Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-04-27
|UES MODIFY
CRITICISMS OF
TRANSIT PACT
Potter Says Objections Num-
Der Only Five-May Mean
Harmony
BUSINESS MEN DIFFER
chestnut Association Favors
' Taylor and Lease-United
Starts Work for Twining

# Colonel sheldon Potter, one of the city
& Representatives the Transit Company's
y board OF directors, gave out a signed state
ment today in which he said that discussion
Y of the proposed transit lease has developed
Z hve main objections to the company's pro-
posal.
Since Transit Director Twining in his an
alysis of the lease named twenty-five ma
3or defects the statement from Mr.. Potter
} who is close both 20 Mayor Smith and
/. Director Twning. that there are now only
hve main objections indicates that har-
< mony between the city and company may
be near at hand
s LITTLE HARMONY
That there is little harmony among the
4 city's business organizations over the
z merits of the lease, however, was made
= clear by the action late yesterday of the
Z board of directors of the Chestnut street
Business Mems Association and the United
Business Mems Association, composed of
/, more than seventy different organizations
The board of directors of the Chestnut
Street Association gave their unqualified
Endorsement to the Philadelphia Rapid
Transit Company's proposal in its present
form. thereby backing squa-~-y the position
OF A. Merritt Taylor, former Transit Di-
rector, who has urged the prompt ratifiCa-
tion of the lease.
The United Business Mems Association
In resolutions condemned the lease. de-
nounced the 1907 contract and launched a
movement to send 1000 business men to
Harrisburg May S to cr:nand that the
4 Legislature pass the pcn-ing transit bills
which Director Twinng holds will place
= the city in position to obtain more lib
\ oral lease with the transit company
81 While the business men We're planning
% demonstrate to the Legislature the do
:. n.and of Philadelphia or tho passage Of
the bills the Philadelphia Rapid Transit
Company was taking aCtlve steps TO resist
the passage of at least part OF the leEis-
+ lation Every member of the Senate and
House at Harrisburg received letters from
transit company interests vocing specific
opposition to the Hecht eminent domain"
I'LL and TO the Hecht constitutional amend
nent making financially possible the cmi-
Y nent domain measure
The statement of Colonel Potter on the
oSffansit lease follows:
\ II know of nothing which may be called
news in the development of the rapid tram
sit situation. l find in coming in contact
with the public and with the public Off
cials. that discussion has developed five
4 main objections to the agreement offered
by the Rapid Transit Company,
tN 1.-THE first is that the company has so
carefully protected itself from the making
Y of extensions that IL would seem impossi-
BILE for the city ever TO require it to build
feeding lines for the development OF the
Territory adjacent to the high-speed lines.
& The company has even protected itself
& against the operation of such lines II built
by the city. As no extensions have been
4 built during the life of the present con-
x tract and as there has been a constant de-
Y fnland for city development by the building
n of extensions, a provision under which the
4 present policy can he easily perpetuated anc
y the usefulness of the high-speed lines thereby
kAgreatly curtailed does not seem to he popu'
lar This is perhaps the most difficult
x objection to handle, for it ought TO be
4, obvious that in seeking an operator 1t can
u .e< 1a fnd hnt
B willing to undertake that which might rea
sonably be expected to result in loss. tu
3 TO so bind the city that a reasonable chance
of profit would not he sufficient upon whict
TO compel extensions Is to virtually declare
4 that the company will make no extensions
unless it is first demonstrated that those ex
tensions will Immediately pay a proht or
\ the capital invested. and the success OF thu
system would thus be jeopardized
FINANCING OF EQUIPMENT
'"The second objection is to the finan
cling of the equipment of the road Cndel
4 the proposed contract ii can only b.
financed by the company which reserves TN
4 right to. finance it upon loans bearing
per cent interest The interest, as wei
as the sinking fund charges of I per cent
\ are payable out of the net earnings. Th
city borrows money upon It's credit at
per cent and would, therefore, be able Il
K borrow and sink its loan at per cent
against per cent paid upon the com
pany's financing. 1t is, therefore, though
that right should be reserved by the cit!
"A to do it's own financing of the equpmen
x Of the road
The third objection bears some relation
TO the second objection. II the compan,
Z creates sinking fund out of net earning
Z, TO pay for It, that equipment having beer
paid for out of the sinking fund. TIL,