Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-08-24
TRANSIT CONTRACT
MUST BE FILLED
Mayor Tells McNichol City
Can't Grant Concessions
to Bidders
SENATOR MAKES PLEA
Objects to Penalties Due to Pos
sible Scarcity Of Labor
or Material

'The city has no legal right to grant any
concessions to the contractors who bid or
the work for the high-speed transit sys.
tenn"
A statement to this effect was made late
this afternoon by Mayor Smith. following
separate conferences with Senator Nc
Nichol, whose Keystone state Construction
Company bid on subway work to the extent
f. OF $40, 900 900, and Transit Director Twin
Ing.
The Mayor conferred with the Senator
FIRST. Senator McNchol asked that all
penalties for nonfulhllment of contracts
due to scarcity of labor or OF material he
eliminated. Mayor Smith announced his
decision after his conference with Mr.. Twin
ing and the latter voiced the same opinion.
Senator McNichol. on leaving the Mayor g
office. Immediately conferred with Jerome
il. Louchhem. president OF the Keystone
Company They expect to decide early
tonight whether they will sign the contracts.
Asked what attitude the Wares, who also
hold many of the contracts for the high
speed systems. would take. the Mayor said
n one contractor signs all the contractors
will sign.
sign the contracts 1t means holding up Of
the subway work for years
The Keystone Company has four con-
tracts, two for parts of the delivery loop
and two for the Broad street subway.
While the United Business Mems AS
ISOLATION announced that It will remain
neutral In the transit lease fight until the
hearing On September T. it virtually is GER
tain that II will fight tooth and nail'
against the provision which would place the
future transit development OF the city in
the hands of Il board of three engineers TO
be selected by the Mayor and the p. r, T.
Wholesale opposition to the proposed
board was expressed by members Cf the
law and transportation committee Of the
association. It was said that the provision
of the board would open the way for
political misuse of the transit program.
The committee met in secret session to
discuss the lease with Director Twinng
yesterday. The Director defended the board
idea and assured his audience that II would
be composed of competent engineers and not
politicians.
When II came to answering questions, Mr..
Twining was asked II he did not think il
possible that men could be engineers and
politicians at the same time. No announce
ment was made as to his reply.
The action of the United Business Mems
Association followed in rapid succession an
emphatic denunciation by the Allied Bust.
ness Mems Association Of West Phila-
delphia.
Denouncing the lease as fatally defec-
tive" and decrying IL as "an outrage TO the
people of West Philadelphia" the associa-
tion issued a lengthy statement and an
nounced that IT would stand by A. Merritt
Taylor and fight to the finish.
HANCOCK FAvORS LEASE
Hancock, one of the city's representative
on the Rapid Transit Company's board
that the proposed lease would have his sup.
port He Is the first of the city representa-
tives to go definitely on record in this con-
necton
Mr.. Hancock expressed surprise that any
citizen or organization should assal Tran
sit Director Twining without giving careful
study. to the new lease.
"The new lease" he said, 'fs in many
>oints more advantageous than the old
he city Is assured Of interest and sinking
und charges before the company gets any
hing Under the old lease the company
cot its money first, despite the fact tina,
he city is investing $780, 600 in transit
"As to equipment. my opinion is that il
better For the city to provide it at pei
ent Interest than for the company to pay
per cent on an equipment loan. AS to the
are. it is about time the true facts are
tated. No sane man believes that uni
rersal free transfers can be given with q
ive-cent fare without large deficit"
In conclusion Mr.. Hancock said he be
.ieved the people were going 10 get a goo,
ease along the lines of the agreement nov
before the city.
Mayor Smith will confer today with Sena
tor McNichol to discuss the concession!
which the subway contractors are askinl
owing to the increased cost Of materials
The Philadelphia Chamber of Commerce
has needed Director Twinng's plea that
local organizations defer action on the
lease until after the first public hearing
That body decided to join the ranks Of the
neutrals.
Director Twining answered this by saying
that II the car riders do not pay the charge
It will have to be loaded on to the shoulders
OF the taxpayers.
When asked last night to make an an
swer to the statement issued by Frank +
Mathers, vice president of the Allied Busi
ness Mems Association, and by John Nc
Garvey, Mayor Smith in referring TO the as
ISOLATION Is quoted as saying:
9 who are those people,"
MAY APPEAL TO PRESIDENT