:..??) f.TX"v5TF,T7r?TOnflF",M
, , . .-v ill L .. ' ' 'JL .,.' , 1 ' I f
. -PPriiPrtoTTTgaBn-T.-') -v,
yA UMa huur Tft ANsim
H" "B" UCh MUM . . I . .
.v.nea Dy the bo( -o ..my De ae. .,,
SYdfc
, from ri One
"TV. .i,..itv transit facilities con-tllutlns-
' h i-dlvldual.operntfnir section and there.
B.i .- an.. ...a,, ,. . .,...... itiu oa u
I Siiim efficiently and Recording to the hlRh
P' Si Standards of electric rallwny opera-
W . .1.. Ante. tt the nrflrnnlntlnn nt tfc.
if Afr " " --" -' "
i. So transit facility provided by the
K it shall become a pari or mo unmed sjs
Wr unless tho board shall have approved
t? if"1..., m nrovlded under Article XXXIV
IS T.y. M to specification-) ntid cost, but this
'5 JJiii-ion shall not apply to any transit
fc jIaiiiiv constructed, purchased or other-
wise procured by tho city prior to the
lite of trie organ. mi.u.. "i mo uu-.ru.
i ,i. The company shall not provide anv
ils: inntlt facility- the cost of which will create
' in .ddltlon to the fixed chartres of the com
Ifc !? as snecincd In Article Xlh, unless the
f Kiri shall have apprnvsd the same, both
r D5r .iAotlnnM nrwt mil.
r r Bsd "I'0" tne recommendations of the
k board, tne cuy onmi me rimii io re-
r . t. nnmnanv from llmo fn tlm.
...vM and operate such additions and
l .-tensions to the company's transit faclll
I. .t. within the limits of Philadelphia as
E ... mmlsslon, upt.n licarlmr, shall de-
Purmlne to be reasonable under this con.
trjet and necessary for service to the public
I in connection wltn tno uevciopment or the
unified -ysiern. - i'U'uj u.ve- any
nblKtlon to tho Jurisdiction of the com
mlwlon to Issue an order requiring the
company to take nny nctlon necessary to
tiable It to construct or procure the con
itruetlon of such additions or extensions
COMPANY TO FUHNISH FACII.ITtrS
First The city shall give notice to the
Amnanv at such time at It contracts fcr
t tht construction of any line, or part of a
I.1 II ef the city's system, and the company
1 liull furnish transit facilities for the same
V it or before such time as they shall bo
medta ror operation ; ituv.ucu, mm reason
ibti tltn ha" u9 allowed the company In
-. in Iran-It facilities nprp-nrv ttr
I iuch parts of the city's system ns mav be
f) unr construction ai me iiaie upon wnicn
tmS COniraci nun" "ctumo encuiive, 'l lie
tompany shall Install such transit facilities
it iuch tlme and In such manner as not to
InUrfere with the construction or In
itillitlon of the city's transit facilities, so
hit where necessary the work of construct
fi inrsnd lnstalllntf the city's transit facilities
k n Installing the transit facilities to be
rA furnwnea vy inu uuiuimn) lur ine cuy may
f be co-ordinated with tt view to the greatest
( tfflelency as regards time and expense. The
j company agrees not to delay partial or com
V plete operation of the city's system or any
? pirt thereof by neglect or falluie to furnish
& the transit facilities specllled In thH article.
ind the city Is hereby empowered, if In the
tplnlon of the director any such delay Is
ciused by the comrnny, to proceed, upon
notice, to supply such transit facilities at
ISf the company's exponfo as provided In
Article ah
, Second. "The company shall provide the
following transit facilities for use upon or
In connection with tho city's transit facili
ties: (a) Low tension feeders, both positive
ind negatlxc
(b) High tension cables, ducts and con
duits, transmission Hues and connections,
Including poles, ulics nnd such appurte-
Ki nances as may bo necessary for the opera-
I t.A.. nf Hi- nltv,a ttvulAni
IC) l'oner sUitions, substations and real
enf-te necessary therefor.
(d) Telephone and any other apparatus
for communication.
(e) Lighting flxturci nnd wiring for
tatlons and tunnels.
(0 All station equipment.
(&) Such shop tools, machinery and other
niecellaneout Items as may be specified
If (he board.
In sirlilll Intl In flit nhniA M,a r.nti....
J may be tequircd to supply, at the city's
cptlon, tracks, third tall, signals and roll
ing stock, for use upon or In connection
Kt with the city's transit facilities, pnnlded
Ky me company is awe to secure funds for the
-- wi.akiuv.,u(, .,, kfuiv.,iaac ui buuii lacuuies
it in annual Interest cost no exceeding
Six (6) per centum.
COMPANY TO FURNISH POWER
Third. The company hereby agrees that It
M furnish ndequate power for the opera
tion of the unified sjstem. Subject to the
ijproval of the board, the company may
contract for the purchase of power, con
itruct new power stations and substations,
lad utilize and enlarge tho existing power
t-tlons, substations and other electrical
equipment forming part of the present op
erttlng plants of the company. In fur
therance of this purpose, the company
ay improve, modify or change the power
Plants, substations and other electrical
equipment forming part of its operating
equipment
.Fourth. In connection with transit fa
cilities tO be flrn!)lftH hv thn nnmntintr fn
fit... i... .., : .".-.r. . :. .- ".
mi It laciiitate tne operat'on or
the unified system, the company shall hae I
;. the right tO Urmlllp ftlmUh Innlnll 1it-
E1! 'J1-1 maintain, In streets or 'other public
wwiea, sucn connections, condu ts. nines.
iy or other means for tho transportation
or transmission of eicctr'clty, steam, water,
Ir or other form of energy to provide
Power or to signal or to send messages, as
-y be necessary solely for the proper
per&tlon of the unified system; but no
Wh conduits, pipes, ways or other means
-hll be provided, furnished, Installed or
jl- unless the board shall have approved
th location, character and method of con
struction Of ttlA nnniA an.l tliA I,., nt .4-aata
If 2 iC,nnecUon therewith. All such work
fc MUlll be SUhtecf if. all t'ir rn,ilfil,n. -in-
Ih, Wf thereto.
