Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-07-02
P. R. I. CHARTERS
WILL Be ATTACKED
Beasley Serves Notice of Busi-
ness Mems Associations
Next Move
OUTLINES HIS POSITION

An attack upon the charters of the
underlying companies Of the Philadel-
phia Rapid Transit Co. will be the next
move in the fight of the United Busi-
ness Mems Association for lower trolley
fares.
This was announced today by G..
Oscar Beasey, counsel for the com
pany. This projected move follows the
decision of the Supreme Court yesterday
that the Public Service Commission has
no Jurisdiction over rentals paid by
the p. Il. T. Co. to the underlying
corporations.
within two weeks" said Mr..
Beasley, ''the United Business Men s
Association will ask permission from
Attorney General Alter to begin quo
warranto proceedings against the
underlying companies. In these pro-
ceedings we will ask by what right
these companies continue to hold their
charters.
"The position we take is that they
have no right to he regarded as legal
corpora tions, for two reasons. The first
of these Is that their stock is not fully
paid up, and the second that they are
paying per cent dividend on un-
issued stock.
No Specific Control Over Rentals
The decision of the Supreme Court
Indicated that the act creating the com
mission did not give it specific control
over rentals. Therefore this United
Business Mems Association will strive
to send to the next session of the Legis =
lature men pledged TO revive and sup
port the Milar bill, defeated in the last
Legislature, which would give the Com
mission specific jurisdiction over rent
ais"
Mr. Beasley took the ground the Su =
preme Court decision definitely removed
rentals from any protection. so that the
Commission would be justified in dis.
regarding the rentals paid these un'
derlying companies in fixing what woult
be just rate of fare.
Position Not New One
Samuel Rosenbaum, Assistant Cit!
Solicitor in charge of transit matters
said the Supreme Courts position in re
gard to rentals was not new one
and in fact coincided with what hat
been held in the City Solicitors Office
The City Solicitor, he said, had alway
held that the matter of rentals did no
properly hgure IN the question or VIVA
was the just and proper fare to be al
lowed the Transit Co.
"Our Office regards the present valu
alton proceedings before the commission
as more important than was the cas-
before the Supreme Court" said Mr.
Rosenbaum. because once the valua
tion is completed. the commission wi
be able to determine the just rate o
fare without regard for the rentals pai
underlying companies.
THE City Solicitors Office is not i
position to make an official statemen
on the Supreme Court decision. both be
cause we have not yet received cop
OF the decision and because City So
licitor Smyth is out of town. When
returns there will be conference q
the various agencies concerned
Commenting on yesterdays session {
Councils Committee on Transportation
Mayor Moore said there was no reasO
to call individual members Of CounC
or any other persons into the frequer
conferences between the city's and T
r. 7. lawyers. He emphasized that tn
law department and the city transt
department have always been at tn
service of Council.