the situation in other cities proves the futility of undertaking the introduction of a rapid transit system in Detroit that can be financed even with City credit at an average fare of less than five cents per revenue passenger. Practically all the street railway systems east of the Mississippi river are to-day petitioning their respective Public Service Commissions for an increase in f^re or other financial rdief and this in spite of the fact that they are ahpeady receiving five cents per revenue passenger and on many of these railways the transfer privileges are not at all comparable with the almost universal transfer sysltfm in Detroit A study of the statistics of these roads shows that many of them have been mnAer oommissiott oontrd in both operation and finance for a consider- able period of years. Some of them, like Boston, have issued their securities with the aiq)roval of their respective boards of control during their entire corporate existence. With- companies so constituted, the inference that their present financial embarrassment is due to excessive capitalization is, of course, removed. A further study of their statistics indicates that their present con- dition became acute prior to the year 19 17. The lack of adequate revenue dated back of the tremendous rise in wages and cost of materials, which has so seriously increased operating expenses during 1917. This fact discourages the hope that the difficulty is only temporary. In view of these facts, and of the arguments set forth in detail in the preceding chapter of this report, in order to support a sound and conservative estimate of constructicm and operating costs, it has been considered necessary to establish an average revenue passenger fare of five cents as the basis for the financial discussicm. That it may be possiUe to reducx this fore under greatly improved conditions after the war, or on the otiier hand that oondi- tiotts might require even a higher fare, leads to the recommendation that tins question of Ian should be made subject to revtskm under suitable control by die BoBfd of Street Railway CommiMtoners. The gross operating revenue for Detroit's improved unified system therefore, has been figured on the basis of a population of 1,000,000 in 1920, increani^ by equal annual increments to 2,000,000 in 1950; oa the basis of 370 revenue rides per capita in 1920, increasing by increments of one per Average Car MUes per Hour f% Total Pass, per Car Mile ««tft^rC 'KiCKaS «5a£d*4 Brush i Car Miles per j Hour Total Pass. Miles nm^ ^^^^ ^^^^^ tH ^ ^ ^ Hamilton Car Miles Der Hour Total Pass, per Car MUe Crosstown Car Miles per Hour ^1 f"! f"HI |m4 Total Pass, per Car Mile ^^^^ ^^^^^ IF'W Fort Car Miles per Hour Total Pass, per Car Mile 5.2« 6.77 5.80 5.8(5 6.28 6.73 7.19 7.82 8.77 9.17 9.94 10.35 Jefferson Car Miles per Hour ^jjjjg ^^^^ aioiaSaSaS Total Pass, per Car Mile Michigan Car Miles per Hour Total Pass, per Car Mile • 1^ t>: ad ad ss ae c5 i-J .4 1 Car 1 Miles per Hour §8.^S SiSS^ gS$8S SSaS .^:S^"S' *«!^o5«!«S Total Pass, per Car Mile 6.72 7.07 7.32 7 Oil 7.50 7.(57 7.86 7.91 8.64 9.92 10.35 10.05 « ear 64 12 Cj^/f AMIS MOR £ - ronu. TkrGum fi I 3 § ! i 65 Ji!!iulililiJ:!!i;:::i^:'''':::l;;ilrbj!!|,'tlSj^ •• REPORT ON A RAPID TRANSIT SYSTEM FOR DSTROIT aimiiiii lo 400 revenue rides per capita in 1950 and on tlie basis of an average fare of five cents per revenue passenger. Considering the high wages earned in the industries of Detroit, and the improved service rendered to the pMWic by the unified traction system, it is believed that the adverse inlluencr Of the change to a higher fare upon the riding habit will be quickly over- come. The conservative increase assumed in rides per capita should make these estimates of gross operating revenue safe 2. OPERATING RATIO By operating ratio is meant the per cent of the gross operating revenues, which It is necessary to expend to operate the system, L e, all labor, power and general expense, expenditures for labor and material to maintain the property m an eflkient condition, the amount necessary to provide for depre- ciation, and the payment of taxes, which the system has to bear. It is evident that the cost of all these items is not dependent on the rate of fare, but is mandy dependent upon the grade of service rendered, upon the cost of labor and materials, and upon the adequacy of the provisioas made for mamtaining and renewing the property. In a computation covering a period of thirty years and with the initial penod seriously affected by the present war conditions it is obvious that no single uniform operating cost can be expected to be maintained for the eniare period It is, however, absolutely necessary in working out the finan- cial plan, to assume an operating ratio, which will represent a safe, con- aervative average of the probable actual cost of operation. Statistics of existing rapid transit (elevated and subway) systems show «4iat their operating ratio is considerably lower than that of street car lines The addition, therefore, of rapid transit lines to a city transportation system would naturally decrease the average c^ienting ratio of the system. On the other hand, the past few years and particuiariy the last year, have shown a rapid increast ip the cost of operation of practically ail ^eetric railways in the country. In the eastern district of the United States^ aamdy nortii of the Ohio and east of the Mississippi, the first six mondis of the year 1017 showed an average operating ratio of 67.89 as against 63.67 for the same period of 1916, an increase of 6.6 per cent The foregoing figures are here introduced not to ^low the numerical amount^ but to show the relative increase from 1916 tO 1917. The companies involved, or many of them, are quite different in character from the Detroit City system. The Boston Elevated for the year 19 16 showed an operatinir ntio of 70 per cent for its combined system of surface, elevated and subway iMies. The operating ratio of the Brooklyn Rapid Transit system was 64 8 per cent m 1917. As a safe average for the period of 1922-1932 in the propoaed combined Detroit system and in order to provide a thoroughly FINANCIAL PLAN 67 first class service and adequate maintenance and depreciation, we have used in the following tables a ratio of 70 per cent for the operating expenses. Hiis figure, it is estimated, will provide 18 per cent of the gross operating revenues for maintenance and dqireciaticm. Aftn- a period of ten years a further d^redaticMi charge of one per cent and iiuneasing to two per cent after another five years has been added, resulting ultimatdy in a total atlowanoe of 20 per cent for maintenance and depredation, and in an (grating ratio of 71 and 72 per cent respectively. 3. METHOD OF FINANCING City vs. CoQ^wny Financing Financial pSaaa for an independent rapid transit syston on a competitive basis show sudi poor earnings as to make the financing of the system im- possible by a company, and a heavily loosing venture if attempted by the City. A plan for the financing of a unified system, in which all capital is to be supplied by a company, results in having to obtain the capital on terms which will not leave net income sufficient to make the securities salable on the general market. This is due to the bad opinion of the public as to city transportation systems, which are not backed by city guarantees or city credit. Whatever may be said for or against the logic of this position of the public and the underlying causes, the fact remains that new Ixmds issued for the construction of street railway and rapid transit systems in such amounts as here contemplated, would be practically unsalable even under normal business conditions if they were based solely on the credit and estimated future earnings of the system ttsdf. Thit idlemative of munictpat ownership by purchase of the existiiig surface iioes and city financing of tint whole system is in^ractical in Detroit due to the statutory limitations on the amount, which can be raised within the two per cent limit of the assessable value of the real and personal prop- erty in the City. The sum thus available will not purchase the existing prop- erty and build n^d transit lines m addition. The street railway bonds as provided for in Section 10 of the Statute are no more salable than those just mentioned in the case of oxiqKUiy owner- ship, as they are not backed by City credit City and Company Partnership By participation of both Company and City in the financing, a situatinn can be created whereby the lower interest rates obtainable by the City on its own bonds, and the protecting of the principal and interest on the Company's securities by the reinvestment of the City's profits in the property, will strengthen the credit of the whole enterprise sufficiently to make all ^ securities maflcetahle and the interest charges a minimum. fi REPORT ON A RAPID TRANSIT SYSTEM FOR DETROIT CHgr To BuiM and Own Rapid Transit Lines It is assumed that the Detroit L'nitetl Railway will segrejjate its holdings of street railway properties within the City of Detroit and that the ownership of those properties can be transferred to a new company to be formed, called the Cmofimj, in this Report, which will operate the whole system under the supervisioii of and according to the rules set down by the Street Railway Commissioners* Toward such a partnership, the city will contribute the funtls necessary to build the rapid transit lines, whose cost is kept within the legal two per cent delit linnt, and which structures thus built it is to own. Subserpient rapid transit construction is to be financed by the reinvestment in the new stractofcs of the City's share in the surplus from operation. These accumu- lated smns win supply the bulk of the new funds for rapid transit construction and Iccep the bond issue well withhi the two per cent debt limit. Oompmy To Openitc %item Under Terminable License The City will grant a license to the new Company for the joint oi)era- tion of the entire system until terminated by default by the Company or by the porchase of the property by the City. On this important point the following is rpioted from the Chicago Trac- tion and Subway Commission's Report of 1916: **It is an axiom of finance that the greater the risk associated with an investment, the greater will be the return demanded by the nffestor. It is directly to the City's interest to make the security of the investment unquestionable, as the Corporation receives on new capital obligations only its actual payments for interest on these obligations. .