E? ,v mi Wherever practicable the company
S, JJJ11 b allowed to use for substations or
if PtAer transit fanltlaa -vnllnhl. AV.A.. -a1
(( State purchased by the cltv for or as a
Mrt of the city's transit facilities.
ADEQUACY OF FACILITIES
The company shall, at all times during
J" " of this contract, provide transit
jwuitles, for use upon or In connection with
ii.C,"ty's transit facilities as specified in
on? V a'"1 transit facilities for use
opon or in connection with the company's
.Wii which shall be adequate nnd sult-
tM company shall reasonably an-
tm, tho Browth of tramc and provide
'"' of such transit facilities therefor,
. "her With Slleh mmrn nnrllnni nf such
. --. (..v t,u...u.. -. ..
GRAB, GUARANTEES DIVTOENg
-
-
CIIANon iv .
"c. at th. ln"f'V.re - the Market street
"tin6 .IT-l "3"yM..."me.a JT1! ih.C-mm.nweal.h. passed
Point, ot branch.;'
the
at
Frankford line ami .i?. Jr(,nch-orf of i
the points uh!r!"5 ",.,..I."-by "ne. and
Mhtty loop Mia ,JT V,e.CT?"i.hy the
wi'dlng necessary nii , 8lr"t ,lne- '"'
rntde by the city "' lo" chnges. shall be
"- trt.t line '.h,n " the Chest
other arrangement, ' ,be, constcted. or
!e for or the r.rnJ fof ,orml"al facll
or Uarbv line, 0P ,"" V.Vhe Vr""4
"UCh further" eh.n h ot tnc sa,d lln'
line shl cha,ns " the Market street
I,, ,'" " ni'Prced by the boai
n..,1.-";,..' " 'Uratton. recon,
K;,ffinhh.'GS3.h'-'-r
iromi iil i . comPny "hall fall to make
Brantedt1vX,,hI",on ,P "tel""' of time
wilt J thc JOi,r1' the city mav:
cost and ffi ,,,e, !Lan',lt facllltI- t the
m. i exl'cnke " the company, In which
the'newnT,' ."W ' bB 'M l5
In ArUcIe Xli, ,,0M1I,:ln--- n "Leclfled
ance.COfo'r ih!-l'f." '.II1.1 for s,'eclnc ----m-tr.il.-J.
,tl10 ni'Polntment of n receUer.
Sr.?Jiy"I,.t.tlon or fur -ch other form
.; ,,.''" '"". court lllni ilftm equitable
oard
Hon ,r eh, -"'.." 'c"X!0n.' "construe
vlded nni. ar i creinucrore pro-
hiH "" lntPi?rf. ?TBrMU,,,n refrom
t-rrsi, 'fnumie '" ,ht C0,t of tho clt-8
COST OF TRANSIT FACILITIES
thf!;?i,np!,0nB ,l,e cost of a transit fafllltv
!.onc!h. R "e'nS 'hB b '-cluded.TnS
mo'nev or'nl' and "eary net cost in
irnC,lt,facl,myChase " co'""ru""' "
aniaces nrnni??al. ,ervl''e- '"""ranee and
J:J PJ" J, a'" or ac"ued befo.e the be-
mS"f :.."a"on.'. an'' ?ch ""ess
" t li'iiijiih w r rnn r.iu...
n,flA ' . .." -'
and.nirnn.. ..':,"".'." ,""' ""'
Third i circumstances.
legal or .n.XJ.'.'cacn an1 V'ry
nt th. l.,-l.t.U
sessloni ot 191J nnd 19IS nnd dulv np
proed by the voto of the people at the
Noember election In ID15.
Oross revenue shall consist of the reve
nue from transportation and revenue from
operations other than transportation, In
cluding nil gross receipts or gross earn
Iiiks, Interests on deposits. Income of llie
company from securities of untlcrlvlng
loiiipanles, or other Income or profits from
all sources derived by the company directly
or Indirectly from the operation nnd Use
of tho company's system from the date
upon which this contmet h-iii i,,
yfrric,'j' ' the Initial operation of the first
individual operating section of the city's
or enuttnl.u -.i.. - . . V. ' I sv.stem. nn,1 ti,-Anrn- ,i.. ..,....
existing n-niviij now nr nereattcr ." ..: , mr uninea sys-
Its operation ns
during
a -. I. .,.- . . . n
boar. . ,mf ;;;""-'. "' "'".opinion or the
revenue. ' '"'", cn"Keawe against gross
vlded bvllth,W ,he ,ran-lt faclllty b.W
Inr fiimi i " c01"'"1" Interest nnd sink-
Knd c,h,iT Paid or accrued dur ng the
"' ,0 ,n? we f he facility In
t?iut i ' y tor ,he facility. In case the
I " 1, L? ' the city. JntercM
;:..!?.r?. r nie.l
fnr iv, . i securities Issued t
--. .... ,.iioil laciuty flurl
of construction and for ono
cqmpletlon of thn unrt f
debtedness shall have hn in,,,-..,
(a All . . " ""mrii
w, u uxjiphbc liicurrod In nrocurlm?iiii
m0yne?nc.eudCrr;,, P"y 'r - '-'-t fn
mv. Including the cost of engraving ami
printing securities, adverstlslng taxes ex.
IL S(, ' "nB. !ecur1"" "nd trustees'
"---" n-i-uirfu in connection with
original Issue of securities
Ki) i-xpendltures foi
tlonCto " rcme,1' sl"1 be '" 'hU-enl-ii
Vr 0,,,'r remedy, and may be
and l suehnm !""e ,0 ,,m' aml a' -
pedle t hv r or a'1 mn' 1,c ,,eemtJ
bee n. V? ,e fll' "i"' t,,e crclse r the
'hS n iS?i t"" .N"rc" of one r'me'-?
to exerc e n,dp,7nP1 n ttnlu'r of r'Rht
any other rl.lh,e M,ne ,,me or thereafter
lonsh. iln, ,ei !v ,'xecl1t ,lmt no two In-
is; Mm'.'.sr1"" rhan he cxerc"c" at
inlt0!,!",''!0" ,ltre,'"'lT shall, however. Im-
ecur lie, of",?' ",e llC" or 'CCU,ll' " ai'V
ls9iio.li.; "'P C0"'Imiiv theretofore dulv
thTse,C0,n,tl?;cCtrrlla,,c, WUh thC "'" of
THE ACTf.M. LKASi:
MICTION C
The dliector shall .u .!., . .
