Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-05-22

itself accept.
FOR OUTSIDE LEAVE
The aslus bill" said It's author. 'is de-
signed to enable the citizens OF Philadelphia
10 secure reasonable joint service and point |
rates II further Investigation shows that II |
Is impractical, In view OF the +. r. T's |
heaNy obligations TO its subsidiary COM |
panies, and the magnitude Of the transit |
facilities which the city proposes to- con- |
struct, TO agree upon "A lease the terms of |
which will be fair alike TO the city and to
the company
Edward A. Noppel, president Of the United |
business Mems Association, outlined the op- |
sition OF the seventy organizations COM
prising the United as follows:
First OF all, we wish TO say that our
attitude is in no sense opposed TO any par
ucular corporation or any so-Callcd vested
interests, but where these interests con-
fict with the rights OF the public then We
feel that the rights Of the citizens Of Phila-
dephla are paramount and wish 10 place
ourselves on record as favorng the citizen
as against any corporation.
we realize that the merits or demerits
Of the proposed lease Of the Philadelphia
Rapid Transit Company are not before this
committee, but they are so closely inter
woven one with the other as To- make It al
most impossible to discuss one without dis
cussiug the other
We feel that the bills now before your
committee are Of such vital interest 10 the
citizens Of Philadelphia that they deserve
your favorable consideration because of the
absolute necessity of some such power
vested with the authorities Of the city OF
Philadelphia to make n lease with the Phila.
de'phia Rapid TRANSIT Company that would
he fair and equitable to them and especially
TO the citizens of Philadelphia For this
reason we have left our various business
affairs and devoted this day 20 what we
10 flsa fptp . ..tsg
delphia
I'VE have no thought that these bills
| should he used as n club against the Phila-
delphia Rapid Transit Company. hut rather
| as a safeguard and that the committee
| should place the authorities OF the city OF
| Philadelphia in such a position that they
will have the power II the Philadelphia
| Rapid Transit Company docs not see Et
| To make lease with the city Of Philadel-
! phia, and under such conditions as the
| authorities may agree upon is right and
just, to make lease with some other COM
! pany"
CITY'S HANDS HAVE BEEN TIED
G. Oscar Beaslcy chairman Of the Spe-
| Cial Harrisburg Committee on Transit
| Legislation, asserted that the need for the
present legislation is largely due TO the
fact that previous Legislatures have tied
the city's hands in matters concerning
| street railway negotiations The eminent
domain bill particularly, he declared only
restores to the city what was taken from
! 1t by the 1907 agreement between city and
company, and what would have been given
back To the city by an act in 1913 had
It not been for a joker i'm this very act
which nullihcd all that the act purported
to do.
In part Mr.. Beasley said
by reason Of the former acts Of the
Legislature the Philadelphia Rapid Transit
"a IN a.. -
Philadelphia must make one Of two choices
either the city shall build it's own lines
under present legislation which would re
quire the citizens to pay two fares i'm order
TO get II transfer or to get free transfer.
for five cents and pay $4,000 900 a year tc
the present traction interests in cash out
OF the city treasury Of Philadelphia, whicl
money could only some from increased
taxation
This situation is stll further accentuateC
by the fact recently developed to the publ,
, that under the present proposed lease be
tween the city OF Philadelphia and tn,
Philadelphia Rapid Transit Company it il
, provided the city Of Philadelphia shall pa,
and guarantee from its revenues the sun
, OF SSOOO,000 per annum on the watere,
stock Of the underlying companies and tha
the city must pay this for period Of 90
. years 1t can he understood what thi
0 means when we reflect that these under
lying companies have only $50. 600 goo pai
! | III ana that this rental with other charge
2 amounts to per cent per annum o.
l S2OO,OOO,OOO. No city in the Union allow
I such underlying charges as are PROVIDE
2 | Tor 9S9 years in the present lease
e All contracts that have been AUTHORIZE
I between the city Of Philadelphia and vari
$ Gus street passenger railway companie
were made subject to the right Of the cit
l as expressed in every street passenger rail
; way ordinance that has been passed prio
10 l'o! 10 take over at physical valua
n tion all tho street passenger lines in Phila
Q delphia, Therefore the present cminer
domain bill pending before the Legislator
p | at Harrisburg would only restore the cit
e to the situation 1t was in prior to the 1870
Il | contract.
y y RESTORES CITY'S RIGHTS
For instance. the ordinance Of July
1887, which applies to all passenger raj
way companies in the city, provides tina
- every company Immediately after it's con-
! pletion shall file with the City Solicitor d,
10 tailed statement under seal and certife
70 under oath by the officers Of the compan
or the entire cost of the railroad, and the
j the ordinance provides: And the city {
I Philadelphia reserves the right at any tim
o to purchase the same by paying the originf
e cost Of said road or roads and cars at n faI
r valuation
G This right the city undoubtedly had u
: TO 1907, when IL was given up in the COZ
R tract of that year Therefore when Mer
y ritt Taylor and others speak about the cit
or Philadelphia repudiating its contract
x because II wishes to restore this right Il
conclusive answer to refer to the fac
e that all the capital invested in the Unio
= Traction Company and the Rapid Trans
:, Company was invested subject to the city
q right TO take over all the lines at a fa
q valuation.
s. I'm addition 10 this undoubted legf
capacity which the city is now seekin
U legislation to restore, two cents out Of ever
i've cents now paid hy passengers goes
Il pay the eXorbtant past rentals Of III
J. underlying companies, Some Of thes
II rentals, as the Citizens Passenger RaiIwa
o Company, amount TO 72 per cent on II
g capital paid in; in the Ridge Avenue Con
e pany ~ per cent, and in the Frankford an
u southwark, SO per cent. and the Thirteent
,e and Fifteenth Streets, II per cent
y These rentals are altogether exorbltal
u and are for 999 years, and while betwee
- individual companies might be lawfl
when taken out OF the public treasury
the city of Philadelphia through a dehc
are unlawful and virtually immoral TT
is - Euo.,, Mn~ 80 - H..