Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-07-20
DRAFT OF NEW TRANSIT
LEASE NEARLY READY
City and P. R. T. Conferees
Working on Plan for High
Speed System
RATIFICATION DISCUSSED
Considered Unlikely That Matter Will
Be Put Up to Councils Before
Regular Meeting

The draft of the new lease between the
municipality and the Philadelphia Rapid
Transit Company for the operation of the
city's high-speed system is approaching
completion so rapidly that plans are al
ready being discussed by the administration
heads as to how the new lease can best
be presented to Councils
Judging by the results of the conferences
held so far. the new lease when offered
to Councils by Transit Director Twining,
will embody the terms which have been
fully discussed and agreed upon by both
city and company, and it will be ready
for ratification virtually without further
parleys.
Although special session Of Councils
has been suggested as the only way TO get
action on the lease quickly, 1t is not likely
that this plan will be adopted, The first
regular session of Councils 'oill be on Sep
tember 20, virtually two months from now,
and it Is probable that no attempt will be
made to have Councils ratify the pact until
that time. Both plans were discussed at
length on Monday at a conference in the
Mayors Office between the Mayor, Transit
Director Twning and City Solicitor Con-
nelly.
Virtually all Of the serious differences
which caused the rejection of the 7. X. T.
lease offer have been settled to the mutual
satisfaction of city and company conferees.
A number of the minor details are yet TO De
arranged and the conferences will be con-
tinued until everything is ready to ofter
a complete lease.
Although 1t has been agreed that all
information as to the terms of the new
draft and the progress of the conferences
must come from Mayor Smith alone, the
Mayor himself is playing secondary part
in the conferences.
Transit Director Twining and A. l..
Drum, consulting engineer for the COM
pany meet every day in the Directors
office in the Bourse. and as the various
points are discussed and settled reports are
made by the Director to the Mayor and
his other transit advisers and by Mr.. Drum
to the transit company
It is understood that the company has
waived its claim to n per cent guarantee,
and that per cent will be the fiat guar
antee given the company. with a sliding
scale when the earnings go above figure
sufficient to pay the per cent and meet
the clty's charges
The officials of the company are not dis
posed, report goes, to have as future
conferees either William Draper Lewis or
Joseph =. Gaffney, or Councils Finance
Committee, both of whom before the Public
Service Commission and the judiciary Cen
eral Committee of the Legislature, and at
meetings before the Joint Committee on FL
nance and Street Railways. repeatedly
charged that the stock of the company was
watered, and that the rates of interest paid
subsidiary lines under the terms of lease
were not proper to be considered in ascer-
tanning the overhead charges in negoti-
atlng a lease.
Reports of the progress of the negoti-
atoms and the settlement of the various
points are being made to Mr.. Lewis from
time to time, however, by letter to Maine,
where he is spending the summer.