.mid..-?" cl?."y m,n ",,e '-h :
tern i ,er"''l- wun of the cltv-s sys.
tern will be completed
e.Jhin.iuiY" S,lla11 ,ak,, iww'lon of
cltv m i . 'Ual P,,r-""'K section of the
l,":I"c"1 "t midnight on the day when
Z, , '" !,,,a" ,,e completed, but -lull
"c, o'nlnm";1,1 'J! rMr? ""!'' " ic.
onnor Mr ,, f ha" 1,'lv' ,,n'1 "''Honable
ties in i nr """l,!'"K the transit fncill
such kJ.T f,""nl"'e.l by the company for
1 nH,r,l'a, V ",fr,nf" remain in posses
"ion during he term of this lease
,. ,C "" or an ''" "f hc clt.v H
" " "ll iimn.inv siinii h i.r,..,.j
DEDUCTIONS FROM CROPS RI.VIJNl'K
From and after tho dale upon which
this contract shall become effective the
company shall mnke. In the order named,
from the gross revenue of each fiscal vear,
the following deductions or payments prop,
erly chargeable ngalnst tho gross revenue
of the said yeaf:
Item 1 All expenses. Including mainte
nance nnd damages nctually Incurred by
tho company In the operation of the com
pnnv a s.v-tem until the beginning of the
operation or the unified s.vstem, and there
arter or the unified svstem
...I'i01". : A" ta't", "'at may be assessed
against the city upon Its securities issued
?..paT. ."r ,1,p construction or piucliai.,. of
,h ."t r,,cllltl""' nd In respect
1" : 111. r operation or the elty'a
svstem and all taxes, licenses, assessments
and charges now nr l.rMn. ...........
evled or nssP.scli ,v nnv cottm,,, ,
.,,.11 i' .or w,,lcl1 tlu' company mav be re
Lnl,lC?lt ' ,MV, U"" .r '" lc,"t'l't " the
aid clt s kj stein or the operation thereof.
!!!." ,e,,ncct Pf wn capital stock, prop
erty or franchises, or Its debt mid the In
crest thereon Hs ..xerclse of It franchises.
lumLn."1'" ,ro-" C.-lpts. net Income, or
dividends p.i,. mi nl, tnX(., ncenws ' ,.
wssments and charges Imposed upon nnv
iompnn.v vvh.ise propctty Is owned bv the
:H,;y,,L.?,..!".,,:r-1 ." ' opemud-l,. U
"' "im.T ine lerms or such leaso
or operating gi cement It Ls ,ai-.i .-
.'.'a.w, ""-lit tnves due to the cltv on dlvl-
svh .m , ' or an ,Mt "f the clt s
1 sjsiem, the nmium. .i..n . ... .
.. .. . -.,.-.... nu. in up iipriniiie.i
o pa.v eZ . ", "'?"'. l"v "" transit facilities i,-m r. i,v 1,". 'V -.. " " " '1,a,", un(1,r
ng the period . . "-"'"on or the transit fnrllltles irii,,..i V """' """ "" anu all con-
year after he , ' "J'1";"-'" 'V the companv for the "u - v ', l,,lm'",.1"-''r'- "hleh the com
.. ..' , ..r . 'is specified n Ariinin v i ,.. ..' .':,'. ' ,'',M "! t nnv time be infiilK- ,n,.i,...i
"' , therefor, or ror ,1Vh.,V. '., "' ' """"'" ! '" ""rllmte t,i , ..,. ,i '. V" '"
1-1 T "S 1
l,i. . - " nc iiiiinn iivui
f ,n... . ,r,M!""' "r the clt.v 's transit
facilities shall have been d.llvcrcd to the
companv. In the exercise or this privilege
the compan shall protect nnd savo tho cltv
harmless from claims, court n,.iinn nn.i i,
I (.OSlR HTlll nVllntiana ...nl.l . ., . .....
tho r 11 ,-"""" '"tiufm uiereio arising
rrom Injuries or damag.. to persons or prop-
111 "iciuning tne public, the contractors
lira f.llt ma . ..
ments or renewals of a transit facilltv ,.,! - ! )e c'nl"0es engaged In constructing
uurtng construction or after It i,.,ii ,,""" ,Mi,,l,nB ",e "tvs tnnslt facilities
been used In operation which. In ,i, ,a ,,. .. ' ' ". " p compan xliall lepalr nny of the
or t he board, shall have been necessitated hv !
4nu.iv construction or les -n
If nny Increase or profit (other tha
...,s.c ,. luuui resulting rrom opera
from whatever source derived, inelu.li..
terest on deposits of ,t ,,;: 1 l.u . "reu r ",i, i.e charge
shall accrue In nny manner out of or In con.
PAYMENTS OF FINED ClIAUUES
.l.'.V,'!.JL '"Pnynenta of every Mn.l or
"" '" l"" 11,1 IU O or llxe.l li.irn.
... . '"""I 01 iixei ciarges
ll'uJ hS ",c ''"'"luiiy. at the .late ,, p, n
whirl this contract shall become rflect ive.
..-, , n "l " rc-nniiiiiB ot sin li molt
age lease, dictating ngieement or other
rorm of contract as shown b.v the audit to
be made ns of the date uin i,ii. .....
, ,. , ...nil till
ll
three-cent exchange tickets shall be sub
milled to tho commission by Initiative of
the board nnd shall bo subject to the order
of tho commission made In connection with
a determination of the faro requirements
under this contract t'ntll the abolition or
modification of the said exchange tickets
y the commission ns herein piovlded or
their abolition bv the (Oinnanv. the com.
pnn.v's dividends to Its stockholders, paid t
."i" ine gross revenue, shall not exceed
tlvo percentiim (5) per annum The op
erating sutplus In excess of the said five
percentum (5"lf dividend to tho company,
that may bo accumulated from the date
upon which this emttnet shall become ef
rectlvo until the abolition or modification
or the said exchange tickets, shall bo held
and used to make up rrom timo to llmo nny
ueflclts In icspect to the pa ments to be
made from the Kr, revenue specified In
Article . An ndvances made out
or the svld opeiating surplus to make up
tho said delleits shall bo restored by pay.
ments as specllled, to tho extent approved
I'.v Ihe board out or the subsequent gross
revenue or the unified system
At the termination of this contrnct on
luiy 1. 19..7 or thetenfter. any nmounl In
tills operating surplus fund shall be divided
equally between tho city and the company
nEPItlX'IATtON RESERVE IVNDS
From the ilnlo upon which this contract
Htnl become effective three separate de
preclatlon reserve funds shall be set aside
by the coirpam out of the gross revenue
nnd paid to the hoard quaiterly In amounts
and according to n classification to be de
termlned from tlm,, to time bv the board.
as follows
Fund A Pepn-clitlim reserve fund for
thoclty's transit rtcilltles
Fund II Depieclation revrve ritnd ror
tho transit r.icllltles to be furnished by the
tompany for the cltv.