\ny grants to the Corporation, which add to the security or the stability of the investment will tend to reduce the cost of new capital to the partnership, which will directly increase the divisible net receipts, of whkh the City gets 55 per cent." "One of the most important factors contributing to the security of the^ investment is the form of the franchise. It is principally for this reason that the Commissioners favor a terminable mnt Such a form of franchise relieves the investment of the uncertainties and embarrassments usually present during the later years of the life of one granted for a fixed term. A franchise settlement jiiay, and freipentty does, drag aloi^ for several years, and as long as tlie rjuestion is unsettled there is present in the mind of the investor the fear that the conditions which may be impo.sed on the Corpora- tion upon settlement, will be such as to make the Corporation's in- come so small as to endanger his own principal and income This makes the refundmg of old or the issuing of new obligations more expensive, and as this cost, if any, under the Commissioner's plan, FINANCIAL PLAN 69 is added to the jnirchase price of the property on which interest must be paid before arriving at the divisible net receipts, the City suffers directly as a result of making financing difficult." CmopMOy To Siipfdy and Finance Surface Lines and Eactensioiis and AH The Company will contribute the existii^ City street car system at a reasonable valuation as of the date of consoKdation, and will furnish the capital for all ^ equipment of the rapid transit and surface lines and for all extensions of the street car system. The valuation assumed for the street railway system in i^i/ is $30^000,000. Only Actual Interest Rate on City and Company Funds Allowed UpcHi the capital invested by each partner the>- are to receive from the revenues the rate of interest which they respectively must pay to secure their share of the required capital. In calculating the financial table? it w^as assumed, that the interest rate upon the capital invested by the Company will be not over six per cent. All securities are to be issued only upon approval by the Street Railway Commissioners as to amount, price and rate of interest. A sinking fund to retire the lunuls of both City and Company in sixty vears is also provided. The e(|uity in the property, represented by the bonds retired through the operation of the sinking fund, is to revert to the City. In working out this financial plan the complete refinancing of the entire value set ui)on the existing surface line properties within the City has been assumed, and the cost of this refinancing has lieen included in the estimates. This does not mean that such action, with its consequent added interest charge, will necessarily have to be incurred. It is quite reasonable to hope, that, when actual consolidation is effected, a more advantageous handling of this situ- ation can be worked out through an exchange of securities. In the computa- tion of the tables, however, the radical assumption of complete refinancing was deemed advisable in order to prove beyond question that the building program can be carried oat and the proposed unified traction system made self-support- ing with a reasonable rate of fare. The effort throughout this plan has been to assume that the least favorable conditions may exist after the war. and it should not ,be inferred, that the exact figures herein usetl are intended as an offer for the existing properties. Similarly, this plan provides for the retirement of the City's traction bonds through the action of the sinking fund. It is recognized, that a more favorable showing might be matle by retiring the higher rate junior securities of the Com])any. This has not been done in the working out of the tables, in order to kee)) the bonds issued by the City for traction purposes below the two per cent legal limit with a sufficient margin, so as not to impair the bijrrow- 70 REPORT ON A RAPID TRANSIT SYSTEM FOR DETROIT ing rapacity of the City, should later developments require a more extensive buildiiig: progfam. In this as in other features not especially noted, where a dioice cadsted, the most burdensome condition has been assumed, but not with the intention of advocating that such a procedure should necessarily be followed. If the Qty Charter should he amended as in New York, so that €% bonds on public utilities which are sdf&supporting could be exduded from the debt limit, a much more favorable condition may be created Ntt Diviatble Smpliia Sliafed Eqiialfy by City and Coa^my The act income of the system, after setting aside the mterest charges and the Sinking Fund, is to be divided equally between the City and the Com- pany, provided the Company's income does not exceed eight per cent on its investment. The City's share m the net divisible surplus is to be subject to the payment of an agreed minhnum to the Company. Purchase Pkke to City A purchase price is to be set up for the entire system whkii shall consist of the City's outstanding securities, phis the value of the surface car lines at the time of the consolidation, plus such actual additions as are made from time to time by the Company, reckoned at par vahic of the securities ^iproved by the CommissicMiers to cover these last two items, less those retired through the sinking fund. Common stock issued by the Company is to have no par value and is not to be included in the purchase price. At the purchase price thus fixed less the City's outstanding traction bonds, the City may on due notice take over the property at any time. Owncc^ of Property Acquired by City Prom Its Share in Surplus It will be seen that in this manner the City will steadily acquire an increasing share in the ownership of the whole property, and by 1950 could purchase, free of all debt, the complete system costing $156,134,000, by the payment of $75,435,000, or by about 1970 the property would revert to the City without cost. During all of this period the City would have received a return upon its money invested, including the proceeds of bonds and its share of the surplus of from 6.78 to 20.90 per cent, while the Company is to be limited by agreement to a maximum return of eight per cent, all excess over eight per cent going to the City. By this combination of City and Company credit and careful regulation of all expenditures and of security issues, a good service can be assured to the pdllic at the lowest cost and safety of principal and a fair return to the invest- ing public Wi^t this the burden of obtaining increased facilities must fall directly tqpon the taaqtayers through increase of the annual City tax rates. PIliANCIAL PLAN 71 DESCRIPTION OF FINANCIAL TABLES The f<^owing tables have been prepared to show clearly what would be the actual result of carrying out the jilans described in the foregoing portion of this report Of^site each table has been placed a brief explanation of each column of figures, indicating the manner in which they have been computed. It should be noted that the columns of figures have been grouped under genoral headings as follows : Expenditures for Investment in Road and Equipment — ^Page 77. In columns Nos. i to 5, both inclusive, there is given the total cost, each year, of building rapid transit lines by the City: and the cost of building sur- face lines and of supplying all equipment for Ixjth surface and rapid transit lines by the Company. These columns show a very equal division of invest- ment made by the City and the Company after the first two initial periods. Thus in 1922 the City expends $11,700,000, which investment has grown by 1950 to $68,050,000. The Company commencing with an investment of $42,680,000 in 1922, has increased its share of the investment by 1950 to $88,084,000. This results in a total of $156,134,000, by 1950, as the amount necessity for a higher fore than five cents to si^iport the system. The sufficiency of the tranqxMrtalion facilities tiius fnovided, and its reascmaUeness when compared with the devdopment of other rapid transit systons is shown by cdumn 6. Th^ %ttres (oolunm 6) indicate that starting in 1922 with an mvestment of $2.34 for eadi $1.00 of gross operai> ing revenue, the system has grown by 1945 to a size requiring an investment of $4.20 per $1.00 of gross operating revenue. A lowo* investment ratio would indicate insufficient facilities to earn the estimated revenue while a ratio of over $5.00 invested per $1.00 of gross receipts would indicate the necessity for a higher fare than five cents to suf^rt the sy^iem. Capitalization — ^Page 79. Columns 7 to 15 under the general heading Capitalization indicate the sources frcnn which the funds for construction and equipment are assumed to be derived. The issue of City bonds shown in column 7. occurs only in 1922, 1926 and 1932. The City's outstanding bonds (column 8) are seen in 1922 to be $11,700,000, increasing to $18,111,000 in 1926, decreasing again to only $10,787,000 by 1950, the decrease being due to the operation of the sinking fund. Columns 9 and 10 show the inve^ment by the City in rapid transit structures, subways and devated, from funds derived in accumulating its ft RSPORT ON A RAPID TRANSIT SYSTSM FOR DETROIT sllire of the net divisible surplus. The total capital thus invested by the City aunomls in 1950 to $48,833,000. The Company starting with a bond issue of $33,000,000 in 1922, plus l9,68pyOOO in some junior form of security, has outstanding in 1950 a par value of $64,647,000 in securities. ( Columns 1 1 to 1 5. ) The right hand column (17) on this same table, placed here for con- venience of fcference and comparison with the idated figures of capitaliza- tion, indicates the purchase price at which the City can acquire the pr«^)erty in any year under the proposed fgreement, free of all inddMcdncss. By comparing cohmins 5 and 17 it will lie seen that in 1950 the Gty could acquifc, free of debt, the unified system upon which had been eiqiended $78,882,000, for the sum of $65,561,000. In 1940 the unified system would represent an investment of $1 14^58,000, which the City could take over, free of debt, for $71,760,000, in cash. By 1950 the amount invested in the system would be $156,134,000, which system the City would have the right to take over free of debt for $75.435.ooo, in cash. Column 16 represents the equity in the property which is being giidaalty acquired by the City and which reduces the total investment, column 5, to the purchase price, column 17. This acquisition is effected partly through the reinvestment of the City's share of the net divisible surplus and partly through the operation of the sinking fund, the equity corresponding to the retired bonds reverting automatically to the City. The cumulative total of all the bonds which are retired can be fountl for each year by deducting column 10 from cohnnn i4 In a subsequent taWc, column 36, will be found a traction fund repre- senting the City's uninvested earnings which have been accumulated over and above those required for the building program here assumed. By 1950 thi? fund would amount to $25,642,000, which would enable the Qty to pur- chase the complete traction system, which cost over $156,000,000, by the investment of $50,000^000, additional cash. Opttntiag Sutistics, Gross Operating Revenue, Operating Income'^ PligeSI. Columns Nos. 18 to 20, show the basis for an estimated gross operating revenue (column 21) in 1922 of ?i9,85o.ooo. increasing to $40,000,000, by 1950. The operating income, column 22, shows an increase from $5,955,000, in 1922 to f 1 1,200,000 in 1950. iMeitai and Siafciiig 81 The first four columns, 23 to 26 inclusive, show the payments for inter- est on the various securities issued against construction and equipment by both the Gty and the Company, all under the reguhitions of the Street Rail- • FINANCIAL PLAN 73 way Commisstcm. Column 27 shows the amounts devoted each year to the retirement of the outstanding bonds through the action of the sinking fund. Cohmm 28 shows that the total deductions from operating income applicable to these purposes, which in 1922 amount to $3,561,000, will increase to an annual amount of $7,887,000 at the end of tlie period. Distribution of Net Divisible Surplus— Page 85. The table consisting of columns 29 to 35 indicates tlie distribution of the net divisible surplus between the Company and the City and the rates of return, which each will receive upon its investment from year to year. The last column, 36, shows the traction fund or the Gty's uninvested earnings pre- viously referred to. Column 32 shows that the Company receives a maximum ietum of eight per cmt and a minimtun of 6.94 per cent throughout the period under the conditioas here assmned, it being contemplated that some sudi limits wocdd be maintained under iSbe pcovtskxis of the a gre e m e nt The City (cd- umn 35), during the same period, has received returns ranging from 20.9 per eoA to 6.78 per cent with a general average above eight per cent No attempt has been made, in working out the financial plan, to adjust any of ^ conditions to vary these percentages. The obviously abnormal rate of return to the City in the early periods is due to its receiving one-half or more of the net divisible surplus at a time when its investment is relatively small. It must also be noted that while the Company's rate of return, column 32, actually varies between seven and eight per cent, the City's return, shown in column 35, does not include an allowance such as the City receives by the annual additions to its ownership of the property through the working of the sinking fund. It has been assumed that this progressive acquisition of the ownership of the property by the City was a fair return for granting the Com- pany the right to operate the system under die conditions named and for the definite assistance given by the City throng its contribution in ^ finatiditg and the pledging of its credit It sAichM be observed that 1^ this process of joint financing fhfongi m partnefshtp between the Ci^ and the Operating Conq^y, together with a practicidly equal distribution of the net surplus, it is possible to finance and operate litt unified traction system at a very reascnable average rate of fare. By thus xitttiging to the best advantage the elements which the Company and the Chf can contribute, a joint arrangement is made supplying adequate service as near as possible at actual cost, while properly protecting the general public who invest in the securities of both City andjCompany. financial Charts Accompanying these tables are three financial cliarts showing in graph- ical form the same facts as contained in the tables. BEPORX ON A SAPID TSAMUT MYVimm fO« IXITBOIT Chart page 86 shows expenditures for investment in road and equip- ment for the unified system. The height of the ordinates above tlie base Hne indicates in milHons of dollars the cost of the property at the dates given on the base line extending from 1922 to 1950. The upper line of this diagram shows the total cost of the entire unified system. The various sources, from which these funds arc derived, is indicated by the shaded areas, including the ciMt of the original street car system, the additions to the surface lines and c^fMnent furnished by the Company, the rapid transit lines btiUt by the City from the sale of bonds and other rapid transit lines built by ranvestment of the Oty's share in the net divisible surplus. Chart page 87 shows tiie same facts as chart page 86 except that the height of the ordinates here indicates the effect of the amorttzatioii of the outstanding securities, both City and Company, by the action of the sinking fund provisions of the agreement The heavy line bounding the City's invested earnings represents the purchase price of the property to the City. Hie ordinates above the heavy line and extending to that marked "Total Cost of Unified System" give the value of the equity acquired by the City. Chart page 88 shows the disposition of the gross operating revenue from the unified system. The upper line extending from $19,850,000 to $40,000,000, over a period from 1922 to 1950, indicates by the height of the ordinates the total gross operating revenue for each year. The large area at the base of the diagram indicates the operating expenses taken at from 70 to 72 per cent of the gross operating revenue. *fiie portion above this area and below the gross operating revenue is the operating income, which is divided as indicated between interest charges, sinking fund and the share of the surplus allotted to the City and to the Company. FINANCIAL TABLES n mmom m a sapid transit ststsm fos dbtroit EXPENDITURES FOR INVESTMENT IN ROAD AND EQUIPMENT The Date is Assumed To Be the First of January in Each Year for Gilciniiis I to 17 Indtisive and for Column 36 Cdmm I. The cost of rapd transit construction is shown in column i, opposite the date when the individual tines are planned to go- into oper- ation, in accordance with the building program elsewhere described. These sums include the cost of financing and the interest during con- struction, and are supplied by the City either by tlie sale of bonds or by the reinvestment of both its share in the net divisible mtfim and the interest earned on same. Under the conditions assumed in computinff these financial tables the issuance of City bonds will not be required after the expenditures of 1932 are met. The City's share in the net divisible surplus and the interest on the reinvested earnings will thereafter provide for the City's part of the construction requirements. Column 2. This column represents the total cost of rapid transit construction the amounts shown in each year being the cumulative total erf the sums shown in column I. C^umn 3. The cost of surface line extensions and equipment which will go into operation during each year, and the cost of the equipment of the rapid transit lines are shown opposite the corresponding date. As in column I these amounts include interest during construction and the cost of financing, the amounts representing the par value t>f the securities issued by the Company for the above purpose, subject to the approval of the Street Railway Commissioners. In the plan herein submitted it has been assumed that tlie Company will raise 80 per cent of its necessary funds by the issuance of bonds and 20 per cent by the sale of stock or some other junior security. The amount, $42,680,000, shown in column 3 for the year 1922 includes the estimated cost of the D. U. R. surface line system, as at December 31, 1917, plus the cost of the equipment of the Woodward avenue subway and elevated, plus the cost of construction and equipment of surface line extensions up to January i, 1922. The amount allowed for the value of the D. U. R. city surface line system is $30,000,000 for the track and equipment within the city limits of 1914, ^us extensions to December 31, 19 17. Column 4. The total cost of surface lines, their extensions, and all equip- ment for both surface and rapid transit lines is shown in this column The amounts represent the cumulative total of the amounts shown in cdumn 3. Column 5. This column is the sum of columns 2 and 4, showing the total cost of the entire city traction system, rapid transit and surface, with their complete equipment as in operation at the beginning of each year. Ctflumn 6. This column shows the "Investment Ratio" for each year, being the ratio of the total investment in the unified system, as shown in column 5, to the gross operating revenue, as shown in column 21. FINANCIAL PLAN 77 EXPENDITURES FOR INVESTMENT IN ROAD AND EQUIPMENT 1982 1933 1934 1936 1998 1937 1988 1989 1940 1941 1942 1943 vm im 1946 1947 1948 1949 1060 11,200.000 • • « • '7,700,060 12,000,000 12,000,000 36,350,000 36,360,000 36,350,000 36,350,000 44^ 44,050,000 44,050,000 44,060,000 44,050,000 56,050,000 56,050,000 56,050,000 56,050,000 68.050,000 68^ 68,060,000 68,050,000 68,060,000 68,060,000 6,000.000 812,000 812,000 812,000 4tll8QyOQO 812,000 812,000 812,000 812,000 4,986,000 812,000 812,(X)0 812,000 5.795.000 812,000 812,000 812,000 812,tXX) 812,000 By City By Company Date Expenditures for Rapid Tnosit Con- struction in Each Build- ing Period Totallnvest- ment in Rapid Transit Con- structkm Expenditure for