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. . " '--
EVENING, Bt)(ERPHILlDELPHIA, FRIDAY, SEPTEMBER 7, 1917 -
'ii -
jTH-MITTEN LEASE . CONDEMNED AT COUNCILMANS HEARING ON TRANStT teWl
IVE-CENT FARE
VITAL IN N. Y.
r -
-fee Transfer Likewise Im-
itively uemanae
Transit,System
L0 TAX ON CAR RIDERS
BV a Staff CorrtfpoiHent
kjt.'W VntlK. UtaL e.
l .. .. rome to this city, which Is com-
Win the expenditure of nearly half a
&!... dollars on rapid transit lines; to
Tout, what experience has taught In
!t " n,,d ;omlllcle as'ecment on .one
' . ...tlnn. limvever vviaeiy wio c-
slinera .,.. ot, incidental nrorio-
. Uri may
r, i" -
' iTli agreed that n nve-cent fare with
'?:; ,n,.t h nreserved at all
ITM,Xand that whatever deficits there
bUl?& In the operation of the rapid tran
(' my M ln " . 1.1 .nmo other wnv
It Un muse ... -----
r". ... ..!.. nn the Ideal method of
- ?i, the denclt or of avoiding It. The
'""""hiM, l,is been worked out. however,
. iin which nas """" .,,,, i,,.
W ' ""Thr,9 iTZt thV de'flcit'. shaU he
It- ft. levied uniformly throughout
itf c ty. ... .
I' Th.i this is not the best plan IS i e opin
io . Tf Velson P. l-e-ls. chief engineer of
rr.len of J,?'!"t,.m.iB mid Annortlonment.
K t St.. ta doubt.es;, the fjeatest Amerl-
1 ind flnanci" . , , --...mrnent of
I' WoT;Cu generation. It- l. been
.' New orR ' ... ,7...i,i. ii il. recent city-
5:&rSSr,t- metropoljs. He Is
inown throughout ';
kU painstaking tnoroug n
Jnowledge.ot his specialty.
aaaraae - -
fledge oi "- " -
nrVKKlTS AND ASSESSMENTS
"As a general principle," said he to me,
1 can fee no difference between open r,g
n 9a" . . ,i i.wlne the cost upon the
IroDerty hendflted on the one hand and
I ffinga-rapld transit railroad and levy
i ?u . ...T ir nn nil. the cost on the prop
's' fy whose value will be Increased by the
'. "'IT. n'the other hand. I know there
A ire men who disagree with me. I ex-
? tha I read beforo a city planning confer
.' tnce In Boston a few years ugo, and I
f! have seen no reason to change my views
f Ihould be Invariably recognlied, namely,
f where there Is local benefit there should be
V lolassessment There can be no Improve-
ment which has been Intelligently planned
S'infl executed which will not result In some
W . .... 1 1 fntlnl.ID Ilia. tllAr BlimilH
Kal Denem, am. n ."" - ......-
Iv be some local assessment. No im-
K jirovement, however small or however large,
fc will be of equal benefit to the entire city,
;& jiD.plhiitA thp hnrden of nav.nc for
w It over the whole clty'accordtng to taxable
T 'lues Is unfair In that it Is not placed ac
1? cording to benefit. The owners of property
In the Immediate vicinity are frequently
mrlchtd at the expense of those whose
1 3' boldings are entirely outside the district
,? directly aneciea.
1 "Perhaps this statement should be so
I' qualified as to exclude certain great lm-
5, provements such as public buildings.
V MAvu Hnnlq nml rnnld transit lines, and
$ Ttt there is doubtless a local benefit re
,Z lultlng from thete. It may be uiged that
' luch things are not Included in what Is
ft I.. I1..1 ... l.nnl..H ' I, .n (Ua
KDmmuiuy i:aiii:u tnj ijiaii.it. . .. nu, i.n.
definition of city planning needs revision,
Uf for they are certainly most essential parts
iy of any city plan.
fig 'The City Ciub of New York several
years ago showed that as a result of tne
building of the first rapid transit subway In
Kew'Vnrk the actual land values In those
portions of upper Manhattan and the Bronx
4 which veie most directly affected were
I,'4 within seven years Increased $80,500,000
iV tuvto lite nullum inuicuac jui iiiut, ptri luu,
-'' ThA rrHt nt thnt nnrt nt IIia nnhitnv ti.lan
Ing through the districts where this rise ln
-values took place was about $13,000,000,
while the cost of the entire subvvjay from
the Battery north was $42,000,000. It is
quite evident that If the $13,000,000 which
was spent upon that part of the subway
traversing the district so notably benefited
had been arsessed directly upon the prop
erty, Its owners would still have netted a
I neat profit of some $67,500,000, while .had
the Cost of the entire stihwnv heen naKpssed
i, upon the same limited district the net
i9 prout to the land owners would have been
! W,600,000.