Fund C Depreciation reserve fund for
tho company's svstem
Tho board mav it.issify transit facilities
ror the ilepieciaiion or which anv fund Is
created and apportion the amounts In the
several funds according to such classifica
tion That portion of Fund A which shall
be set aside for permain nt stiuctures of
tho city's transit facilities as per the clas
sification detvi mined bv the boatd shall be
stnrled ten vear after the .late upon which
ibis contract slull become effective, and at
110 timo Shall the nnmi.tl nunrnnrhMnti .
tho said portion or this fund eced one
hair (ij) of one per (cntiim of the cost
of the said perniineut stun Hires
Anv saltngt 01 pro.e.ls fiom transit
f.ullltles ictlted from set v tie shall bo paid
Into the appropilate rund
v., ,.,., suu. uicicase or prom snail lie ap
plied to reduce the cost or the said tr.lnslt
faclllty
RECORDS nt.' f'fiST
The city shall provide vouchers to cover .
all Items of the cost of the cltv's transit
facilities, and these vouchers shall be acces
fclblo for inspection and audit by teprescn
tatives of the company and of the boatd,
nna snail tie matters of public record
e. contrnct slut. t.. ..,. -. ."'
transit facilities which ,.,v. i, ,in,J l. aW' '" ci.eci.ve. as ptovlde.:
e"l)) 1 iBcil by tho installation or trial of the Item I Interest in,! mm In,, r , ,
. tiansit facilities to be furnished by the ments on new sccurlUei , Ziu " ,n';
Uoni f,nlPany fr th" " or ''J' Preparation sinking r.indpavme i ? "new ! n,t ,' mL
tlo ) therefor : and the costs and expenses In-, of the Company". Issued s L iXd v
ig In- cm red hereunder shall be charged to the tide 1.1 ' provided In Ar-
Item r, rajments Into the depreciation
rundrff ',",', ?"", ,1,P r'"'""'cy rcse "
rund of the unified svtem.
tuiiiis, ; cost ot transit facilities to be furnished
nectlon will, nnv ,rn... -," .u..' ... J" " I ' "'" company ror tlio city
' -'.. t-iv-llll,? , uif illlHJUIIl
PI TV Tn Tr.lM' IPiM'tsu
- - : it-.n r. . . .
After the companv shall have taken oos- r. . " ..'"'.. r" I''J ""flits due to the cltv
li, a !.,-. t ... 1 nn-inn 111 11
I session of the cit.v's tiiti-ll facilities the I ,,,, ; y j, " ,T "r ""I nnd Md..
.. .....i ,. , 1 ""...ij line, or the co mn.iiiv n 1 .., m,..
i.,...,...iij r.u.i. iiei.iio me i.iy 10 nave ncccsH . fir i..... , . ,,,, . ",, ," "'
to the same at all icasonable times foi thel ,,o n '. n ne L . u, , 't?W U' chirters.
purpose of commoting anv of the cltv'.s ...!. n ' "''V" ,,H ' !"?" he city undei Sec I
transit fielim .,,i f,. ,i, ....... '..r """ . "' "' """ ''" contract; (c) Ibe
......-.. -v.iivil - iki l'l tin- iriin'WU "I t
nurtio'-o
making iilteratlons, additions, extensions,
replacements or renewals. The company
shall also permit the representatives of the
The company shall provide vouchers to! department to have access to any of the
f-dlltl
's as shall be necessary to provide
rell&ble servl-a
The trnl, ,.iiiii. a ,-1-.- t...
H Um . ---" latuuiea 10 oe xurnisiieu uy
i J" Mmpany shall be of the best character
r. ti - the art f electric railway opera-
E ,. na a" facilities provided from time
j,'thr.f1 and rePars thereto, substitutions
IS .ik.-I an1 replacements and renewals
BV.iV, .' 8nau be f such character as to
! thnS ln, ,tl16 faculties at least equal to
B i-tton. 1 Rl,y provlded Bnd "ha". In ad-
K Ul ?. i,,',1" aft may have developed ; and
B ... 5iUt es t0 he furnished by the com-
'Umii. l De ,n accordance with the sped
tlons of the board.
"AYMENT fVK rTr.Ti.n'n n..np
2 . T"" City Shall nilV fn- nil Romans .,lr.,
& r cons.ni ,,. .' -"'""- "'
I-. Mrtt. 1 , '"" lo leal 1'ioperty or any
P v.?"'a 'n land taken. Inti.re.l or ,1es,roved
yrt. con8.tructlon'or operation of the city's
to tt,. a,ld 8Uch PaymentB shall be charged
rovin.i:OBi. of tha city's transit facilities .
-ttirmi ' novvover. that the board shall
tti .i". t0 wnat extent property dam
city', .."B from the operation of the
to?: ra sha" be charged to the operat.
1 To ? h" f tlle unlned "ystem.
W DubM- v.cn. un win Desi serve 111
W ttents' unt" 0,ner routine arrange-
K. Iem.1 . "raerea uy the board, or otner
rh D?h u for tne -''rankford line and the
E U u,ert ' "ne ,n wnoIe or ln Part sha"
J kits. 1 " a connection Detween, ana ter
I Birby line " I t0r' the Frank,ord and
1 iii t ProPrtlon of the maximum train or
& 2,,rp.aclt' which may be assigned at any
i.t, .. t,mo to each roule usln the
termlned by the board.