Surface Lines and All Equipment Bsdt Year Total Invest- ment in Surface Lines and All Rqwptptiit Totallnvest- ment in Unified System Investment Ratio Column Numbers 1 2 3 4 & 6 1922 1923 1924 1926 1926 $11.700,(X)() • • • • • • • • 13.450,000 $11,700,000 11,700,000 11,700,000 11,700,000 2M60,000 $42,680,000 812,000 812,000 812,000 6M00O $42,«80,000 43,492,000 44,304,000 46,116,000 50,38^000 $54,380,000 55,192,000 56,004,000 66,816,000 2.74 2.69 2.64 2.59 SJ4 1927 1928 1929 1930 1931 • • • • 25,160,000 25,160,000 26,160,000 26,150,000 26,160,000 812,000 812,000 812,000 812,000 812,000 51,196,000 52,008,000 62,820,000 53,(i32,(MX> 54,444,0a) 76,346,000 77,158,000 77,970,000 78,882,000 79,594,000 3.27 3^ 3.16 3.11 3.06 60,444,000 61,256,000 62,068,000 62,880,000 68,372,000 69,184,000 69,996,000 70,808,000 75,793,000 76,605,000 77,41 7,CKX) 78,229,000 84,024,000 84/ 85,648,(XKt 86,460,000 87,272,000 88,084,000 96,794,000 97,606,CK)0 98,418,000 99,230,000 uiiisuyooo 112.422,000 113,234,000 114,046,000 114,858,IKX) 131,843,000 132,655,000 133,467,000 134,279,000 152,074,000 152,886i000 153,698,000 154,5 10,(KX) 155,322,000 166,134,000 mmmm m a bato tbaiwit wmmm iob dbtboit CAPITAUZATION Cohmm 7. Tliis cohmm shows ti» par value of the bonds issued by the City at tlie ist of January in the years 1903, 1996 and 1933. Tboe bonds are assumed to be issned at par and tetired (f etptal anntnl install- ments dvanng a period of sixty years. Co||||||Pi. nil colaiiliiliOiws the par vahie of all Gty bonds outstanding^ at tie beginning of each year, being the aimiilative total of column 7, less the bonds retired each year through the application of the sinking fund. Cokam^ 9. This column shows the amounts of the City's earnings reinvested ill TOe property at the dates shown. These amounts are derived from the Gty's share in the net divisible surplus (column 33), plus the interest on the rei nv es t e d sums (cohmm 26), the whok accwnrfated at four per cent up to the date of the investment Those parts of such aocmmilated fmids which caccced the capital raqoifeiiMiits of the City^ a^ Column 10. This column shows the totdl amomt of reinvested earaings hy the City and is the amntlative total of cohmm 9^ Ctfimmi II. The bonds issiied eadi year by the Company are ilMmn in this cohmm, tfie amoont being figured in accordance with the explanation given for column 3. The Company's bonds are assumed to be retired by equal annual installments during a period of sixty years. Column 12. This column is the cumulative total of column 11, less tiie bonds retired each year through the application of the sinking fimd. CofMmn 13. This column shows the par value of the junior securities issued by the Company each year in accordance with the explanation given for ooramn 3* Cotmum 14. This is the cumulative total of column 13. Column 15. This column shows the Company's total outstanding securities at the beginning of each year, being the sum of columns 12 and 14. Column 16. This is the equity in the property reverting to the City, free of debt, acquired through the action of the sinking fund and through the reinvestment of the City's share in the surplus. It is the sum of column io phis the omrahitive total of cohnrni 37. Column 17. This column is the purchase price, free of debt, of the whole mified system to the City at the b^finning of each year, being the sum of the iotal then outstanding City and Company secnriticf (cohmm 8, plus column 15). The swn ol coinmiit 16 and 17 win mpm^ the total invcttment, oohmm 5. By City Ottte Column Numbers 1928 1917 1988 1929 1990 1981 1982 1988 19B« 1986 1988 1987 1910 1911 1912 1913 1944 1918 1917 1948 1949 19iO Bontte liiMd in 111,700,000 7.191J0I» Total Bonds 'Outttnmlnig $11,700,000 11,505,000 11,310,000 11,115,000 18»111,0Q9 17,79«>,000 17,481,000 17,166,000 1^61,000 18,888,000 16,547,0(X) 16,227,(XK) 16,907,000 16,587,aX) 16.287.000 14,947,000 14,627,000 14,307,000 13,987,000 13.867,000 13347,000 13,027,000 12,707,000 12,387,000 12,067.000 11.747.000 11.427,000 11,107,000 10,787,000 Earnings Reinvested in Bidi Period 9 |0h268^ »»•••• «>••«•» • »*•■« 10.874,000 **•»•* w • w • «. * 7.700^.000 '•«•••<« 12;0O0u00O Total Earnings Rctnveated 10 18^^ 6,259,000 6.269.000 8,269.000 6,259,000 6,259,000 17,133,000 17,i:«,000 17.133,000 17.133,000 Hsss^o 24,833,000 24,833,000 24,833,0(X) 24,833.000 36,833,000 36,833,000 36,833,000 36,833,000 48,a33,000 48333.000 48333,000 48,833,000 48,833,(X)0 48,a33,000 VINANCIAL PLAN 79 CAPITALIZATION By Conqiany Bonds Issued Eadt Year lotal Bonds OiitctaDdtng Junior Securities Issued Badb Year Total Junior Securi- ties Outstanding Company's Total Outstanding Securities Equity Acquired by City Purdiase Price to City (Cols. 8 and 15) 11 12 13 14 16 18 17 133.000,000 133,000,000 $9,680,000 $9380300 $42380,000 42,942,000 43.194,000 43.436300 48.122.000 S.>4 380000 64.447.000 64304300 54350300 66,233300 628,000 628,000 628,000 4fimfi(30 38,078,000 33,146,(XX) 33,203,000 36306,000 184,000 184,000 184,000 1.185300 9364,000 10,048,0(K) 10332,000 11,427,000 $745,000 1,500,000 2366,000 9301.000 828^000 628.000 628,000 628,000 628.0CX) 36,674,000 36,642,000 36,600,000 :5(>,o47,(KtO ;i6,484,(Hi0 184300 184,000 184,000 184,000 184,000 11.611,000 11.71t5,(XX) 11,H7!MKX) 12,16:5,0(X) 12,347,(X»0 48,286.000 48,437.tX)0 4H..57!MK)0 4S,710,0()0 48.831,000 10.265,0(K) 11.240,ftOO 12,225.000 12,221.000 12327300 (>(),08 1,000 6.5,H1S,()(»() 65,745,000 65.561.000 65387300 4,640,000 628,000 628,000 628,000 40.422.ai0 40,271300 40.110,000 39,938,000 42.746300 1360.000 184300 184,000 184,000 1362300 13,707,000 18.891,000 14,075,000 14,259,000 1S321300 54.129,000 54,162,000 54,1S5,(X)0 64,197,000 68387300 2(}.l 16,000 27,217.000 28.326.WX) 29.446300 38378300 70,676,000 70,389,000 70,092,000 69.784.000 73334300 628,000 628,000 628,000 628.000 8366,000 42,5(.H,O0O 42.252,000 41380300 41.718,000 44,669,000 184,(XX) 184,000 184300 184.000 1,130,000 15305,000 16.689,000 15,873.000 16,057,000 17,187,000 68309,000 67341.000 57,862,000 57,773,000 61,846,000 39.466,000 40,666,000 41377,000 43,098,000 56330,000 72,956,090 72,56S,000 72,lfW,(K)0 7l,7(\0,(m 75,513,000 628,000 628,CK)0 628,000 4,482,000 628.000 44,31 1,(X)0 43,052,000 43,583,000 47,057.000 46308300 1.84,000 184,000 184.000 1313300 184300 17,371,000 17,555.000 17,739,000 19362300 19338300 61.682.000 61307,000 6I3223OO 66,109300 66338300 57,626,000 58,933,000 60,250,000 73378,000 7438I3OO 76,029.000 74334,000 74,029,000 78,4iK},000 773O63OO 628,000 628,000 628,000 628,000 46,136,000 45,6a^000 45,173.000 44,676,000 184,0III TRANSIT SYSTBH FOR DSTROIT OPSRATIIIG STATISTICS— GROSS OPBRATINQ REVENUE AND OPERATING INCOME Cdtiififi i8. Tlie population of Ekiroit is estimated to be 1,000,000 in 1900 and 2,000,000 in igs^. It is assumed that the gixiwth will be in equal yearly increments. The figures shown in this column represent the average cstipated population in each year from 1922 to 1950 inclusive. Column 19. The revenue rides per capita per annum are estimated to be 370 in 1920 and 400 in 1950 and to grow in equal increments ol one ride per capita each year. Column 20. The total revenue passengers per annum are obtained by multi- plying columns 18 and 19. Column 21. The estimated gross operating revenue is calculated by multi- plying column 20 by five cents giving the result in dollars per annum. Five cents is here assumed as the average fare per revenue passenger tturouglioiit tlie twenty-nine year period. Column 22. The operating income is based on an operating ratio of 70 per cent for the jrears 1922 to 1931 inclusive, on 71 per cent for 1932 to 1935 and on 72 per cent for the subsequent period. In other words, cohimn 22 is 30 per cent, 29 per cent and 28 per cent of cohimn 21 for the above intervals. The operating expenses include 18 per cent of the gross operating revenue from 1922 to 1931. 19 per cent from 1932 to 1935 and 20 per cent from 1936 to 1950, to provide for maintenance and 'depreciation. FINANCIAL PLAN tt OPERATING STATISTICS-^0nO68 OPERATING REVENUE AND €»>ERATING INCOME Ywre Column Nttmben 1922 tm im im im 1927 1928 im 1S81 1982 1«S3 1034 1935 1937 193« 1969 1940 1941 1942 1943 1944 1946 194A 1947 1948 1949 19B0 Population 18 l,0 1,10(),00<» 1,133,000 1,186^000 1,233,000 1,266,000 1,:'.0(),()00 1,333,000 1,306,000 1,400,000 1,433,000 1,4(>6,0()0 1,. 500,000 1,633,000 1,500,000 1,600,000 l.WW.OOO 1.666,000 1.700^ 1,733,000 1,766,000 1,800,000 1,833,(KK) i,86r),a)0 1,900,000 1,933,000 1,966,000 2,000,000 Revenue Rides per Annum 19 372 373 374 375 376 377 378 379 380 381 383 384 385 386 887 388 389 990 391 392 3S3 394 :m 396 397 399 400 Revenue Passengers per Ammm 20 397,(xx»,na) 410,<»(XVMi 424,,(.KtU 438,000,000 462,000,000 466,),00<) 479,(KK.»,,6(.X),00U 30,300,000 31,050,000 31,800,000 32,500,000 33.250,000 3400QuOOd 34i700,000 35,450,000 36,2,<•<»<» 36,95* >,<»<)(» 37,750,000 38,500,000 39,250,000 40,000,000 Opeimtiiit 22 $.5,955,000 6,1.50,000 (),:iG(»,oito 6,570,ai0 6,780,000 6,990,000 7,185,000 7,39.5,000 7,605,000 7315,000 7,700^100 7,9,50,000 S, 164,(100 8,3H1,(X)I> 8,28S,(KH» 8,904,000 9,100,000 9,305j000 9,520,000 9,716.000 9,926,000 10,136,(X)0 10,346,000 10,570,000 10,780,000 10^990^000 11,200,000 •I mBPORT OM A BAPID TBAMSIT SYSTBM POK DETROIT INTEREST AND SINKING FUND Column 23. This column shows the interest on the Company's total out- standing bonds J>ayable at the end of each year, the rate being assumed at live per cent. Column 24. This column shows the interest on the Company's outstanding jmiior accurities payable at the end of each year the rate being assumed at SIX per cent. Cdmmm 25. This cohumi shows the interest on the City's outstanding bonds payable at the end of each year, the rate hdng assumed at five pn cent. Column 26. This column shows the intorest on the City's reinvested earn- ings payable at the end of each year, the rate beii^ assumed at five per cent* Colitffiit 27. This column shows the amount set aside out of operating income to retire all bonds. City and Company, through the application of the sinking fund, at the end of each year. The equity in the property repre- sented by the amounts in this column reverts automatically to the City ^reby reducing the purchase price (column 17). Column 28. This column is the sum of columns 23 to 27 inclusive and represents the total deductions which must be made from the operating each year in order to arrive at the net divisible sarfdus. FINANCIAL PLAN t3 INTEREST AND SINKING FUND Calendar Year Interest on Company's Bonds 5 per cent liiLcrcot un Company's Junior Securities 6 per cent Interest on City's Bonds 5 per cent X It LCI Co l( City's Reinvested Earnings 5 percent Sinking Fund (Bond Retirement) Total Deductioiis from Gtoeratittg Income Column Numbers M. 24 25 26 27 28 1922 1923 1924 1925 1926 $1,650,000 1,(>54,00() l,660,0(k) 1335^ $581,000 :)!IL',( HHI (i03,(KN) ()14,0(K> 686,000 $585,000 ")(>(•.,( HH ) .").")