"Was it quite fair that property In d(s
jB tant parts of the city, entirely unaffected
;t, iy thli great project, should bear the same
1 proportion of the burden as that which was
H o conspicuously advantaged? It is true
; that this Improvement is entlrelv self-ann.
Js Porting, interest and amortization charges
. ,...., ,uvu ,,1,,,, lllcl jciiiui i.uiu uy ino
m& operating company: hut the local benefit
it " " cIcar'y established that the rapid
$ 4i law was so amended as to permit
Li the assessment nf anv nnrt f tv, .
l of future subways. Many new subways
i1 ;,r,,T U""B P'annea, nnd some are being
ij. Jullt, but it ii doubtful if any of them will
Pi hlehlng the most Intensive' traffic having
i Men followed bv the line flpt hi.lu fh.
" fropr,y """era along the present operat
ic Jl . . haU"f secured their benefit without
" .1. V . ' . "0S8 alonB 'he proposed line
J4 J! !l? ,ntllU8'astic about being assessed
'4 ik.i It! '. J'a tncre eeins little prospect
d that the right to assess will be nvalled ot
it yince, l wroto thl3 l,aner certain property
a f- iiln Broollyn petitioned for the bulld
f lug of atrapld transit line to be paid for'by
5 .n.'i,"?"nt " t,la ProPerty benefited. We
I ... i.u,l,tt p!a" and 'naPPed assessment
"? ?1T J1IoIder" ot larBe sections of unde-
,"i Bavth...... . . l'.i:tiijr WIIIIUK VO
-- - -".ca.Miien.is invoivea. Dut the small
ha. Ity, h2ldcr,s ouJected. and nothing
Snf.fTu ?f.,ne plan' Yet It "ems to me
.... Kimi me persons m the lower end of
tn. borough of nichmond. for Instance
?tr.n. ii . ' ,,enen'ea a' a" by a rapid
ta,..J lln! in Coro. I" the borough of
tVlUeens. khnnM 1.. -.,, j ..- 7
KaTtti. .. -"--" vuiiiiieiicu 10 pay at
M"e same iate for building It that is paid
EWof "Property owners In Corona, the value
Kffw wnose nrnnarlw I... ... .,.. ,
freawd by the new In..
it TIUNSIT A "SOCIAL INSTITllTtnv
K' Inj'iIThn,'n!03;?ultn,ow there are P"8ons who
ft Inl it,, I ' ali ,aDld translt "ne ar social
!3" fop ii,. ",al " ls lne ""'y or the city.
to carrvSe.ral 00d ot tl,e PePlB at are.
carry thm ni,nnt H ,. ... -.'
ii lia&? Th,ey "" tnat n mil'" 'or civil
HsSB.n.J,y dlsflbutlng population. In Bel-
rat. .. carr' working people at a low
ue of far. f- .u. .., .
tettlntr th. ' . . ". ";"", '"r0". "
Intn ih. ' "ut "l xno congestea cit es
to the country,"
In vid!lcu.3slnff the effcct ot th Increase
lno, n.of.real "ta,e Allowing the open
Jlr t J1' v ,err"orV by a rapid transit line.
4 "ea. t- f .th8 clt1, reduced by this In
off,., in rfal e5tate values was not wholly
WKnir.1'1. e consequent Increase In the
oDn;.chagel, as the cost of ell street
Meiu a.n1 Ktvvtra was met by a special
M. fcaM f. . "u ,nai tne water meini.were
1;': 'Kr .ou.t of the water revenues. I A this
lnef.m ." ,akes Part ' the unearned
SSf !!? f.or ,tself and UMS ll n turning
flth clt Inhabitable Streets equipped
Pnlll """."IICIItCB.
ll.pvl;l;0 s'rv' Commissioner Chrle 3.
i.rn,,,!'.y.',,vho.'s " financial expert of the
iooiTir... "' ,OId mo that the commission
vai.7. U,tle account of the Increase 1nthe
.i.'.,.0,.l estate following an Imnrove-
-'i,w. "nsportatlon. .
