Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-05-29

pay out Of Its earnings all its Fixed charges
mlcluding the rentals and fixed charges Of
,ne underlying street railway companies in
M Mseiesl on All new money provided for inn
prone,nents ,,r,'eI with the consent and the APP
proNal OF the city of PHILADELPHIA and 6
per cent cumulative dividends on It's actu-
any pald IN capital stock after which the
clty was to receive one-half Of the surplus
earnings T'N'
nder this contract the city had ex-
pressly agreed that It would not exercise
any right to take over any Of the properties
making up the Rapid Transit system. After
zen years OF operation under this contract
u now becomes necessary as a result Of the
Guys decision to construct additional tran
su facilities to amend in some respects the
relations between the parties for apart
from any contracted rights in the matter
II has been recognized by every one that the
citizens can be best served N the new city
lines are operated in conjunction with the
present system Of the Philadelphia Rapid
Transit Company.
with this object in yiev tho citv ~
Philadelphia and the Philadelphia Rapid
Transit Company have been negotiating an
operating contract and an amendment Of the
lsoi contract In all Of which negotiations
the FAIRNESS and necessity of providing for
the company's fixed charges as approved
under the 1907 contract was recognized.
while these negotiations were pending
| there were introduced into the Legislature
the bills now before this committee, with
| the express object of relieving the city
| from the obligations Of its contract of
| 1907
From our point Of view the unfairness
/ or these bills must be apparent when YOU
consider that the city of Philadelphia i'm ef
| iect a partner under the 9O7 contract with
| the Philadelphia Rapid Transit Company
| II now seeking through their instru
-, ole
| tract IN order to give competitive sys-
| tenn the use and benefit Of the downtown
| terminals and the surface feeder lines OF
/ the Philadelphia Rapid Transit Company
| either by condcmning them outright on
permitting their joint use Of the same
! by the competition by means Of through
| routing or free transfers with the conse,
quent confscation of the earnings maj
| the Philadelphia Rapid Transit Company
! mas developed under the agreement eI
| tered INTO with the city ten years ago.
| Il leave 1t to the attorneys to discus,
| the legal effect Of the proposed legislation
! out ] may be permitted to say as a Law
| man that | consider the breaking of on,
contract a poor foundation on which t,
| build a new one"
! William N Trinkle. former counsel fo
the state Public Service Commission. VIII
| was retained by the company TO argu
| against the bills declared that under tn
| provisions Of the State constitution tn
jurisdiction over municipal street railway
| was logically vested in the local Legislative
| bodies and the pending bills would depriv
the local authorities OF their rightfu
| powers, he argued, and would be i'm direc
! violation Of the implied conditions of tn
1907 contract.
TO pass these bills" he asserted ",youl
| be to regard this contract as Germany di
her treaties with Belgium-as mere scrap
| of paper"
| tie sounded warning note at the sam
| tlme that should the city attempt to exercis
lts new powers of SENTIMENT domain in IN
event OF the passage Of the Hecht bills. III
companies affected would carry their frl
on the constitutionality Of the measures b
tar as the supreme Court Of the Unite
States
After ALL Mr.. Trinke concluded the,
bllls, should you pass them and | take
you won't, you will have the entire trans
situation in Philadelphia tied up with en-,
less litigation for years to come. We wal
TO get somewhere but if these measur,
pass we will get nowhere"
Supporting Ellis Ames Ballard. chief
counsel of the Transit Company, were fo
mer Judge James Gay Gordon, william
| Trinkle, of former Attorney General John
Bells office, former general counsel of :,
State Public Service Commission, and Nj
liam Schaffer, of Harrisburg where he
legal representative of the Pennsvlvan