( i,(MHI 906,000 • • • ^13^000 $745,000 7.>5,(t(tO 7(t«i,0(iU 776,000 964,000 $3,561,000 3,57(i.(X^lO 3,592.000 3,606,(X)0 4,704,000 1927 1928 1929 1930 mi 1,834,000 1,832,000 1,830,000 1^7,000 697,000 708,000 719,063,000 747,000 732.000 715,000 699,000 683AN)0 l,242,aiO 1,242,000 1,242,000 1,242,000 1,842JOOO l,2(.l0,000 1,211^100 1,221;000 lS32m 1,296.000 6,244.(Kt0 «»23s,(i0o 6.22UJQ00 6^000 imm 1942 1943 1944 1945 1946 2,216,000 2,l»7j000 2,179,000 2,352,000 2,33O,0(K) 1,(142,000 1,053,000 1,064,000 1,143,000 1,154,000 fi67,(X)0 651,000 635.000 (519,000 (iO3,0(l0 1,842,00(1 1 1,842AN) 1 i,842xno 2.442,000 2,442,000 I,3(t7,(i00 1,317^)00 1,828^ 1,403.000 1,414,000 7,073.000 7/>48,000 7,a59,O00 7,943,000 1947 1948 1949 2.306,(K10 2,283,000 2,268,00(,) 1,165,(XK) 1,176,000 1,1S7,00() 587,000 571,000 1 5.1.") ,( H H I 1 2,442,000 2.442,(K)0 2,442,(X)0 1,424,000 l,4:i5,(KiO 1,445,(KX> 7,f>24,O00 7,!K)7,00<1 7,8S7.(VX> I •4 wmmm on a sapid transit systsm for Detroit MSTRIBimON OF NBT DIVISIBLB SURPLUS C^wmn 29. The net divisible surplus, shown in this column is the amount retnainine alter dcdnctine cdtunii 28 from tht operating: inoom^, coliiiiifi 22. ColfMWii ja TMs cdttinn shows the Company's share in the net divisible surplus and is 50 per cent of the same unless the amount so established makes the Company's total income more than ei^ht per cent on the par value of the Company's then outstanding securities. All amounts alwve this eight per cent are allotted to the City in addition to the 50 per cent of the net divi^ble surplus otherwise ^lo^cd. Cuittmn 31. This column is the sum of columns 23, 24 and 30, and the total amounts paid each year out of tine operating imxMne to the UMnpony. Cdrntm 52. This csolumn shows the actual rate of return, each year, on the Con^paiqr's total outstanding securities. Cdmnm 35. This colanut shows the City's share in the net divisible surplus and is 50 per cent of same or more in accordance with the exidanation given m Cohmm 3a Column 34. This column is the sum of columns 25, 26 and 33 and represents the total amounts paid to the City each year out of the operating income. Cidmmn 35. This column is the actual rate of return each year on the City's total of outstanding bonds aixl reinvested earnings. Ci^umn 36. This column shows the amount of the traction fund whidi is assumed to be created 1^ the accumulation of the City's uninvested eam- , ings with interest at four per cent as explained in column 9. These sums in column 36 if deducted from the purchase price, column 17, would show the actual amount of additional cash in any year, which the City would have to pay to own the unified system, free of all debt* iHiiii financial plan •s DISTRIBUTION (M NBT DIVISIBLE SURPLUS— TRACTION FUND Cakn- dw Ymx Net Divisible Surplus Com- pany's Share in Divisible Net Surplus Com- pany's Total Income (Interest and Surplus) Rate of Return on com- pany's Out- standing Securi- ties peroeot Uty s Share in Divisible Net Surplus City's Total Income (Interest and Surpius) Rateo<{ Return on City's Out- standing Bonds and Re- invested Income percent City's u nin* vested Earnings (Cumula- tive with 4 percent) Column Nos. 29 90 81 32 33 34 36 38 1922 1923 1924 1986 ins $2,394,000 2,574,000 2,768,000 2,964,000 $1,183,000 1,190,000 1,196,000 1,201,000 $3,414,000 3,436,000 3,456,000 3,475,000 8.00 8.00 8.00 8.00 7^ $1,211,000 1,384,000 1,572,000 1,763,000 1,088,000 $1,796,000 1,959,000 2,138,000 2,319,000 2.257.000 15.35 17.02 18.90 2a90 A27 • • • « ■ • <* * 1927 1928 1929 1930 1931 2,281,000 2.473,000 2,679,000 2,886,000 3,093,000 1,140,000 1,236,000 1,339,000 1,340,000 1,341,000 3,671,000 3,776,0(X) 3,888,000 3,897,000 3,906,000 7.61 7.80 8.00 8.00 8.00 l,141/)00 1,237,000 1,340,000 1,646,0(X) 1,752,000 2344,000 2,424,000 2,511,000 2,702,000 2,892,000 10.20 10.72 11.68 12.69 • • • • • » « ■ • • • • 1932 1983 1934 1935 UM 2,134,000 2,336,CKX) 2,642,000 2,762,000 1,067.000 1,167,000 1,217,000 1,381,000 l/ttllJOOO 3,910,000 4,016,000 4,121,000 4,234,000 4,074,000 7.22 7.41 7.61 7.82 7.02 1,067,000 1.168.000 1,271,(K)0 1,381,(XK) l.O19/)0O 2,751,000 2.836.000 2,923,000 3.017300 3324300 8.18 8.61 8.86 9.22 7.64 • • • «• 11.107306 1987 1988 1989 1940 1941 2,456,000 2,676,000 2,879,000 2,220,000 1,120,000 1,228.000 1,337,000 1,439,000 1,110,000 4,I75,()(R) 4,281,000 4.388,000 4,487,000 4,374,000 7.21 7.39 7.59 7.77 7.07 1,120,(X»0 1.228.000 1.338,000 1,440,000 1,110,000 3,U»9,(»00 3.202.000 3.295.000 3,381,000 3,635,000 7.82 8.12 &42 8.72 7.20 1,151,00(1 1,197.000 1.246.000 1,295,000 2,687,000 1942 1943 1944 IMS 1M6 2,447,000 2,656,000 2^78,000 2,177,000 8,408^ 1,223,000 1,328,000 1,439,000 1,068,000 4,480,000 4,578,0(X) 4,682.000 4,688,000 7.26 7.45 7.64 6.94 7.12 1,224,000 1,328,000 1,439,000 1.068,000 3,733,000 3,821,000 3.U16.000 4,160.000 4.247.000 746 7.67 7.91 6.78 6i98 2,794,000 2,906,000 3,023,000 4359,000 8364300 1947 1948 1949 1950 2,646,000 2,873,000 3,10B/K» 1,323,000 1.436»000 4,794,(X)0 4395,000 7.32 7.60 7.60 1,323,000 1,437.000 1M00O 4,352,000 4,460.000 4^6l8y000 7.20 7.39 7.60 12,031,000 16,278,000 20,811,000 25,542.000 m MAO JMD nWPMSNT Sa/?rAC£ 4 /^APiD TRANSIT UNeS £Oi//rr M MyesTMmr FOR ROAD AND £Qa/PM£NT AS ArF£OT£D DY T/f£ S/NK/N6 rOND AND TN£ CITr 'S R£/NI/£ST£D £ARN/NGS UN/F/£D erCT£Af Simmce 4 rap/d tran^/t l/nes 87 88 ! FINANCIAL PLAN COMPARISON OF TYPICAL ALTERNATIVE FINANCIAL PLANS Investment Per Capita Compared With Other Cities The perusal of the following statistical data will be helpful in judging of the economy of the traction system proposed in this Report. The Boston unified surface, elevated and subway system in 1907 served a population of 1,016,395 and Iiad invested in its transportation sys- tem $65,979,896 or $65.00 per capita. In 1916, Boston had invested $116,022,000 in its unified transportation system serving a population of 1,244,645, or the investment per capita in- creased to $93.0C}t. In 1916, Chicago served its population of 2,500,000 with competing sur- face and elevated systems, representing conservatively a valuation of $220,- 000,000 of which $150,000,000 is the purchase price of the surface car system under agreement with the City under pidilic regulation, and $70,cioo,ooo is a conservative valuation of the elevated Unes made by the Chicago Traction and Subway Commission. This means an investment of $88.00 per capita of population served. The luiified system, surface, elevated and siilnvay recommended by the Traction and Subway Commission for 1937 would involve an investment of $102.00 per capita of population served. Ban A, which is shown in detail and recommended in this report, con- templates an initial investment by 1922 of $54,380,006 for a population of 1,066,000, or $51.00 per capita. By 1942 an investment of $132,655,000 is contemplated for a population of i,733»«». ^ $76.50 per capita of popula- tion. By 1950. $156,134,000 is invested, or $78.00 per capita under this plan. Considering the physical conditions of Boston and Detroit, the relative expenditure per capita in Detroit seems reasonable, being lower on account of ease of construction, the level territory and the absence of the obstructions by hills, rivers and extremely narrow streets, wfaidi occur in Boston. The reason for the cost being lower than Chicago is that instead of two extensive com- petitive systems forming the basts of a un^ed system, Detroit now has the opportunity to avoid duplication of surface and rapid transit Unes in the plan here laid out, which with the more compact and cfvenly distributed residential and occupational districts reduces the necessary investment The estimates of cost for the different lines proposed in Detroit are shown in Appendix VI. Three typical plans in whicli various important factors have been varied may be described and compared as follows : •I RSPORT Oil A lUyPID TSjyiSIT SYSTEM FOR DSTROIT Plan A Pbe A contemplates an adequate but conservative building prognun, an average uniform fare of five cents throughout the period, with free transfers between all lines. A first class service is allowed for in the operating eacpense. The interest charges and return to the City and Company are kept within reasonable limits, but such as will permit of the sale of securities, namely, showing a return equal to from iVa to times the interest reciuirements. The net surplus is of sufficient size to insure the payment of all interest charges, even if the actual results of operation should deviate to some extent, as may be expected, from the assumed conditions of trafhc used in estimating the return under this financial plan. Plan B A number of plans based upon the selling of six tickets for 25 cents and universal transfers were worked out, but with unsatisfactory results. These plans are grouped under Plan B. A curtailed building program was here assumed and the investment of the City was reduced to $53,663,000 by 1950 against $68,050,000 under Plan A. On account of the decrease in the surplus. Plan B involved the issuance by the City of $25,533,000 bonds as against $19,217,000 under Plan A. The security of the bondholders as to their interest is not well protected with this lower fare under fluctuating conditions of traffic even though a curtailed service was assumed in Plan B. This type of plan results in lack of financial strength, which makes the sale of the securities very difficult. It is also believed, that Plan B would be unsatisfactory to the public both as to the extent of operated trackage and as to frequency of service. Flm C In a series of tables, which may be called Plan C, curtailment of the building program from Plan A was assumed the same as under Plan B. The fare charged was taken at six tickets for 25 cents, as in Plan B. The service assumed in this type of plan was e(|ual to that of Plan A. This results in an annual deficit to be made up by the City, if all interest charges are to be met and the Company is to receive a minimum return of seven per cent on its out- standing securities. This deficit would amount to from $1,187,000 to $2,890,000 annually. There being no other return on the City's investment than actual interest on seairities issued under Plan C the whole cost of con- iHucting the raf»d transit lines, $53,665,000, must be raised from the sale of homls issued by the City. These results demonstrate clearly tliat adequate service cannot be rendered FINANCIAL PLAN 91 at less than an average five-cent fare on a self-supporting unified surface and rapid transit system even with the strictest regulation of investment and return. Realizing the fluctuating character of the cost of service from year to year the plan recommended in this report provides for regulation of the fare to conform to the cost of the service and for the limiting of the return upon the investment to the lowest rate at which cs^iital can be secured from time to time. CHAPTER V CONCLUSIONS iUND RBCOlf MBNBATIONS Conclusions In view of the foregoing stutcmcilt of facts and their analysis covering the existing and indicated future traffic situation in the City of Detroit, as developed by our investigation of 19 14 and supplemented and confirmed by a further study in 191 7, the following conclusions are reached. 