Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-05-19
KLINE POSTPONES
TRANSIT HEARING
Senate Judiciary General
Chairman Anglers Mayor
With Announcement
SMITH WILL INVESTIGATE

/ u
again. The sudden change Of plans was
| announced in telegram to Mayor Smith !
| today from Senator Kline chairman of the !
| committee.
The telegram read
Traction hearing for next week post
/ poned." No explanation was offered and I
| no other date given.
MAYOR DGsPLEASEp
The Mayor very plainly expressed his
| dsplcasurc and announced that he would
| take steps az once to ascertain the reasons
for the change.
The telegram from Kline is very uu-
/ pleasant" he said. ~ am endcavoriug to
ascertain the reasons for postponement and.
II possible. to have the meeting regardless
NJ the presence or absence of Mr.. l(luc
II Is very necessary to get something done
at once on those transit bills. and Tuesday
would be an ideal day for the meeting.
Although the Mayor gave no hint that
he felt the Philadelphia Rapid Transit in
terests might he back Of the change, II is
known that the company has been using
evcry influence to defeat the pending meas
urcs and delay at this time would ~ we'll
! into its plans.
Transit Director Twiuing and the city
administration heads are awaiting compile
tion Of he audit of the books Of the phtla-
/ delphia Rapid Transit Company, being
, made by Lybrand, Ross Bros Muntgom-
, cry, expert accountants. as the next step
/ IN the development Of the transit situation.
o. The audit will show whether the re-
% ports Of the company that u is earning
o. per cent on the capital stock this year rep
p | resent the fair earnings, or whether 'his Q
per cent has been secured through sarr.-
4 nCing the standards Of service and main
tenance during tho last several years as
has frequently been intmated by oppo-
% n"uts Of the transit company's proposed
p lease
d Upon the result Of the audit the Transit
a department hopes to base, in part. its re-
huttal Of some Of the contentious made at
r the hearings before councils Committees on
n Finance and street Railways yesterday, by
e the company officials
Al STOTESBURY'S STAND
10 The one point upon which the company
r stood absolutely firm yesterday was that a
five per cent return on the capital stool, OF
70 ! $40, 1000 must be included in the lease
: II was upon this one point that the Stotos.
: bury management declared IT would either
- stand or fall and the refusal Of the city
to make the guaranteed preferential five
per cent T.. r. Stotcsbury declared, would
result in the resignation Of him and hi,
associates. and the immediate end Of tn,
present management Of the company
The officials Of the Transit Department
10 will not admit the fairness Of this pref
NJ ereutiaI however, even though the audit
AZ establishes beyond question the pei
- cent earnings this year after normal dcduc
n tions for renewals rcpacemcnts aud de
r. precautions.
The threatened resignation Of r. r
Stotcsbury from the management Of tn,
~ Rapid Transit Company, should IN" city
Nv not accept the compauys proposal for the
- lease Of the hiEh-speed lines, will moi
- silence the city's objections to the lease a.
'' the next public hearing, according to Mayo,
Smith.
MAYORS STATEMENT
When questioned concerning the subjcc
today the Mayor said:
II had known Of Mr.. Stotcsbury's in
II tentions for more than one week, and hi
statement was in no sense a surprise to city
officials We will go straight ahead will
out effort to find out what the people wish
- agree absolutely with the statemcn
u made yesterday at the first public hearint
that the CruN of the entire problem %
transit is n question Of the amount Of fare
II suggested the possibility Of the plal
put forward by Mr.. Ballard yesterday anC
which some have termed compromise
This plan provides for insertion in the leas
,d of a strict hVe-cent fare regulation, bu
oo provides for the city equipping the new
Ms, lines It is admitted that othe city cal
nd secure the money for such equipment
or least per cent cheaper than can the com
an pany
- not \ COMPROMISE
-, while this will protect citizens aganS
-, an arbitrary increase in fare at the WI
~ Of the company. it is not what might h
- | called a compromise. The company still
:" insists upon being guaranteed per cen
| upon total stock
AN engineers company officers and cit
lie officials agree that there is certain to be
ou deficit in the operation Of the lines upon
of | basis OF hve-cent fare and universal trans
gs fers The question now Centers upon wher
the money TO meet this deficit is 10 b
by | raised
nd "A six-cent fare would probably meet tn
difficulty. otherwise there must be gen
eral increase of taxation II fve-cept tare
are enforced. II is entirely up to the citizen
to settle this matter and ] shall be guide
n by their expression Of opinion"
~ The statement of the J. r. T's positio
regarding fares was made by Ellis Anne
C. Ballard, chief counsel for the company, !
response to questions by Chairman Can
ney Of Councils Committee on Finance
who presided at the public hearing yesicI
day. Mr. Ballard said:
en- "As far as the management uf the Phla
NJ dephia Rapid Transit Company is COZ
rs, cerned there is no doubt that II will be abl
o. to operate the high-speed lines as they ar
in completed and that earnings will never ia
rr below the 81, 500, 900 required for the stool
But II must have a protective lease whicl
as its credit is none too good, VIII enahI
nv it 10 borrow $40,0OO,OOO as needed IN
III, bankers concerned in this proposition di
"a, not feel that this could be done unless m
OF company could say that when fares wer
a' sDo low they wculd he increased at Will.
~ WOULD REwRITE CLAUSE
mt ut has been said that the city could say
. per cent by equipping the lines. If the cit
in wants to equip the lines the company wi
Of rewrite the clause in the lease dealing wit
tie fares and it will assume the fixed charges o
'ce the equipment bonds II YOU will do that "
will go to the Public Service Commission fC
M decisions as to fare charges
In discussing the earnings the compan
is reporting Transit Director Twining tC
me day called it remarkable that this compan
ir- a, &c ',yatar- Jagged condition" CouId ear
OOI q nor can't when the traction companies /
of
au --