Jil V- "ald- he. "the effect of euch' In-
...usually counteracted by the 1-
Ht
l
wS1
m
and more policemen are needed and more
sewers and more pavements."
Yet Jlr. Ifervey was ready to admit that
the system which has been worked out tn
New York under which the deficits In dpera.
tlon of the rapid transit lines are to be paid
for out of the tax levy without any In
crease In fares van nKnn. it,. h..t 1,1.1,
,that could be expected under all the clr-
luminances.
'ui'""1 1 fl"kd him about the contracts
with the operating companies he referred
me to LeRoy T. Harkness, the chief of
rapid transit of the commission. In the
course of a long conversation Mr. Hark
ness reviewed tli. liistnn p n,. ..tin.
of the city with the operating companies.
NEW YORK'S SUBWAY KXPEtUENCES
The first subway was built under a con
tract which provided that the operatlne
company should pay the Interest on the
bonds and 1 per cent for a sinking fund,
tne contract to run for fifty years. To se
cure Itself against a default In the Interest
tne city took what amounted to n mortgage
on the operating plant, Under this ar
rangement the operating company was very
soon earning from 15 to 20 per cent on
the total Investment, and when an exten
slon to Brooklyn, to cost about $10,000,000.
was proposed this .company offered to build
It If the city would put up $2,000,000 of
the cost. These lines took the cream of
the traffic on the nmi mn...i.j .ni..
N'o other contracts so favorable to the city
could be made.
The latest contract Is that with the
Brooklyn Rapid Transit Company. It In
volves the expenditure ot aUyiut $160,000,-
i?2iSf..lhl8 Um the clty wl" Provide
$100,000,000 and the Brooklyn Rapid Tran
sit Company wilt furnish the remainder,
out of the earnings the company Is to take
first $3,500,000a sum equal to the present
earnings of Its lines. Then It Is to take
per cent interest or. the new money It
puts Into the enterprise. After these pay
ments fcare been made, the city is to get
6 per cent on what It puts In If there Is
anything left, if there ls a deficit, It ls to
bs met by taxation.
Mr. Harkness Is of the opinion that the
deficit will not continue for more than ten
or twelve years and after that time the
earnings will Increase so that the accumu
lated deficit will be wiped out. There ls no
thought at the present time of making the
riders pay the deficit.
But every new line that Is being built,
according to Mr. Harkness, is considered
as a business proposition that must stand
on Its own merits. It must show evidence
that it will paj- within a reasonable time
without regard to the Increase In the value
of property which follows Its building.
"A city would go bankrupt," said he, "If
It depended on Increases in assessed valua
tion to pay for Its rapid transit lines."
KIVE-CENT KARE IMPERATIVE
It ls proper, however, for tho city to
bank on an increase in population and on
nu tnciease in the demand for transpor
tation, An etpert, he said, had figured
that the population of New York doubles
every thirty years, and the traveling popu
lation doubles every twelve years. It Is
on tills Increase ln the number of users
of the new transit lines that the city ls
dependjng to produce the money needed to
pay the Interest on tha transit bonds.
When I went over to Brooklyn to find
out what they think of the matter here
I found Lewis YV. Pound, president of the
borough, most emphatic In his Insistence
on a uniform five-cent fare, no matter how
large the deficit ln operating expenses
might be.
"What is troubling us here."- said he,
"Is Just Tiow to raise the deficit in the
first few years. It is my personal opin
ion that It would be better to Issue short
term bonds to pay part of the deficit each
year than to pay It wholly from the tax
iate. Then as the deficit grew less the
bonds could be, paid off. In other words,
I would like to spread the payment of the
deficit over a longer period of years than
is likely to be occupied by Its accumula
tion. We expect to break even In ten or
twelve years nt the outside, but we may do
better. At the best we shall have hard
work In raising the money for the first
two or three eats.
"But we object to any .Increase In the
rate of fare. We must carry the people
for five cents and find a way out in some
other manner. I don't believe ln assessing
the property benefited, as real estate lias
to carry too much of a burden already.
It was proposed over here, but It will not
be done."
