Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-09-07
TRANSIT GRAB LEASE
CONDEMNED AT HEARING

of these committees cannot emphasize
too much that we invite help"
WEST PHILADELPHIA OPPOSES
| Opposition to the Smith lease. on the
| grounds advanced by Mr.. Taylor, was ex-
pressed by the first speaker, John N. Nc
| Garvey, OF the Allied Business Mems Asso-
citation OF West Philadelphia.
| ''rhe people Of West Philadelphia are
| opposed TO the lease for several reasons" :"
he said. First. West Philadelphia, with
its more than 100000 residents, is not pro-
| tected for its Immediate or future needs.
because the p. r. T. is a corporation oper-
ating as a leasing company. Second, we
| oppose the board OF three engineers. The
| department is the place TO handle transit
| questions. Under the method of selecting
| the board the p r. r. would dominate
| transit as It does today. Third. we should
go slow. Experts disagree. We ourselves
| will be bound by the findings Of Mr. Taylor"
Chairman Gaffney here interrupted.
We are not after general criticism" he
| said We want particular objections. We
| want to know what you are opposed to-"
Serious charges have been made and
| these serious charges have not been an
swered by the Department OF Transit" re-
piled Mr.. McGaryey. Until they are an
| swered we have nothing 10 say other than
| that our expert is fully capable Of defend
| ing our interests"
Dean Lewis arose
"I want to say that one Of the state
ments made by the former speaker Is cor
| rect" he said. THE p. r. T.. is an operating
and leasing company If the question of
| the Fifty-sxth street line came up. follow
| ing the adoption of this lease, the board cre-
ated under the lease could force the COM
! pany to make extensions I want to say
for the benefit of the outlying sections that
the board would have the power to order
the construction of additions and extern
sions."
URGES CITY TO TAKE OVER p. r. r.
c. Oscar Beasley. another speaker for
the West Philadelphia orga MIA ton, of
fered the blunt resolution that the city
| take over the transit company's lines under
the Hecht bill This. he said. would save
the city $4,000 900 a year and permit Ave
cent fares and free transfers without a
deficit.
The resolution read in part as follows:
The Mayor is hereby authorized en-
powered and directed TO notify the Phila-
delphia Rapid Transit Company that the
city OF Philadelphia intends to proceed
TO acquire the present street railway
system Of the said Philadelphia Rapid
Transit Company and the system of it's
underlying companies in accordance with
the rights conferred upon the city of
Philadelphia by act of Assembly approved
the 18th day of July. 1917, empowering
further that the Mayor be authorized
and is hereby directed from consultation
with the Department of Transit to offer
sum not greater than the valuation
of said railway systems as set forth
in the official order of the city--to wit
S119.53l 425.06--and in case of the re-
fusal OF the city companies to accept
said amount the Mayor Is hereby di-
rected to proceed as provided for in said
act of Assembly to complete the require
ment of the system by giving the bonds
and taking the proceedings required in
said act for the purpose OF perfectng the
requirement Of said systems as above set
forth.
When he offered the resolution Mr.. Beas-
ley urged that Councils postpone action on
any lease for two or three years until the
Hecht amendment to the Constitution pro-
viding money for the purchase of lines
under condemnation should be passed by
the next legislature and voted on by the
people.
Mr.. Beasley said he did not favor even
taking up the Taylor lease. He claimed
there would be a deficit OF $4.50O, 900 under
either the Taylor or Smith lease and that
that sum represented annual dividends on
present watered stock. He said that under
the Smith lease the Public Service Commits
sion had no power to force the building
of any extensions or to lower fares.
Mr.. Lewis objected to that and declared
proposed Board OF Supervising Engineers,
it was provided that the Public Service
Commission shall regulate the fares, neither
lowering nor raising them.
In reply to questions by Select Council.
man Trainer and Doctor Gleason. president
of Common Council, Mr.. Beasey said he
was not advocating municipal operation, but
that the city could lease the lines after
taking them over. He said the only fnan-
cial obligation the city would be under il
1t condemned the lines under the Hecht
bill. would be to file bond with the State
for the amount of the purchase price of
$4,000, 900 and that the actual money
for the purchase of the lines would not
have TO be found for many years.
Mr.. Trainer asked Mr.. Beasley IL a rul-
ing by the State Supreme Court would not
make the amount of the bond a part OF the
city's Indebtedness at the time the bond
was given.
Mr.. Beasley and Mr.. Lewis got into an
argument over the constitutionality Of this
phase of the subject. At Mr.. Lewis's sug-
gestion further discussion of that point was
postponed until another hearing.
POINTS OF CONTRACT
Mr.. Lewis opened his address with the
proposals of the lease summarized in the
six following points:
First. To secure unified system OF
operation Of Philadelphia's transit facil-
tiles by leasing the city's lines to the
Rapid Transit Company.
Second. To place the city's investment
In transit facilities on an immediate
revenue-producing basis. thus relieving
the city and its taxpayers Of financial
burden, and releasing it's borrowing ca
To nd ngoin lal ha