I rouinr atock provided by the com
jTO.'hei.MarJcet, street line -hall be
r vvsivv,9n 01 im rTanKxora u
10XMZ?T?iT8?$&';
io2Kifiai'& ".. . j . ,1 iraiia
cover all Items of the cost of the transit
facilities to be furnished ly the company
for the city The original vouchers and can
vasses of bids for raid transit facilities shall
be accessible for the Inspection and audit
of tho boatd and of the City Controller, and
shall be mattets of public record,
PAYMENTS OF INTEREST
The city shall furnish and expend from
timo to timo the funds requited to meet the
cost of the city's transit facilities and the
total amount of such funds expended before
any given date ns certified by the board
shall bo considered the tost of the cltv's
transit facilities ns of that date.
The company shall pay to the city from
the gross revenue as specified under At title
XXII, paragraph 1, Item 7, the Interest
and slnkln? fund charges cumulative as
and when earned under the terms of this
contract, on such bonds ns may be issued by
the city for the cost of the city's transit
facilities, ns certified by the board, before
paying any dividend or dividends to Its
stockholders from tho gross revenue, ns
specified under Article XXII. paragraph 1.
Hem 8; provided, however, that Interest and
sinking fund payments on the bonds Issued
by tho city to pay for the cost of the city's
transit facilities constituting each Individual
operating section of the cltys svstem re
spectively, shall not be chargenble against
or paid out of the gloss revenue imtll after
the expiration or one ear 110m me nine
or the beginning or the operation by the
company of such section
CAPITAL, REQUIREMENTS
Tho company undertakes to obtain from
time to time sufficient new capital to meet
Its requirements for additions, betterments
and extensions: to Us own system, for re
funding and other capital expenditures, and
for the transit facilities to be furnished by
the company for the city.
The method of procuring the said capital
shall be approved by Counolls as provided
In Section 3 of the 1907 contract.
For the putposo of amortizing the new
capital furnished by the company during
tho term of this contract, there shall be
set aside as a sinking fund for tho amor
tization of each Issuo of new capital, out
ot the gross revenue of each year, an
amount equal to one percentum (1) or
the par value of the securities and capital
stock of the company Issued and outstand
ing for such new capital as tho same shall
havo been approved by Councils under
Section 2 of the 1907 contract; provided,
however, that tho sinking fund on each
ssuo of new securities and new capital
stock shall not begin until .five years after
the date of Issuo thereof.
SINKING FUND PAYMENTS
c.i.,1,1.,,. fund oav ments on account of
shares of new capital stock of the com
pany Issued ln addition to the thirty mil
lion dollars ($30,000,000) now authorized
and outstanding, shall be made to he
Sinking Fund Commission. Sinking fund
payments on account of bonds, note- or
oYhor securities shall be made to the trustee
for the issuance of such bonds, notes o.r
securities. The said trustee shall from
time to tfme Invest the amount of the said
sinking fund payments In the said securl-
ies Provided they can be purchased I at a
cost not to exceed one hundred and five
mrcentum (105) of the par value thereof
with accrued Interest. In case such se
curities cannot be so purchased, the trustee
may Invest nnd reinvest the sinking fund
such securities as may be proper legal
nvestments for trustees under the laws
of FeTnsylvanla; nnd all Interest and
profits accruing from tho estment of
he said fund shall be Invested In ke se
curltles for the benefit of the said fund
The Sinking Fund Commission shall,
subject to the provisions of Section 9 of
?he 1907 contract, Invest and reinvest the
said sinking fund payments. '
The interest and sinking fund Payments
nn bonds, notes or other securities, and
the dividends and sinking fund payments
Mlttenaf capital stock ol . Mk .company,
ir and as Issued to meet new capital re
qul?emems of the company and approved
i2y .TlalleTrea'ted as add. .on.' nxed
chargeV'of n?cVm7any and shall be paid
out of gross revenue,
city's tinnsit facilities at all reasonable
times and shall furnish the necessary con
veniences for the Inspection thereof by the
said repiesentatlves
The company shall also nt all times per
mit representatlvis of the boatd to have
! access to all parts of theunlfled svatem
1 for the purpose of Inspecting the transit
I facilities thereof and the service thctcupoii
and shall also furnish free or chargo such
conveniences and ttansportntlon ns may be
lequlrcd ror such Inspection.
DISPOSITION OF COMPANY'S FUNDS
Immediately after the organlrnt'on of the
boitd the companv shall turn over to the
board, for Its ciistodv and administration
under this conttact. the caMi and securi
ties which It shall on the date upon which
this contract shall become effective, have
accumulated In Its lesenu fund foi teticu
als, together with cash or Its equivalent
equal In amount to any excess of tho com
pany's renew'Tl rcservo over Its reserve1 fund
for renewals. Thereafter the said cash and
securities slnll be a part of the deprecia
te pay the company's current liability jn
The company shall ictalu all Its current
assets and assume and pay all Its current
liabilities ns of tho date upon which this
contract shall become effective and the cut-
rent assets of the company uhlih It mav
CUSTODY AND CONTROI.
The funds thus set nsldo shall be In
(barge of and under the control and dhec
tlon of the boatd nnd slnll be held for and
applied to lepilrs to nnd tcpl-ircim-iit and
lenewals of portions ..r the unllle.l svstem.
the iost of upalrs to which or n placements
' "-ins or which slull not hive been
hnrgtil to maintenance and Included In the
operating cxpen.es of the unified sjstem
whenevei 11 transit faclllty or pilnclpal
patt theteof, slull be tetire.l from sctvlce
an amount equal to Its cost shall be with
drawn from the nppiopilate fund upon the
tequisltlon of tlie louipanv, nppioved bv the
board, and shall be expend. .1 If, as" and
when neeile.l on n new transit facility or
pilnclpal part thereof foi the leplaccmenl
01 tenewal of which such fund shall lnve
been set aside
An amounts in such funds not curtentlv
miiliil for the purposes lieteln spciille.l
shall be s.curely llivest.d and relnv.sti.l
bv the bonnl In the bonds, notes 01 otbet
securities or the comp mv piovlded they tan
be purchased, nt a cost nut to xiceil the
lur value thereof with a.ciiic.l Intel est, 01
In such securities as slull be legal Invest
ments for trustets under the laws of I'enti
xvhanla. and all Intetest and profits acciu-
DIVIDEVD PAYMENTS , lnE theieon shall be Invested f.u the benefit
Items Dividend puments to the sunk. ' "f sllch fuml Tlm ''oatd shall have the
holders of the c untnni ..,. ti, .1,1... 1. , ' "' to sell such InvritmenlH to meet cm-
lion dollais ($30.00.nnii r ,..,nii..i s.i, f . " '' "Mlls "" for the puipoes of iclnvest-
the companj, now authorized nnd Issued,
such dividend pavments to be subject to the
pinvlslons that during and for the period
sinning rund pavitieuts piovlded In Xeeii,,,,
3 of the 1907 contrnct
Hem 7 Payments into tho city rrensurv
equal In amount to the Intetest and sinking
fund charges on the cltv s bonds issued foi
mi- 1-n.v s transit racllltles as provided
Aitlcle XII hereof
In
celve Interest and sinking fund payments
for the snld quarterly period.