TRANSIT GRAB LEASE
CONDEMNED AT HEARING
Continued from rate One
NONPARTISAN LEAGUE
TO MAKE LEASE ISSUE
The mystery surrounding the Nonpartisan
League of Philadelphia and the plans for
a transit mass-meeting on Monday next In
the Parkway Building under the auspices
of that organization were cleared up today,
when formal announcement was made of
the fourfold purpose of the league, the part
It Intends to play In municipal affairs ln
this city and the names ot some of the men
back ot the movement.
Plans tor the organization ot the league
have been worked out during the last six
weeks by a number of representative mem
bers of the Philadelphia bar, business men
and bankers ot the city. Within a few
weeks the league will Incorporate and open
permanent headquarters. The membership
will be about 100. .
The first public project to be taken up by
the league Is the transit lease. It is the
purpose of the league, as stated today by
one of Its founders, to frame up so clear
an Issue on the Smtth-Mltten lease that
every councllmanic candidate In the city
will have to take a definite stand either for
or against the proposal,
The fourfold purpose of the league Is
given as follows.
Flrfit, to eliminate party lines from city
affairs: second, to Indorse such candidates
for public office as are not connected with
or ln any way controlled by the contractor
bosses; third, to secure cleanliness and
economy with reduced taxation, and, fourth,
'to oppose any long-term contract which
does not safeguard the Interests of the city.
The transit mass-meeting on Monday will
'cover two sessions, the first at 10:30 o'clock
In the morning and the second at 3jb'cIock
In the afternoon. At the 'morning session
the councllmanic phases of the lease ques
tion will be especially considered. Francis
F. Burch, Common Councilman from the
Forty-sixth Ward, -Is chairman of a sub
committee ot the league which will have
charge of the morning session and whch
Is drafting a pledge to be presented to each
councllmanic candidate.
"Many Independent candidates for Coun
cils," said one ot the league organizers
today, "have come forward with the ex
pressed desire of placing themselves on
record as strongly opposed to euch a sell
put as the Smlth-Mltten lease appears to
be The pledge for the .candidates Is being
prepared so that the voters may understand
thoroughly which of the candidates la not
connected with or In any way controlled by
the contractor bosses, whose monetary In
terest In the leases Is to be clearly dis
cerned." Former Transit Director A, Merritt Tay
lor 'had btjn Invited as the leading speaker
at the afternoon session, but he declined the
Invitation, Other speakers will be S. DavU
Page Evan D. Lewis,. Paul Rellly and Ira
D. Tdarman, Selectv Councilman from the
Forty-sixth "Ward. Joseph P. Oaffney,
chairman of Councils' Finance Committee,
has been Invited to present Mayor Smith's
position on the lease as he understands IU
It Ii tiot certain yet. however, whether or
not'Mr? Oaffney will accept the Invitation.
Robert 8. Bright will preside at the after-
Mr. Bright Is serving as acting chairman
ot the "league until; permanent organize-
v mwi t ewafwssjsh
PJV-
Wl
."
.Wr,-i.
M.'J1.
them nnd have Director Twining reply to
mem.
Mr. Taylor: "I stand on the statement
that I have Just made,
Mr. Oaffney took nnme newsnaner elln-
plngs and read one of the charges made bv
mo lormer uirecior.
"Now, Mr. Taylor, where do you find the
basis for this?" he asked.
The former Director, amid a scattering of
catcalls, again declined "to enter Into an
argument
"I demand an answer to my charges," he
replied firmly.
There was a murmur of applause when
Mr Oaffney Insisted that he answer. Se
lect Councilman f-'eger. however, suggested
that there was no need to ask further
questions, and Mr. Taylor leaned back in
nis cnair.
"I move that when we adjourn It will
be until September 21," said Mr. Keger.
Theh motion was carried,
LEWIS PROMISES REPI.r
Chairman Oaffney then turned to Doctor
Lewis.
"I ask you," he said, "to answer Mr.
Taylor's charges through the newspapers
nnd not here."
"I will do so gladly," replied Doctor
Lewis. "And I want to say that the worst
traitor to democracy Is the man who rushes
Into print with wild assertions relating to
Mich Important subjects as this lease and
who holds up Its authors to Condemnation.
Let him ttcat this lease fairly and submit
his inqutrtea to us."
"I accept your proposal with pleasure."
said Mr. Taylor, tlslng to Ills feet In an
Instant. "It ls a fair one."
