Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-01-31

Report that stockholders Of the Union
Traction Company will accept the Philadel-
phia Rapid Transit Company proposition to
make their stock full paid has no foundation
in fact, according to officials in the older
corporation.
Rumor, which gained circulation in fnan-
cial centers today, had ii that the Union
Traction stockholders had agreed to pay in
the $3.50 per share remaining unpaid upon
their holdings thus providing the Phladcl-
phia Rapid Transit Company with $500
600 available for additions and other capital
requirements in its NEGOTIATIONS with the
city for the Taylor plan high-speed lines
In return the Union Traction shareholders
were to receive 81 on the $50 par value of
the full-pad stock instead OF So at present
upon each $3.50 invested
Officers of the Union Traction were said
to have assured the Rapid Transit Com
pany of the plan by which the assessment
would be called
officers and directors of the Union Trac-
tion Company today expressed the opinion
that the story had its origin in the brain of
financial interests seeking to depress the
value of the Union Traction Company
stock for purposes Of speculation.
James II. Fay. a director of Union Trac-
ton and one of its heaviest holders. at his
home in Pelham, said There is no such
agreement, and as a member of the board
and a stockholder in Union Traction | am
in position to speak with authority on
what is going on. You cannot make it too
emphatic that no such agreement has been
reached or even discussed at our meetings
There has been no session of the Union
Traction board since our annual meeting
last fall when the stockholders also met
The subject was not even mentioned at
that time nor since
81 do not know where such rumors
emanuate but they must .ome from the
hrl ~ Of ~
or are started by somebody with "A desire
to depress the stock for his own profit
As to this latest report. il is absolutely
untrue. SO far as ] know. there IS no
intention to call a meeting of the Union
Traction stockholders for any purpose. and
have not been asked to consent to any
agreement with the Philadelphia Rapid
Transit Company"
Union Traction. which closed yesterday
at 46ss. opened today at 46
at is all hot air" said Charles T.. Heed.
vice president of tie Union Traction Com
pany, today, at his home in Oak Lane
"G never heard about this proposition and
1t was never sCussed at any of our meet
ings The last meeting took place in De-
cember. and there wasn't any discussion
along the line mentioned in a newspaper
today"
Mr. Heeds reference was to an article
in morning newspaper, in which various
terms of the rumored agreement were set
forth Negotiations, il was declared were
completed, but the actual payment of as
sessments was not to he made until after
Councils had passed upon the leasing ordi-
nance submitted by the Philadelphia Rand
Trancit Company to the city.
William Hancock. one Of the city repre-
sentatives on the board of directors of the
Rapid Transit Company, has aligned him
self with Sheldon Potter, who attacked the
lease on Monday. Mr. Hancock
in issuing a statement from Atlantic CITY
also assails the company's offer and advises
caution and delay in ratfying the terms
OF the agreement until the analysis by hi
rector Twining and the city's consulting
engineers is finished
Frank l.. Ford of Ford Bacon & Davis
the experts consulted by Mr. Twining is
expected TO visit Philadelphia tomorrow
for a conference with the director
Under no circumstances is it likely that
the agreement will be brought up in Coun
ellis tomorrow. Mayor Smith has declared
he wishes no undue haste in jamming legls-
laton through Councils. At the office of
the Department Of city Transit IL was
said today that the Directors analysis would
hardly be completed for several weeks. and
until the experts report had been received
and dgested it was unlikely that the Mavor
and director would feel properly e0uipped
to take up the question with Councils.
The Mayor plans TO leave the city on
of next week for southern t,iD
and it is said that he may not feel pre-
pared TO submit his views on the transit
agreement to Councils until his return II
is hoped by Director TwininE that the ex-
perts analysis may be received in time to
be presented to the Mayor before he leaves