(c) The cost of the city's transit facil
ities upon which the city Is entitled. to re
reive Interest and sinking fund payments
for tho said quarterly period, as per the
statements of the City Controller and the
director, furnished bv them lb the board
AUDITINO OF ACCOUNTS
A complete audit of the accounts of the
company. In form prescribed by the director,
shall he made by public accountants nt the
expense of the city as of the date upon
which this contrnct shall become effective,
nnd thereofter the accounts of the company
shall bo audited annually In form as pre
scribed by the board by public accountants
mutually agreed upon by the City Con
troller and the president of the companv
nnd the nudll In detnll shall bo published
and submitted to Councils nnd to the com
pany For thai purpose the city shall have
aciess to the books, records nnd memo
randa of the company and may require the
examination, under oath, of nny of Its
officers or employes, tho cost of such annual
audits and examinations shall be paid by
the company as part of the expenses of the
unified s.vstem
If exception be taken, either by the pub
lic accountants or tho City Controller, to
the pioprlety or nny charges nppcarlng In
the accounts , t the company, or by either
the public accountants or tha companv to
the propriety of any chatges appearing
In the accounts of the clt.v, ns to the
iost of the city's trnnslt facilities, the
board shall pass upon and finally deter
mine for nil the purposes of this 'contract
the propriety of the 1 barges ti which ex
leptlnii shall have been tnken
WAIVER OF DIVIDENDS
The company hereby waives the cumula
tive provision under Section C of the 1907
contract ns to Its dlv'l.leiids fo- the period
fiom January I 1107. until the date upon
which this contract shall become effective,
except thai In Hon thereor tho company re
serves the right to distribute to Its stock-
Holders, nfter five jears from thc date upon
which this contract shall become effective,
the then remaining surplus of the company
accumulated pievious to the date upon
which this contract shall become effective,
ns provided In Artlclo XVII
The company shall keep reasonably In
suied ngalnsr Urn nnd other usually Insurn-
we accident or rnntlngetirv nil ptnperty or
the c'tv s s.vstem liable to be damaged
thereby, nnd the policies Tor such Insurant
shall be kept separately rrom those for
other ptopcrtv of the companv. The Insur
nnio policies covering any of the cltv's
transit facilities or nny parts thereof shall
be mado pavablo to the city
In case of damage to or destruction of
anv or the city's transit faclllt'es by war.
lint llnod eaitbquake or other eMrnoidl
narv oicurtcnce nol otillnnrllv Insurable
.and genet nil) comprehended under the term
art or Cod or vis major, the same shall
be tepiircd or replaced by tho city and
.barged to the cost of tho cltv's transit
faclllti.H
RIUIIT OF ltECAI'TCUE RESERVED
111 addition to the right leservert bv th
rlt) tinder Section It of the 1907 contract
to purchase nil tho property, leaseholds
and franchise of the company on n- nfter
July 1, Iftr.T. the city shall have the light
at anv timo between July 1, 1927. and July
I. Iir.7. upon giving the company six months'
notice of Us Intention so to do, to termi
nate this contract, recapturo Its own prop,
ert) and adiulro all the company's prop,
ert). leaseholds nnd franchises by paying to
the company at thc date named In tho said
nollco an amount equal to the amount
which has been paid In upon all of Its cap
Hal stock outstanding nt the time of tho
purchnse nnd recapture, together with (a)
nnv dividends on new r.mitni -ini, .'
paid nil amount equal to any unpaid por
tion of dividends In each )ear at the rate
',',, .nn.",".',!!!n,!lUe hundred thousand dol-
Izi
ter ameunt ahatl h jsidi .
comoensatlon to (he company fo
minatlnn nt h, .'' .,..! .
1957 ln the eveitt of inch termliwtli
capture nnd purchase, the city, shell
....,., ui Vay nu au- una accruing; cur
i.Hoxmcs 01 mo company. Including
ages and nxed cllarr-s. and will tx
tilled to receive and make use of the.
crating casn Dalnnccs, damage reserve 1
operating surplus fund nnd reroa I
for tho payment of fixed charges tn I
iiHiius 01 me company or whtcn shall 1
accumulated In the sinking fund prov
for Under the 1907 contract. All r1,nn
linn reservo funds nnd the contingency '
serve nmu in ine possession or the be
shall pass to the city upon any such
initiation, recapture and purchase, ,. '
SURRENDER OF CITY'S FAC1L.ITI!
At the termination of this lease the.ee
pany shall surrender to the city all of 1
city's transit facilities In good condition as
repair, except for natural deterioration .
ordinary wear nnd tear, 'f
The company shall assume nnd save the) 5
city harmless from nny and nil claims"!
court actions, nnd expenses nnd costs
rident thereto, arising from Injuries top
sons or property caused or alleged to haVeUJ
tieen caused by any net of negligence of tho '
company In maintaining and operating tho:
curs s)stem or in furnishing trnnslt faclll-'
ties for use by the city. All pavments made.
by the company hereunder shall be charged J
to expenses. t-
... ... 'J
riiuiioiu.,i i.n i,ii ur ukkaui-t U
In case of the default ot the compahjrjj
f 1. l,llf )!! . in nh.ar- lni nna futflll una 1
" .....,,., ...,. .., tui.iii tt.ir i j
of thc conditions, obligations and require, J,a
ments of this iense, the city, upon reason-
able notice to the company of its lntentloaf"S
so to do, may, nt the expiration of the sald-s ?!
mi.tnA r. .tl.t.i ...... ... ... ....... .. . . tl
,iu,, v .1. ,,,in, pmi, lu.tl.u! ....in h ,iwix(,i
be allowed by tho city or by the court: 'vvf
First. Enter upon and, as agent of the,
V '
Contlnned en r TlilrtNeiA'
t.y.
tt
ment.
