Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-12-18

Continued from Pare One
Charles l.. F1uck. OF the Northwest Busi-
ness Association: DIR. william Draper
Lewis, transit adviser to Mayor Smith.
and William s. Twinine. Of the Depart
ment Of City Trnsi Il
DIRECTING NOT POLITICAL
After declaring that the objections TO
the revised lease weit not political, Mr..
| Noppel declared that the citizens should
understand now tn II the Philadelphia
Rapid Transit Company will not make
any concessions IN the lease negotiations
wi lingly.
"without q doubt" he continued. "a
different attitude on the part Of the
II. r. 7. company In few Instances
during the negotiations would have con-
tributed largely TO n more friendly feel
ing"
He declared that the s per cent diyi.
dcnd on the stock Of the =. II. T.. which
the revised lease would qua arantce. lis
not an excessive return on an invest
nent
"The guaranteed dividend" he con.
tnued, would make II very easy for the
company to waive the exchange tickets.
but the 1907 contract has been stone
wall IN the excessive dividends paid TO
the stockholders Of the underlying COM
panes
Uncle Sam now wants n share of
these excessive profits. Uncle Sam, how
ever meant that the man who receives
this excess income is the one who should
nav the tax lie cannot escape having
this tax ON the stock of any other
corporati,p avcn vber, tho ,,x ia N, Id
by IN. conpany
BURDEN On CAR RIDERS
"ys, I'm this lease with ,ts ne, cen,
o,aranteed diyIdena and tho right ,o
Increase the fares in order TO meet
this fxed charge. Won are nlacinp this
or.., ,,d ,,eai, b,rao, ,,,or ,ha CO..
riders of This ritv.
.The burden belongs to the stockhold-
ers of the UNDERLYING ,ompan,es
Every corporation mus, fight its own
battles and take ito chances So far
az the dividends of any other corpore .
tion are concerned the stoclbolders do
not expect that "A friendly nunicipaljty y
will come TO its rescue and guarantees
its dividends"
Mr.. Nopnel derried tho nerotiation of
"A lease nj the present fine
"If conditions were only partly normal
and there was any prospect Of the high
speed lines being built nov" he said
! there would be more rea son for euproy-
NcHCC.
| that under nreseut conditions there is
not the slightest prospect of any of these
hieh-speed lines. excepting the Frank
| ford line. heinz built for years ,o cone
| Why make "A lease for lines that may
/ not be built for perhaps Years to come p''
The United Business Mems head
urged that II the lease Ia ratified. u in.
cludes a provision for a subway sta
! ton at Nineteenth street. with free
transfers to West Philadelphia,
! cnnnern,ms ,,nn. ~ ~. So., W.
,,,n nro,.;sin,',, Co., -, w.. s Isoppe, uaneu
% VIZ p.o'' '''''''S ior '"e proposeo h'ereas'
,',s a.,
a., .ne n'sn COS. OF operalion OF ever
.ne -, esemt SUBWAY ana surface nhes
silou.d continue TO such an extent as tc
make necessary any increase OF the pres.
ent carfares. and the city was asked &c
agree upou such an increase" he said
~ mivh, no r.osa,,I. 60 80, go
n''snt oe reasohaL's 10 grant sucr
an increase. But In such case. facts
ana hgures would neec TO be given tc
convince the people of its absolut,
necessity. In such a case, IL would b,
definitely Lnnwn ius, ns,, ,h, inora,e,
.,,,, 49," y''t ""' 'ne nv, ,eae'
wou'u oe, ana ior now long time
ana We would no, be cropping In thu
posed lease. because no san would dar,
to predict to what extent such fare,
misnt ne increased.
ReNerting TO the question or the guar
anteed per cent dividend, Mr.. Noppe
concluded:
THE 8 per cent guarantee maxss tb,
u y 7, sto,,, ,,r,'a,i,, ,.,.,
~" , E n.uaIiE suarahteeu
per cent .hited states pond because ~
matter what business disaster may COM
to this city in the future. II could no
affect the earnings OF the r. n. IT,
DOCTOR LEW1S'S STATEMENT
Dr w,,,ia,, p,. o,. a., ,t,,..
vnlo,' h'aper Lewis, tno cl'9
legai ADVISOR IN the high-speed nego
Nations, In answer to the recent actiol
of the United Business Mems Associa
tior., issued the following statement.
'The ma iority Of those members of IN
limited Rusiness Mems Aasoc,a tiop ,rh
we're nresent at ,ho meatin9 nn nncs,m
her nassci n % resnIn.,ome IN % ynr -
tho indefinite postponemsnt or sny de
lines are 10 be operated and that n sbor,
term lease for the Frankford elevate
system should be made with the mos
acceptable lessee or operated ss an in
\ dependent line by the municipalitv.'
~ do NOT think taat this resoiutio
would bays been nassed had The nem
hers present al the msetine been coeni
zant Of ali the facts
what would we obtain by abandon
ing the contract now before Councils an
| negotistmg temporary lease or IN
1. fThTkIOTu line