Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-06-08
LONG DELAY LIKELY
ON TRANSIT PLAN
Signing of Lease Between
City and P. r. T. Not Prob
able for Months
TwINING READY TO ACT
Director to Begin Work on Docu-
ment as Soon as Au-
thorized

The latest development In the much.
cop1plietted transit situation make the
actual signing Of a lease between the citS
and the Philadelphia Rapid Transit Com
pany for the equipment and operation Of
the city's hiRh-speed system matter OF
some months in the future.
Director Twining said today that he is
ready 70 begin drafting the city's lease offer
10 be submitted 70 the Transit Company as
soon as Councils have passed and the
Mayor has signed the ordinance introduced
from the Joint Finance and Street Railways
Committee in Councils yesterday.
Prior to introducing this ordinance. which
instructs the transit director TO proceed at
once 20 draft a new lease, the joint COM
mittees took action TO kin the p r, T. lease
proposal under consideration for the last
elk months and to withdraw the city's origi-
nal lease proposal Of october TO- 1915.
The clty's offer Of October 1916. was
sponsored by Mayor Smith and introduced
IN Councils at his request after he had In
ntruoted Director Twining to prepare Il.
Director TwininR would make no esti-
mate today Of how long It will require
his department 10 draft the new lease II
depends largely. he said, upon what action
the Legislature takes the four transit
bills now pending in Harrisburg. The Di-
rector made II plain that the city has not
withdrawn It's support from this legislative
program.
STILL FAVOR BILLS
THE CITY," he said. has not changed its
position regarding the need for these bills
The action OF yesterday, we feel. should in
crease instead OF decrease the likelihood Of
their passage Great efforts have been
been made 20 have the transit company
modify it's opposition to them, and another
conference, with this in view, will probably
be held before the Legislature meets next
week"
The Director went on to say that It would
not require as long to draft the new lease
~ II would have required II negotiations
were only beginning because the city and
the transit company have come to a clear
understanding of the points over which
they diger and the department is in po-
sitlon to reduce the entire matter to writ
ing in a very short time.
When the Director has completed his
draft of mo new lease it must be approved
BY Councils and then given to the transit
company, which will have ninety days to
either accept or reject IT,
The long-looked-for audit Of the books
OF the rapid transit company, which Mayor
Smith requested Controller Walton to have
made some months ago, was also sent to
the Joint Finance and Street Railway Com
mittee of Councils yesterday and laid over
Tor future consideration.
AUDITORS SUBMIT REPORT
On the face Of 1t the audit seems 10 JUS
tify the contention Of the Rapid Transit |
Company that the corporation has fairly |
earned the large surplus for the last seven |
years which questioned in some direc- |
tions. The audit is a very lengthy and de- |
tailed affair, containing more than 200 type |
written pages. While the bookkeeping |
methods are questioned by tho auditors, in !
some details the report says: "Our exami- |
nation did not include verifcation Of all |
the details Of the transactions during the |
period (referring to the period i'm which no |
audit was made), but was sufficient in its |
scope to satisfy us of the substantial cor
rectness of the accounts"
The audit was requested because the |
city in making its plans for the operation
of its high-speed lines wanted to make |
sure Of the earnings Of the company,
inasmuch as the demand for a 5 per cent |
guarantee and many other demands made
by the company hinged upon the claim that
II was earning approximately per cent
on its capital stock