Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1918-06-04

Continued from PAGE One
mission by Mr.. Lewis before argument
was begun.
Supporters Closely Questioned
Lawyers representing those favorable
to the lease were questioned closely by
members of the Commission as to the
desra bilty of the proposed lease at this
time
The questioning was led by Commits
sioner William A. Magee,, recently APP
pointed by Governor Brumbaugh to the
vacancy caused by his resignation last
fail to become a candidate for Mayor
of Pittsburgh,
The questioning began with the first
speaker. James Collins Jones, who was
asked by Commissioner Magee as to the
manner in which the lease might be
broken
MI. Jones replied that nonpayment
of rental would be one way of breaking
the lease and added If the two parties
to the lease were determined to smash
it. it would be no difficulty to find
| plan.
Commissioner Magee then referred to
the possibility of a rate of fare being
| fixed at some time or other which would
| prove Improbable to the contracting
parties.
Mr., Jones, in closing his argument,
| said that Philadelphia was in urgent
need of transit development, and unless
| it got the development needed 1t would
be unable to take it's proper place as
foremost municipality.
| He said he believed the P. r. T was
| justified in priority in the provisions OF
the least to protect its stockholders.
Mr.. Ballard followed Mr.. Jones.
The war;" he declared, has made
Philadelphia the most active spot
on the face of the globe today. We are
making 33 per cent of the merchant ma
rine of the country, and the city has
fallen down
Mr. Ballard referred to the lack of
cars and other transit equipment to
emphasize his remarks. He declared
that last Sunday the receipts of the
P. r. T. were $4,000 more than on any
previous Sunday in the history of the
company
YOU" he said, speaking to the COM
mission. have ordered us to buy more
cars next year. We have got to have
them this year"
When Mr. Ballard began to speak
Magee interrupted him to ask how much
power the P. r. T made itself.
! I'VE buy about IS per cent of our
|
replied Mr.. Ballard.
wouldn't It save considerable money
if you made all your own power" asked
Magee.
Mr.. Ballard replied that that was a
proposition the company had not cared
to put up to the city.
Fere Too Low, Says Ballard
The necessity of rate of fare suffi
rin Is ct he aoIc ff fha
formed the basis of Mr.. Ballard's argu
ment He declared that the fare ques
ton was the vital one in the lease deci'
sion.
When questioned by Commissions
J Magee concerning the proposed boart
of supervisors, he replied frankly tina
The P. r. T at first did not like tn,
~ board"
In reply to a question whether th
: board would interfere with the power
Of the commission he said he did no
} think it would.
/ II can't think you will fight the will
| of the Councils of Philadelphia if yo'
| are free to retain your powers"
5 Mr.. Ballard declared that the P. r. I
had absolutely refused to pay the exces
income tax of the stockholders of tn
underlying companies
} For once. I believe am on tn
: popular side" he added.
Must Raise Fare, Says Ballard
: After q review of 600 pages Of testi
t nony, Attorney Ballard summed up tn
: salient features which must be consider
, ed in determining the validity an
( desirability of this contract as follows:
e First. The City of Philadelphia
l has determined upon a program of
municipal construction of high-speed
. | lines.
). Second. 1t has determined that the
!. public can best be served il the
! operation of these lines is turned over
= = to the P. R. T.. Company and the
0 present system of that company and
0 the new lines of the city are operated
y Third. The proposed city system is
!, not a business enterprise. Operated
!. alone it cannot be made to pay at any
'aS Fourth. m The p. r, T. Company is
g earning a substantial return upon its
c capital stock over and above per
h cent dividend upon capital actually
l. Fifth The joint operation as pro-
posed and desired by the city and as
S covered by the contract under con-
: Sideration cannot be succeSstu! at
!. sixth Even after the entire city
8 system is completed at present
e 900, the surface system, which repre-.
q sents an expenditure of an equal
q amount Of money, will be called upon
q to take care Of "a per cent OF the
traffic. only 26 per cent being handled
by the city's lines.
q City Gets Most, Says Ballard
IS Mr.. Ballard called attention to the fat
10 that no such contract had ever befor
been presented to the commission.
l. recalled the remarks of COMMISSIONS
Is Ryan, made at a former hearing, whe
IS he stated that the commission had neve
e vet approved a contract which fixed
IS rate of fare.
e 1T can readily be seen from the fore
10 going statement of facts" continued NJ
IS Ballard. that no such contract q
y this has ever been before the commi:
= sion.
ID This is not the case Of a gusiness col
It poration asking that its fare be fixed. {
even that the basis of its fare be fixe
for a long period of years. 1t Is a cas-
in which a municipality spending ver
- large sum of money, estimated at si2o
600 900, in an enterprise which cannt
=, possibly be productive of suScient rev
- nue. to carry 1t, has asked a prosperol
private company engaged in the san
Nv line # business to amalgamate this bus
,e ness with its own and to give up a
l. chance of earning more than per Gel
,e upon an actually paid-in cash capital.
X "The city seeks this unifcation of Il
. two systems with the fact staring bo
parties in the face that the rate OF IA
, now in effect will not even meet opera
, ing expenses. Yet the experiment Is
start with an actual reduction of net re
: anna IN the eytent Of 81 600 900 throuf