COXTINCSENCY RESKRVE FUND
lleginnlng at tho expiration of ten vJais
..., ,-... ,.j ,,er jear from the date
upon which this contract shall become ef-
after thc date upon which the innttnct shall
become itTectlve. thero shall bo deduct, d
qiiatteilv fiom the gloss revenue a sum
i.i 1 1 bo set asi.lo as a contlngcnc)
Issued, and that after tlm abolition or modi
llcatlon of the three-cent ex.li.uiKo ticket,
ai- provided under rllcle .Will, the di.
dend irte under this Item shall not ec. ed
i per cent per milium, cumulative from nn.l
aftei the (late upon which this contract shall I
become effective.
Item 9. I'a) ments lo the Sinking Fund
Commission, equal in amount to 4 per cent
upon such portion of tho city s bonds Is
sued for the city's transit facilities, as pro
vided In Article XII, us shall have been
letlred b) the sinking funds for the same,
thus terminating the pa) ments on the same
under Item 7 hereof
Item 10 After the order of the rommls-
v i simi In teganl to three-cent exchange
have acquired prior thereto shall he used 1 l h" s s'u "nve neen mane tne amount
to pay the companv's curretn liabilities in- '" ",,1- i""'-" "" " n- "
eluding fixed ehaigcs incurred or acciued ' time by the boatd. but the amount nii-umu
pilor to tho sn'd date, and the balance shall I lttll'' "' ll'c said opeiating sutplus fund at
be available for the company's purposes ( "v "o after the said order -of the coin
on., ,.. h ,ils,rii,..,,l tn tbe comn.inv'.s mlslon shall not exceed $2,(100,000
when the present three-cent exchange tickets
leninln In use ns provided under Artlile
a.xiii tn dividend payments under this
item snail not exceed S per cent per annum ,,,,,,,
.... ,.. .... ..,...., ., ..... , .... ........ . ... i in. n
i. .,,., -in. ...imu.i sunn i.s iiiiiiiiincil 1111(1 ' ... r,i ,.i, .if f
" ." ....... ... .....
I per cut of the gloss u-Veiiue for smh
quaitci 'I'liH fund shall be In ihaige of
and under the contiol and duiction of tlu
boatd, and shall b se. 'inly Invested and
I " "
I
i
, COMM6IxClflLAftM
.STdTIONe&YW5J
Mann's
Shen-King"
Manifold Paper
For the Cnrbon Copy of
Your Business Letter
Made by us especially for
this purpose.
Adopted by 60tf of-railroads
of thc United State
for waybilling.
Yellow in Color
Light In Weight
Tough in Texture
Try 500 Sheets, cut
to Size 8"-xll Inches 40c
Pione .VcirA-t (
WILLIAM MAM COMPANY
Ulank Book 1.301 lritf
Matlonfry
ITlnt'nc nnd Mthotrnnlilni;
529 Market St.
I5
V&.1
fVitJ
I'rHO
nnnviSlONS FOR FAILtJnE
i; tM82KX'& ArTl'c'le
operation of any part of ti he clty
K d..f,rt. anVfacllllieV-th'' ?.rt.""
ilv;u.Vebmpanyotlce of eucr. aU(. , ;'-. ,. - j. -C ,
stockholders nfter five jears from tho date
upon which this contract shall become er
fectlve In lieu of the d'vldends waived un
der Article XXVI I.
OPERATION OF BOTH SYSTEMS
From the date -upon which this contract
shall become effective and until tha Initial
operation of tho first individual iperatlng
section of tho city's sjstem. tho company
shall operate Its own properties as here
tofore under nnd subject to tho terms nnd
conditions of the 1307 contract, and sub
ject to the terms and conditions of this
contract.
Ah .soon as the first Individual operating
section of the city's s)stem shall havo been
completed and the company shall havo In
stalled tho transit facilities which it Is re
quired to furnish for imo thereupon or In
connection therewith under Article V of
this contract, and from time to time as other
Individual operating sections g. the city'
system shall have been completed antj the
company shall have furnished tho transit
facilities which It Is required to furnish
for uso thereupon or In connection there
with, tho company shall assume operation
thereof and shall combine nnd consolidate
the rperatlon thereof with the operation
of the company's system In order to give
the public one unified s)Siem oi transpor
tation. ....
Subject to such limitations and rights of
revocation as the board may Impose, the
company shall have the right to place adver
tisements of unobjectionable frrm and
nature in cars and stations of the city's
system, and to establish news stands and
other vending privileges at such stations,
but tho company shall submit to tho ap
proval of the J oard the contracts for
leaBlng such privileges.
Subject to such restrictions na the city
may Impose, the company may use the
unified sstem for tho carriage of freight,
mall, express and other unobjectionable
transportation matter; provjded. hmvever,
that such use shall not Interfere with the
use of the s) stem to Its fullest capacity for
all passengers who shall desire to be car
rled thereupon. Within the limits afore
said the city may require the company to
carry freight, mall, express and other un
objectionable matter.
PAYMENTS OF RENTAL
Aa rental for the use of the city's transit
facilities the company shall make payments
to the city as specified In article 22. para-
graph 1. Hems 7. 9 and 11. as and If earned
by the unified system. Payments shall be
made quarterly on or before the 13th day
niaoo 'iu' w . , . -. October
Covering the operation for the hreeMonhs
periods endlng--Jecen"' . ;","" -30
and September 30, respectively, and cny
readjustment of payments that may be
necessary shall be made w th the settle
rnentfor the next succedlng quarterly
PeThe' four quarterly, payments covering
nnv year thus made 'to the city will be
"the annual current net revenue" to the city
un It-1 Investment !n transit facilities
within the meanlnr th- amenument to
section S, arttcie u- " -.-..-...- v.
Item 11 The remainder of tho gioss
tevenue shall )0 divided and paid CO per
cent to tho company and 50 pet cent to the
Sinking Fund Commission.