1. Detroit can confidently be expected to grow in the near future to a size which w ill support and necessitate rapid transit to supplement the exist- ing street car system. A canvass made along conservative lines warrants the assumptitjn that the present i)opulation is over 850,000 and perhaps nearly 900,000 in the City and suburbs (^^ l>etroit. A future estimate of 1,500,000 |X)pulation for 1935 and 2,000,000 population in 1950 is reasonable. 2. The existing traffic conditions involving rush hour congestion as well as continuous traffic throughout the day warrant the inunediate decision as to the construction of a rapid transit line on at least one thoroughfare in the City. In this connection it is pointed out, that the period necessary for negotiation, detail designing, letting of contracts and construction is probably three years and consequently further congestion must be considered certain before relief can be obtained. 3. Subsequent growth of the City in other districts will require, from time to time, the building of high speed lines, which should form a thoroughly 0)-ordinated system. 4. The best service for the public at the lowest cost can be supplied by a system of surface and rapid transit lines operated as a unit, with transfers and connections so arranged that for a single fare and free transfers passen- gers may conveniently utilize both types of transportation. 5. An independent competitive rapid transit system will not offer a satisfactory traffic solution nor can it be financed successfully as a self-support- ing enteqirise by either the City or the Company. 6. The financing of a unified system by private capital without the City's financial co-operation is not considered practical; nor can such a unified system be financed by the City alone under existing charter limitations as to permissible amount of the bond issue. 7. In other cities co-operation and partnership between the city and the companies has been secured and tried. Benefiting by the experience thus M CXXNCLUSIONS AND RECOMMENDATIONS 93 obtained and by utilizing charter provisions of the City of Detroit as to the bond issue, a satisfactory combined system of surface and rapid transit line.4 can be financed and operated and be made self-supporting. Commission con- trol of transportation systems has been developed to a point where the weak- nesses and defects of existing regulatory systems have been recognized, so that it is possible to now devise a commission control, whidi wiU secure good service and a fair share of the fetttm to tiic City from the operation of ^ system. 8. In order to provide adequate facilities and good service in a reason- able time proportionate to the City's growth, the financial bunten, even if supfiortfid by the City's credit, cannot be carried by the operating revenue without an increase of the fare above that now charged for surface car trans- portation. Rtfifwui'miMia^MWMt It is, therefore, recommended : A. That a Unified Surface and Rapid Transit system be planned as the best permanent sohition of the City's traffic proUera, and that every effort be made lo work toward securing sudi a system with one fare and transfers between all lines. That to this end a partnership agreement be entered into between the City of Detroit and a Company formed to take over the city lines of the Detroit United Railway; ythidb partnership shall provide for the City to finance, con- struct and own the structures of the rapid transit lines, and for the Company to finance and construct the surface line extensions and to supply all the equipment for both surface and rapid transit lines. This partnership agreement to further provide for the operation by the Company of the entire system under a terminable license and subject to super- vision as to financing, construction and service rendered, by the Board of Street Railway Commissioners. The financial details of the proposed agree- ment are treated under the "Financial Plan." B. That a policy be decided upon of building subways only in the con- gested centers of the City and that rapid transit lines be extended through the outlying districts by a system of overhead tracks placed upon private right-of-way, or, where the streets are sufficiently wide to permit of a single column structure in the center of the street. with<3ut obstruction of light and access to the adjoining property, that this method be followed. C. That negotiations be at once commenced with the present owners of the surface lines to the end of accomplishing recommendation "A". That simultaneously the necessary legal steps, surveys, and detail plans for a north and south rapid transit line on Woodward avenue, and an east and west rapid m REPORT ON A RAPID TRANSIT SYSTEM FOR DETROIT transit line on or near Michigan-Gratiot-Forest avenues be made, so that upon the termination of the war, construction could immediately begin. So much time has been required in other cities for the necessary pre- liminary work, legal agreements, surveys, acquisition of right-of-way, design of structures, etc.. that all such matters should be taken up as soon as practic- able and worked out in final form. Tt is pointed out that if these matters are neglected or postponed until normal economic conditions are restored, the ensuing period of reestablished activity will produce traffic congestion far worse than any yet experienced in Detroit. D. That the necessary legal steps be taken for securing the various additional powers and stipulating the functions of the Commissioners in their regulation and control of the City-Company partnership as will be necessary to fully carry out the plan herein proposed. Whether such matters can be properly provided for in a joint City-Company agreement under the charter amendment of April 7, 191 3, or whether a further amendment of the charter ii necessary, is a question for decision by the legal advisers of the City and of tiie Oom^psny* E. That as the charter amendment of April 7, 191 3 provides for im- mediate complete municipal ownership and operation of the system, whereas the plan herdn proposed contemplates a preliminary period which may extend over a number of years during which joint City-Company partnership will be in effect, it is obvious that certain additional provisions and possible modifica- tions in the organization of the Board of Street Railway Commissioners as provided for in the amendment will be necessary. It is recommended that if they can be made legally effective and binding, such provisions be incorporated in the City-Company agreement so as to safeguard the interests of the traveling pmilic, of the investors in City-Company securities and of the operating com- pany, during the period of joint partnership. F. That in the agreement or charter amendment the Commissioners l>e empowered to approve or disapprove of additional rapid transit lines or street railway extensions or equipment, or both, either on their own initiative or when petitioned by either the City authorities, or by the Company, or by a citizens' conmiittee, so that they are given full control of the "Building Pro- gram** such as outlined in this Report. G. That the agreement or charter amendment for City-Company part- nership contain suitable legal powers authorizing the Board of Street Rail- way Commissioners to supervise and approve the City's necessary traction bond issues and all of the issues of securities by the corporation operating the nmiied properties. Hiis reconmiendation being aimed to secure complete uni- formity of action and control of both classes of securities. CONCLUSIONS AND RECOMMENDATIONS 9S H. That it shall be mandatory upon the Commissioners to so regulate the charge for fores and transfers on the unified system as to maintain a sound financial condition of the combined and unified properties, as contemplated in ^e charter provision for municipal ownership. This is necessary to make the securities issued either by the City or the operating company, under the ComntiasioHers* direction and control, salable to the general puMtc. I. That the Commissioners, in the regulation of fares and the author- izing of construction expenditures, shall be required to aim to maintain the gross operating revenue at such an amount as will not only pay all operating expenses, interest and sinking fund, but also will provide a substantial surplus, so that the City's share in said surplus, plus the bonds which the City can issue under its two per cent limit will meet the construction re(iulrenients of the rapid transit lines. The Com])any's share in this surplus, plus the interest charges on its outstanding securities, shall in each year be not less than an agreed upon minimum per cent on said securities. J. That an interest reserve fund shall be created by