Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-08-17
LelUis' s Explanation and Analysis
Confined from PaEe One

| Confined from Page One
are Infamous and no decent man would
! sCrv"
The principal provisions OF the lease are
! A. The city ia 90 build and mainly equip
! the lines that have already been authorized
! by Councils Tho company is to supply in
tho main the electrical equipment, If the
city desires, the company viii also furnish
tracks, third rail, signals aud rolling stock
provided il can secure the money for such
| equipment at not more than per cent
rThn company is required to furnish
| enough Of the equipment and equipment
! Of such a character, that r"Capturc by
| the city Of it's own system would be prac-
| tically impossible. wherefor" 1t IS wholly
! at variance with Mr.. Twning q contention
| that no lease should be signed which does
| not provide. specifically and practically
| for such rccapturc by the city at any time
| of it's own lines
B The company agrees to build all extcn-
! sons OF It's own system recommended by
! the board of supervising engineers and APP
proved by the public Service Commission.
mo apparent objection lies to thisl
c Prior 20 the initial operating Of the
first section of the city's system the com
panv is to operate its own lines as at pres
cnt. but subject to the regulatory power OF
the board Of supervising engineers.
rNo apparont objection lies to this.l
u, The company is to pay as rental for
The use of the city's lines an amount equal
to the interest and snking-fund charges on
the bonds issued by the city to construct the
lines
T,rhe company cannot do this unless
higher rate of fare is In force during the
early wears or the lease 1t has not the
money could not get it and has no thought
nf irving TO- The whole purpose of this
nrovisiOn IL to force higher fares. 1t is
a theoretical advantage, FOR me city; II, IN
nractice, it is calculated TO give, and viii
give the company unlimited inanclal pro-
tcctionl
n. The following payments are to be made
in the order named from the total revenue
Of the unified system;
First Al expenses of operation and main
tenancc.
Second Taxes Of all kinds
Third. FIXED charges and rentals Of the
company.
Fourth Interest and sinking fund pay
mcnts on securities of the company issued
to obtain new capital for extensions to its
own lines and equipment for the city's lines.
Fifth. Payments into the various re-
serve, depreciation and contingency FUNDS
necessary for the prudent businesslike oper-
alton Of the unified system
sixth. Pamcnts due the city under. the
1907 contract,
seventh. Payments into the city treasury
Of an amount equal to the interest and
sinking fund charges on the city bohds Is
sued to pay for the city's lines
Eighth A dividend to the stockholders
Of the company As long as the present
three-ccnt exchange tickets are maintained
this dividend is limited TO per cent per
aunum when the exchange tickets are
abolished by the company or abolished or
modified by the Public Service Commission,
tbe company, II the gross earnings are sur
sc,o,t may nay a dividend not exceeding 6
nor cont cumulative from the date OF the
,ssD,ract. the provisions of the 1907 con.
troct allowing a cumulative per cent diVi-
dend from January /, 1907. to date neins
waived
Nintb Payments to the Sinking Fund
Commission established under the 1907 con-
,ract equal in amount TO per cent upon
srch of the clty's bonds as shall have been
ratired by the use Of money previously paid
into the sinking fund under Item I, above.
This item Will not be payable until about
thirty years hence. when the first bonds will
be retired
Tenth. Limited payments Into an oper,