Tho foregoing payments will be cumula
tive In the order named, nnd In case In nny
)ear tho gross revenuo shall not bo sufll
clcnt to make the said payments and nny
balances unpaid for former years), the de
ficiency In the said payments shall ho made
good from tho gross tevenue of succeeding
years for each Item before any payment Is
imado therefrom for any Item subsequently
specified In paragraph 1 hereof.
RATES OF FARE
Tho oompanj's sjstem and tho city's sys
tem shall be operated as a unified system,
starting as the company's sjstem with the
cash fares nnd free transfers now In effect,
and ns to the city's sjstem with a five
cent fare and free transfers for all pas
sengers transferilng In a forward direc
tion, ns follows Between all lines of the
cltj'"s sjstem; between all lines of the cltj''s
system and the Market street lino where
communicating stations exist nt points of
Intersection ; between all lines of tho city's
s)stem and the piescnt surface sjstem or
extensions thereof wherever the lines of the
present Hurrace s.vstem or extensions thereof
interesect the lines tf tho city's s)stem, at
station points outside of tho delivery dis
trict, within Philadelphia,
Whenever the gross revenue for any
two consecutive three months periods, as
shown by the statements of gross revenue
and deductions from gross revenue, as certi
fied by the board. Is not sufficient to pay
the first seven Items as set forth In tho
fcTegoIng and the sum of six hundred
thousand dollars ($600,000). being nt the
rate of four per centum per cent) per
annum on the thirty million dollars ($30.
000,000) of capital stock of the company
now authorized (the fairness of n four
percentum (4 per cent) dividend being con
ceded bv the cltv under this agreement).
the city hereby agrees to join with the
company in an earnest appeal to the com
mission to order a Just and reasonable fare,
which may bo by flat Increase or chargo for
transfers, or both, on all or nny part of
the unified sj-stem, which fare will produce
at least sufficient gross revenuo to provide
for the first eight Items.
EXcflANQE TICKETS
In order to assist Tn tho accumulation of
an operating surplus fund to be available
In case of a temporary shortage of gross
revonue of the unified sjstem during the
period of the development of the city's system,-
tho company may, until the date" of
the beginning of the operation of the first
Individual operating section of the 'Broad
street subway and delivery loop, and there
after until the order of the conltnlssin, ns
herein provided, continue to Issue three
cent exchange tickets upon nnd between
the lines of the company's system, upon
and between which lines the said exchange
tickets are now Issued. Immediately after
the date of the beginning of the operation
of the first Individual operating section ot
the Broad street subway and the dellvety
loop, the abolition or mooincnuon o. un
k --...; . " . t
mmjy$&
. ixtcrda I,(IU0 Aim the pa.iincnls to tnuh
fund shall be suspend,, I and Ititcict theteou
shall bo p lid Into gloss tevenue. If there
after the amount in this fund shall fall
below $1.0011.000. pa ments at the l.iteafore
said shall bo lestimid until the amount In
tho fund shall again ex. eel JI.imiO 000 Such
fund; upon tho tequisltlon of Hip companv.
appiovcd bv the board slull be ue. to pav
extimirdlnai v operating expenses and ex
pense., due to other . ontlngeneles not piop
, il chaigeable wlmllj against mi) one
fiscal jear At the termination of this con
ttact nil duly I. I"57. or llieieafter nnv
amount in tills fund, nfter making pinper
allowan. e for ncci tied accident and damag, s
..(count, slull be divided 50 per cent to 111.'
city nnd fin per . ent to the company
ACCOl'NTS AND Al'MOTS
On or heroic the thirtieth day of Janu
ary. April. July and October. ,f each year,
the company shall deliver to tho City Con
troller statements, certified by the board
and In form nnd detail as prescribed by the
board setting forth, for the three months'
peilods ending December 31, March 31,
Juno 30 and September 30, the following,
(a) The gross levenuo and tho deduc
tions from gross revenue for the said three
months' period, ns specified In Articles XXI
and XXII Theto shall not bo included In
such statement any amounts for expenses or
fixed ch.uges Incurred or accrued prior to
tho date upon which this contract hall be
come effective.
b) Tho amount of new capital furnished
by tho company as specified In Artlclo XIII,
upon which the company Is entitled to re-
0mk
Mw
70.
Per Covrtxt.
3-16 Carat,
$10.90
1.4 Carat,
$16.25
1-3 Caret,
$23.10
1.2 Carat,
$35.00
The splendid
brilliancy of these
gems is all the
more remarkable
when you consid
er the extreme
lowness of the
price. And these
diamonds cer
tainly do show
brilliancy, and as
for x'alue, let us
take the usual
price of $105 per
carat for compari
son. Mail orders
filled.
rEMS
.ItpOli-HtlS AT WHOLESALE
t&ri.'-yn
r ritrm
T:r--o
Men of the New
National Army
Prepare Now to Become
Non-Commissioned Officers
Men of this city and vicinity selected for
our New National Army can receive prelimi- '
narv military instruction by drilling with one
of tne local Home Defense units.
Competent instructors provided Drills
held on grounds or in halls or armories well
adapted, to the purpose Guns furnished No
expense entailed in any way.
By attending thftse drills regularly from
now until you are called to your Training
Camp, you will learn some rudiments of mili
tary training such as squad drill, close forma
tion and manual of arms that will give you a
considerable lead on your comrades, not so t
trained, in securing the rank of non-commissioned
officer.
Look up your nearest Home Defense unit
and apply to its Commanding Officer. A
partial list of these organizations is as follows:
CHESTNUT HILL VOLUNTEER RESERVES,
GERMANTOWN MINUTE MEN,
GERMANTOWN CRICKET CLUB MILITARY
ORGANIZATION,
MERION HOME DEFENSE RESERVES,
HAVERFORD RESERVES,
OAK LANE RESERVES,
LANSDOWNE RESERVES,
RIVERTON RESERVES,
JENKINTOWN MILITARY TRAININGORPS.
i
In addition to the above, drills will be held
on grounds or in halls in the central part of the
city, and in other sections not in the immediate
vicinity of one of the Home Defense units.
Any information can be obtained by ap- $
plying at the office of
Military Training Camps Association
Phone Sprue S2SI
Room 117, Commercial Trust Building
15TH and MARKET STRJ3
V
','(ri,i '
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