the sale of bonds in sufficient amount to equal three per cent on the outstanding City and Com- pany securities. Said fund to be held by a trustee, who shall invest three- fourths of said fund in United States bonds, and hold one-fourth in cash. Tins ftmd is to be drawn t^n only to pay interest and dividend charges on the outstanding securities, and then only in the event that the operating ina»ie is not sufficient in any one year to meet these diarges. K. That in the event of such a use being made of the interest reserve fund it shall be the duty of the Commissioners to immediately increase the fares, reduce the service or otherwise increase the net inoMiie so as to fully reimburse this fund out of the surplus earnings in the next succeeding year. L. That a purchase price, based upon cost, be fixed upon the surface line system and equipment for surface and rapid transit lines at which price the City, during the term of the agreement, may acquire the property upon suitable notice. That this purchase price shall be based upon a fair value of the Com- pany's surface line system at the time of the agreement, plus the actual addi- tional investment in the property, under commission supervision. That the equity in the property represented the bonds r^ired eadi jrear shall revert to the City so that through the action of the sinking fund, city owno^ip of the surface line systwn shall be added to the dty ownership of the rapid transit lines awl the ownership of the whole system thus ultimately shaM become vested in the Oty. i APPENDICES 97 f ♦ e I T o "3. 88 SiO IM 'is e» eo Of sr 00 -! 35 II ei * n p4«em 'it * 40 *0 I— I a u 4) = ° a 3 F I r « f? wfrf •! leT 9* .xf ^ •-» . tot. ^■5 «o«d'"* w fr^ac « lo I— tc WTO'-' 35 iOi-<« ©i •o»<5 eot ^ ~ o — c^J <-i 5i' If ^1^ w « « • • wV' # N»0 ..pit •J 1^1 111 11 ill s e 'J O (2 :3: — « .2 • c a O CO u C HUH iSW £ tM «M QJ ^ O O O M O bO e e c S e 9^ 4) ft) V S V « U U O BJ O « u u u u pLi J* ^ t II APPENDIX I Transfer Count The tables and diagrams here published are based on a transfer count made on Wednesday, JtHie 27, in co-operation with the Detroit United Railway. Hie conductors on tiie cars wete instructed to use special care in the lumdling of the transfer tickets and in the accurate punching of same. These transfer tickets were collected, sorted by routes, by five time periods and by direction. They were then further classified as single and double trans- fers. The counting anrl talnilation was then completed to define the numher and direction on each line and the total of the transfers on the entire system. The table on page 98 shows the total traffic, on each line, by classes of riders on that representative day, resulting in the classification of 1,225,057 total passengers. The discussion of the distribution of the transfer passengers assengers Per cent Number Number of passengers riding less than 1 mile .... Number of passengers riding between 1 and 2 miles . . Number of passengers riding between 2 and 3 miles. . Number of passengers riding between 3 and 4 miles . NumVer of passengers riding 1-ctwern 4 and .i m'les . Number of passengers riding between 5 and 6 miles . Number of passengers ridii% betwem 6 and 7 miles . l.V>2:?.:isi !M4(>, 2,!»60,000 i;«KM>o»» 700,000 41.477.:?S1 34.4 14,2')0,(KKi 2.05 miles 3.3 miles FORT LINE Actual Number of Passengers on Surface i.inc Estimated Rapid Transit Passei^>etB Per cent Number Number of passengers riding less than 1 mile . Number of passengers riding between 1 and 2 miles . Number of passengers riding between 2 and 3 miles . . Number of passengers riding between 3 and 4 miks . Number of passengers riding between 4 and 6 miles . . Number of passengers riding between 5 and 6 miles . . Number of passengers riding between 6 and 7 miles . Number of passengers ridi^ over 7 miles ..... 4,s;V-'.iHi:? t),4r.ri.(KN) • 5,721 >,(K HI 3,02(MNH> 4;i46, 62 7(> 87 !I5 100 1,.V>0,(I,S,( K )( » 7,5S-',( H N 1 5,57S.(Hto 5,132, 1,«52,000 8 24 45 62 76 87 m 100 2,4.H(»,(KHt 4,1 is( »,(Ki(» 4,G«il 1,000 4,240,000 4,4f<( 1,(100 :sSU(M)00 l.»52,000 6l,2:'.7,2»M 8.26 miles 51.2 ... 2fi,:'.22,()iKi 4.5 miles 105 IdCHiaJIN-^IRATIOT LINE Actual Number of Passengers on Surface Line Estimated Rapid Transit Passengers Per cent Number Number of pammgfim tU&Mtg hm than 1 mile Number of pmrnafjin ridiiiv betweco 1 and 2 m3m . . Number of pamtngm riding between 2 and 3 miiea . . Number of passengers riding between 3 and 4 miles . . Number of passengers riding between 4 and 5 miles . . Number of passengers riding between o and 6 miles Number of passengers riding between 6 and 7 miles . . fiwiriicr of pMMiitn liifiBf over 7 wHn ....... 8t901.452 11,488,000 ll^HMioo 9,902,000 8,380,000 5,904,000 1,120,000 2396300 8 24 45 76 87 95 100 710,000 2.710.000 8360300 «»150,000 6360,000 5,140,000 1.030,000 8308300 59,261,452 3.11 miles • • • 29306^000 422 miles WOODWARD AVE. LINE Actual Number of Passengers on Surface Estimated Rapid Transit Passengers Per ocni Nimlier Nnmbtr of p^wfprr^ tHkag leas than 1 mile .... Number of paaseufers riding betireen 1 and 2 miles . . Number of passengers riding between 2 and 3 miles . . Number of passengers ridint; between 3 and 4 miles . . Number of passengers riding between 4 and 5 miles . . Number of passeng^ riding between 5 and 6 miles . . Number dt pmamtgmiMag l»tween 6 and ftM mto . Mumncr 01 putnfgBm nowi over miies • . . . . 11343339 HO8O3OO 11300300 10360,000 7,42(\0(X) 7300,000 2300,000 400,0!t,370 5,074,229 14310^ 2,298,146 618364 2.640362 267306 80307 286338 1,690,741 764,770 27,721,424 S436M16 838,482 .502,887 20,116,558 9I.77«372 197,116 121,170 2,788,608 3375338 22,709 21,135 295,925 430^746 4,425,432 1,151,803 15,055,605 10,400315 2,3!Hi,452 1,145,829 11,281,644 7308318 379,116 195,111 1,602355 1383307 43,045 13384 173.930 130365 Myrtle . 4M01,130 0 50,436,332 7325,279 16,026359 90^08320 0 37,114,692 5381.713 12376378 4,048,-565 0 4,536.466 800361 2,092,753 417.138 0 ;j04,759 92371 222.681 Springwells Tnimoidl Woodwaid 1,523,794 7,049,226 1,443,829 55,207,827 943,9«»2 4,492, 10i» 712,61(t 41,543,391 2(58,078 600,191 118,546 5,330,709 28,222 75.505 12,225 55fl,21!» 344310390 3367312 107 anaumm sTArancs or rm iMmm umtSD railway 191« Name of Line Car Miles Car Hours 32,431, 1»5 8,810,687 4M77,!»1 23,^47,086 i 6,373,988 17.77iM>18 2.582,987 (595,190 3.201.2U3 299,354 94,739 366.738 Puiot-Thinl Sc 4,756,569 1,751,889 32,756,003 8»,240,273 3,133,570 1,560,564 24,1(M»,853 28,039,417 463,556 198,30;) 3,1 58,7 li> 4,15(V376 57,292 27,058 342,218 454,702 Grand Belt Grosse Pmnte '. . HamilttNl 1,1«4,56S! 20,o:«,:«8 12,099,-582 4.252.484 1,190,006 8,243,(534 667,470 2,008,482 l,247,9tH> 744122 16,179 217,662 ■ 151,440 Icfferaoii . • Myrtk 60,072,693 78.029 50.261,462 iBjmm 37,120,393 29,065 43,068.565 5.888,567 4,699,912 21,679 5.287.001 08.757 2.284t581 515,199 4379 599,726 97,603 247.446 UBflflflnVtMi .... Victor ■ WoodiNHid 1,880,908 7346.271 1.890,866 fl8.0ft3,539 ijoas.403 5,466,470 916,157 51,528,693 309.749 621,889 124,513 6,771,293 34,973 80,259 12,453 775,075 417.780^44 1 1 292.M3.741 39.541^ 4.458.600 108 APPENDIX IV D. U. R. Operated Trackage, 1901 to 1916 A tabulated statement of the surface lines in the City of Detroit is given here, showing the increase by years in the length of the operated tradcage of the system. The data are from 1901 to 1916. inclusive, giving an average increase per annum of 3 302 nules of single track. It will be noted that 6 miks of single track is added each year to the system in the estimates in this Report. Thus the added facilities oontemplated in the building program are on a moie liberal scale than those provided for up to the i»esent LENGTH OF SINGLE TRACK OF CITY LINES DETROIT UNITED RAILWAY Year Length of Stiirie Track MOm* Increase Over ^ FEevious Year t Year Ivcngth of Single Track Increase Over Previous Year Miitt 1 1901 17^563 1900 186u816 .082 1 1«02 177.545 1010 187.884 2J068 1008 17S.SS(» 1.335 1911 192.670 4.780 im 18(UM3 1.313 1912 2.8(ies 21,000.00 ■p^tiWg.fa^, iSSooS Sewer construction . uo^mmi Subway from Adams Street to North of Grand Boulevard, 2.56 miles Double track comtmctioii •^'t^^ SSS S Fhre stations 2&SSSSS Sewer construction WIMJwWW Overhead Railway from Grand Boulevard to Manchester Avenue, 3 miles Solid deck construction Six Stations • • ^'S22S2 Grand Boulevard portal 322s2X iMd cstile fiOMWlW ii78,ooaoo 300,000.00 IJMNMXIQlOO 2,490,|QOQuOO Railroad construction total ^-^^'SSS 22 lA^ ior Cootiugcocics and Engineenng i,.j«9,uou.uu 110,647,00000 Interest during construction » 1,082,000.00 Total cost 911,699,000.00 Michigan-Gratiot Route 1. Subway Under Beech- Adams Streets, from National Avenue to Hastings Street, 1.60 miles Double track construction $3,120,000.00 Three stations , 225,000.00 One transfer station 150,000.00 Heal estate . 200,000.00 2. Overhead Railway on Private Right-of- way, Along Michigan Avenue, 5 miles Solid deck structure ............ $2,750,000.00 Eight stations 320,000.00 Right-of-ws^ 800,000.00 Portal at National Avenue TOyOOOuOO 3. Overhead Railway on Gratiot and Forest Avenues from Hastings Street to Ste. Oair Heights, 4.75 miles Solid deck construction , , * . ♦ 2.600,000.00 Eight stations ............... 320,000.00 Portal at Hastings Street TOjOOOiW 15% for Gmtingencies and ^igineering $3,095,000.00 3,940,000.00 Interest during construction Total cost . . 2M00OJ0O itomMiojQo 1,504^.00 $12,219,000.00 1,231,000.00 fl3,45Q,O00ilU 115 1. Subway from Cadillac Square under Con- gress Street to St. Antoine Street, 0.33 mifc Dovklk trade comtniction *?^'SnS 2. Subway from Woodward Avenue under Fort Stwet to 3rd Avenue, 0.5 mik Bubble tndc co mln i di on n>150,000.00 OnTitiSw ^^^^ 100,000.00 1^,000.00 3. Overhead Railway on Fort Street from Third Avenue to Woodmcre AvcBne, 4.5 miles Solid «leck coastrnctioii . •''S'SS S Seven stations • • ^SfiSrSl n nm nnn nil Portal at Third Avenue lymM 4. Overhead Railway on Private Right-of- way, Between Congress and Fort Streets, from St Antoine to Townsend Avenue, Thence on Jeierson Avientie to City Limits Solid deck constmctkm Ten stationi 400,000.00 i^^?^ 3HP0O.0O 4,044,000.00 $8374,00000 11% for Contingencies and Enginecriai .......... 1,320,000.00 110.194,000.00 .. .... _ ji,. . . . ■■ .. — 1 flBAflBBfln imviniGPoii ,•»•••* «••**• • •^■"i""""""' Total cost tlUOMOWW ADDITIONS AND BXTBNSiONS AFTER COMPLETION OP INITIAL BUILDING PROGSAM Ovinfaead Raihvi^ 1. Woodward Avenue Extension from Man- chester Avenue, NcMrth 6 miles of donUe txatk ooottmctioii $3,300,000.00 lOstatioiit 400,000.00 $3,700,000.00 2. Gratiot Avenue Ejcteosicm 4% miles of double tndc constnictioii 2,500j000.€0 7 stations 280.000100 2,780,000.00 3. Forest Avenue Extension S)i niles of donUe track cooftriKtioit 2jmjOOOM ft statioiis atOyOOftjOO aWff»j'» 4. Fort Street Extension miles of double track construction l^XNMlOOilO S itatioiii 80.000.00 1 j 5. Michigan Avenue Extension % mile of double track constmctkMi a0O.OOO i » 1 statkm lOflOOm 6. Grand River Extension 3% miles of dooMa trade comt n iction ...... IjBOQyOOOiW AstatMMii iaOjOOO.00 1.860j000.00 7. Jos. Campau, Grand Boulevard and Ltver- nois Route A. Grand Boulevard Subway 2% miles of construction . 4.125,000.00 B. Jos. Campau Overhead Extension 4% miles of douUe track construction ^SOOyBBQuOO 7 stations MyBOOtOO S,78IMMMMN» C. Livernois Overhead Extension 4)i nules of dotrfde track constmctioii ....... 2.500,000^0 7 statkMs MMNiaOO 2.780.00Qj|» $21,745,000.00 Add for real estate and transfer statioiis 3,500,000.00 ]fl% for Contingencies and Eni^BeeriQf 3.750,000.00 IttteMst during eoMtnction SiTVXMMKMiO Total coal 117 Mjpwmmm vii WaafHopMrnm Statistics The table here published gives the name of the industrial establishments and department stores in Detroit having employed in 1916 more than 500 per- sons. The number of workers employed in each of these places is stated for the years 1914 and 1916, indicating the rapid growth- of the industries in al- most cvcfy case. Most of these establishments are sho>wn on diagram, page 39, and can be identified by the location given in the tidble. The data from which the table was cominled were fnmished by the De- ptftment of Labor of the State of Michigaa MCTOitlBS MMD 8T0US IN DBTSOIT BMPMYINO 0¥BK SUM WOKKKICB NO. OF WORKOtt MMMM tOCATION 1916 1914 Foffil Motor Compwr HigM«id Ptak tMM IW Pidord Motor CMSpav* - Blvd. & Mc Bdt Liiw 10,693 4,387 Dodge Brothers Hamtramck 9,781 3,152 Stadcbaker Corporation 105 Piquette . . ...... J gajO 6,616 StnddMlter Corporation Plant 3, Clarke & W. Jeff.... j Chalmers Motor Car Company E. Jeff. & New Belt Line 5,078 2,454 CadUUc Motor Car Company Factory and General Offices, Cast ft Ara- sterdam 3.984 5,057 Morgan & Wright Foot of Bellevue 3,603 2,677 Hudson Motor Car Company Jefferson & Connors Road 3^56 1,005 Tinktn-Detrait Asdi Goapmgr Cbik ft CMk .... 8,029 1,483 Bwnii^ts, A. M. Conptlif Sacond & Burroughs 2^04 2j0i3 Detroit Edison Company W Wash. Blvd. at State.... 2,832 .... Northway Motor ft Mfg. Ca M«yl>ery Gd ft G T. RR. 1^ 1^1 •MidiigMi State Td. Cft 20 Clifford at Wash. Blvd 2,533 2,808 Parke-Davis & Company 743 Atwater at McDougall 2,388 2,125 Continental Motors Co...., 3001 E. Jeff, and Bezner 2,152 1,041 Detroit Co|i. ft Brass Rollg. MiIb...W Oailc Aw. bdow WabMh.... 3,008 IfiU mOuey Wheel Company 1208 to 1250 Military Ave 2,041 American Car & Fdy. Co Russell & Ferry Pen. Car. Dpt 1,978 .... Maxwell Motor Company Oakland Avenue l,tM 1,1V4 Solvv Process Gonqmr."- Delray 1,691 IJVf QMlinac Motor Car Ca No. 3. Fdy. & Sht. Metol Dept, 500 TronlQr. . . 1,607 ... Wilson Body Co. C R. ....Clay and G. T. RR. 1,635 829 liaison Co. J. L. (Dept Store).... Gratiot ft Farmer 1,4M 113 Htq>p Motor Our Corporation Milwaukee & Mt. Elliott... 1,406 111 Timken-Detroit Axle Co. No. 3 Waterloo & Detroit RR 1,356 .... Hayes Mfg. Co. Maybury Gd. & G. T. RR 1,347 340 Detroit City Gas Coaqtaiqr* CHiord ft Washtagtoa I,31i 1,164 Detroit Screw Works Franklin & Riopelle 1,287 370 Murphy Chair Company.., D. G..H. ft Milwaukee Junct 1,3SS 04t Newcomb-Endicott Co. Dpt Store... 190 Woodward Avcmie 1,3IB 1.383 IIS HO. OF WORKERS NAME LOCATION 1916 1914 Michigan Malleable Iron Co .Gould, Anderson ft Crossly l.l«9 803 Aluminum Castings Co ....Chene & Finley 1.151 358 - Detroit Steel Products Co 2250 E. Gd. Blvd. & Griff en 1,149 586 Cadillac Motor Car Co. No. 3 Body & Trimmings Depts., 900 W. Fort and 23rd 1,051 - Crowley-Milner Co. Dept. Store Gratiot. Farmer. Monroe & Library 1,031 TBS Briggs Mfg. Co. (Plant A) Hamtramck, Leuschner Av. & G. T. RR. 1,019 990 Michigaa Alkali Co. ...Village of Ford 1^2 922 -American Lady Corset Co West Fort & 6th 1,003 833 Great Lakes Engineering Wks River Rouge, foot of Rivard 983 907 *- Detroit Stove Works 1320-1360 E. Jefferson Ave 883 785 Saxon Motor Company Beau fait & Waterloo 930 220 Anderson Electric Car Co Clay & Riopelle 915 600 Detroit Lubricator Company 1178 Trumbull & G. T. RR 904 420 - Peninstilar Stove Company W. Fort 8th ft lOtli 884 907 Herbert Mfg. Ca 576 Kirby West 867 928 — Stearns & Co Frederick. Jefferson & Bellevue 853 929 - Scotten, DiUon Company 1147 to 1161 W. Fort 847 1,361 ^ Ford Motor Co. (Servke Sta.) 15G0 Woodward ft Boulevard 844 .... -Buhl Malleable Company Adair ft Wight 843 625 San Telmo Cigar Mfg. Co. 510 E. Forest Ave. 838 1.184 Diamond Mfg. Co Artillery ft Muster 799 321 - Gen'l Aluminum & Brass Mfg. Co.. . .East Grd. Blvd. & St Aldmi 741 431 Michigan Copper & Brass Ca 1611 W. Jeff. Avenue 734 315 - Michigan Stove Co 1022 E. Jeff. Avenue & Adair 700 874 - Fischer Qosed Body Co. (Bch) Milwaukee & Deqntndre ) , o-i 90^- Fischer Closed Body Co. (Bch) Harper & Hastings J - Paige-Detroit Motor Car Co McKinstry & W. Fort 656 294 ~ Detroit Creamery Company Cass ft Grand Rirer 650 307 * Qayton & Lambert Mfg. Co. 201 Piquette Ave., Trombley & Beaubien. 016 87 Michigan Statiipiwg Con^any 7S0 Bellevue, Mack Ave. and outer Belt Line 046 327 Wayne Cigar Company.. 909 St. Aubin ft East Fomt 625 996 American Blower Company 1400 Russell 621 573 Edmund & Jones Mfg. Co 436 Lawton Ave. 617 463 Mereter. J. A 243 Beecher * . 007 0 Pingree Co., The 102-104 Jefferson 001 530 Pennsylvania Salt Company Wyandotte SBS 314 ^ National Can Company .Mihrankee. Jet Gd. Blvd. ft D. ft M. RR. 381 401 Detroit Wire Spring Compaiqr Russell & Westminster Ave 880 236 - Acme White Lead & Color Wks Hamtramck, 1740 St Aubin & M. C. RR. 573 5M Michigan Lubricator Company 661 Beaubien 501 438 Finck ft Co.. W. M 1100.1174 Gratiot 550 573 Detroit Forging Co 130 Mt Elliott Avenue SSO 386 Winkley Company 806 West Warren 554 283 "^Long Mfg. Company East Grd. Blvd. & Cameron Ave 549 384 Chicago Pneumatic Tool Co Seomd & Amsterdam 641 380 Russell Wheel & Fdy. Co Chene & Belt Line RR. 384 888 Detroit Pressed Steel Co 1800 Mt Elliott Ave. 532 188 DetnNt Sted Castings Co 1243 Michigan Avenue SB 185 Semet-Solvay Company West Jeff. & Solvay 515 HO Briscoe Mfg. Company 1443 Woodward Av. & Baltimore 515 510 Larned, Carter Co Cor. 8th, Howard & Abbott 514 515 Detroit l%q> Building Co. Wyuidotte, foot of Octoaas 513 316 Fairview Fdy. Company .....Foot of Vanilla , 808 BOB - Detroit-Princess Mfg. Co 207 East Larned 801 711 119 GENERAL INDEX Annual: operatmg statistics operated trackage Aim of Detroit . . B Bonds: issued by city . issiwd by compaiqr fcttrcnwnt of 107, lOB . . 109 . . 19 69, 71, 79, 90 . 71, 79 . . . ea, 89 commencement of rapid transit, investment per capita . . investment ratio operatins ratio population rapid transit types .... 19 89 54 m 80 17 Boilding: permits procram, rapid transit program, curtailed . . 34. 42. Capitalization 71, Charter, Detroit Chicago: commencement of rapid transit . investment per capita population of ...... fiS, rapid transit types traffic density Commission control ive Cost of: elevated 55, 56, 63, > • 51, right of wiQT service . . Cost Estimates 49 SO 70 94 19 89 89 47 27 94 67 62 82 47 54 113 Crosatown Line: transit traffic transfer tn^ . 38. 105 Detroit: WMm area of t9 building permits ....... 38 charter debt limit ... 68^ 70. 94 deficit from Plan C 90 factory location . . . . . 38, 118 investment per capita 89 population growth 17, 37 Detroit United Railway: operating statistics operated tradcage . 107. 108 . . 100 Diagmna: area of Detroit car miles per hour didmrsement for investment . . . disposition of operating revemie distribution of population .... equity in investment ..... 8 r o w ti l of population and trafiic . . initial building program .... location of employment .... median lines of population . . . overhead raiHray on street overhead railway on private rig^- of-way passengers per annum passengers per mile of track . . . passengers per car mile percentage of total passengers using rapid transit . . . population by mile zones population prediction . right-of-way appraisal . revenue ri^ per capita rush hour traffic . subway transfer station transfer by tines . . . transfer by mile of track transfer on Woodward Ave. . . . transfer on Michigan-Gratiot Ave. transfer on Jefferaon'Grand Siver Ave. 90 65 86 87 28 48 89 36 44 45 96 96 66 104 18 60 46 61 100 101 for 38^ 118 71, 77 131 w Fiactofy locattoii , M Fare: m, m on ncf'VKC W incresse of .11 single, wnlonn ..... Si, W Financing: •• cost of rapid transit ttnictUfV . . 118 passengers carried ...... 27 transit traSc . M, lOS ra^ trannt on . 41 traffic density 2? tfansfer traffic W O Grand Boulevard: cost of rapid transit stf ' nctMr e . . 117 cost of rapid transit structure . . 117 on ^1 Kuiin oi • *»t dMHt and loug' Interest rate 69, 72, 83 J J^erson Avcnot: oMt of rapid traaril stradnrc . . IM' passengers carried ...... 27 fiqiid transit on 41 n^id transit traiBc . . . . 31, IW 27 ■ier 'traffic 30 mm License lor If edi«B Hues HO Michigan-Gratiot Avenue: cost of rapid transit strudive . . US passengers carried 27 rapid transit on . . . . . .41 transit traffic .... 33, 108 traffic dcMsllir 27 iruwicr trauK ....... w M New York: population of ....... 58 rapid transit tjrpes 47 subway service 33 • • ♦ ' • • • * SET o Operating expenses ...... 57 Operating incooM .... 57, 72, 81 Operating ratio 57, 66 Boston . 88 Broo kl y n 38 Operating revenue . . 57. 68, 83, 72. 81 Operating statistics 107, 108 Overhead Railwif : cost of . , . 3i typeS' of ..,..»»•» 47 conqiaiqr ....... 67 municipal 67, 70 partaer^ip 87 P , . 17, 87, 8i commencemrnt of n^d transit . . 13 population of ....... 38 PopnlatiM of Dofvoit: hy mile loiics ....... 17 enqtlojrment of . * . . • . . 38 densi^ of ..... 19, 21, 37 estimate of future . . . . 21, 58, 110 growth of ....... 17, 37 of 40 of It .iat7l; 74.7% 3B GENERAL INDEX 123 ra