Before the tilt between Mr. Tajlor and
Mr. Gaffney, former Senator John O. Sheats
suggested that an entirely new lease be
drawn up because of the serious criticism
directed against the present proposal. Ho
proposed that a board of n few men be ap
pointed, consisting of two business men, a
corporation attorney and competent en
gineers, designated to write a new lease.
Mayor Smith arose at this point.
"I had not Intended making any remarks
today," he said. "But I am prompted to
do so by the statement of Mr. Hheatz.
''The responsibility for drawing up a
lease rests with me. I want to say that
one ot the greatest difficulties that I have
had was to find a lawyer without corpora
tion Influence to advise mo.
"I propose to stand sponsor for this
lease. It Is a duty that belongs to me and
I wilt face it."
ANSWERS TAYLOR ONLY IN JART
Mr. Lewis, after presenting an elaborate
seventeen-page printed argument support
ing the proposed lease, answered In part
Mr. Taylor's charges. Taking the former
Director's assertion that fares must be
boosted to pay the company's fi per cent
dividend, cumulative, as Jiis cue, Doctor
Lewis pronounced this argument as "ab
solutely false." The remainder of Mr Tay
lor's charges and arguments, he said, were
so confusing that It was difficult to answer
them, although Mr. Taylor has made two
analyses of the proposed lease and uttered
specific charges that the lease would drain
money from the people of the city.
Mr Lewis suggested that Mr. Taylor
submit a series of specific questions at the
next meeting, questions that lie himself or
Director of Transit Twining would answer
verbally nnd later reply to In full writing.
He further offered, on behalf of the authors
of the lease, to have the wording amended
as to be perfectly clear to all.
LEWIS'S PERORATION
"Nine-tenths of the criticisms of the pro
posed lease are based on the assumption
that under Its terms the Public Service
Commission, Im fixing the rates of fare,
will have to fix the rate high enough to pay
a S per cent dividend, cumulative, to the
transit company. This Is absolutely false.
The Intent of those who drafted the pro
posed lease was:
First. To leave the determination ot
the rates of fare entirely to the Public
Service Commission, where It belongs,
without any requirement that they
Should fix rates sufficient to pay any par
ticular rate of dividend or any dividend
at all.
Second. That when any question ot
readjustment ot rates comes before the
commission the city will concede the
fairness of a 4 per cent dividend, but
be left free to oppose, If it then so de
sires, any rate of fare which will give
the company's stockholders a dividend of
more than 4 per cent.
"The question of vital Importance to the
citizens of Philadelphia Is whether a lease
producing these results should or should
not be adopted. I believe that the lease
Is correctly worded to carry out the intent
ot the authors, but I desire to assure the
former director, or any one else who has
been opposing the lease because he thinks
it guarantees a 6 per cent dividend or any
other rate of dividend to the company, that
If Investigation shows that the language
used should be changed to make the Intent
clear we will be the first to urge Councils
to make the necessary changes,
"In regard to the former Director's other
criticisms, they are so confused, so full of
repetition and so Interspersed with denun
ciatory adjectives that In the majority of
Instances It has been Impossible to ascer
tain the exact points to which reply should
be made. Generally where the point he Is
trying to make la at all clear the criticism
Is based on a misstatement of the results
of the provisions ot the proposed lease.
"Reckless and confused public statements
alleging that the lease provides things which
It does not provide will never get us any-
where.' It Is not fair to the people that
a discussion of a matter of this Importance
should be carried on ln 'this manner. In
order that we may clarify the points at
Issue I suggest that the former director
be asked to submit at the next meeting
a series of Inquiries,' each one ot which
will aBk a definite question does or does
not the proposed lease provide thus and
sp. Either Director Twining or I will
make a verbal reply and afterwards, In
order that the general public may be clearly
Informed, make a written reply. By this
process the former director will probably
discover that the authors of the lease had
no Intent to produce the results ln regard
to which he so violently complains.
"Should t appear that there Is reason
able doubt concerning the exact meaning of
the provisions, as previously stated, the
authors themselves will be the first to sub
mit amendments.
"On the other hand, If In regard to any
one or more of the Inquiries we reply that
what the former Director regards as an
obnoxious result was Intended,' we shall
have at least arrived at a clear-cut Issue,
which may be debated before this commit
tee and In the public press."
Former Director Taylor, who has led the
fight against the Smlth-Mltten lease, was
present. Mayor Smith also was present, as
were several Councllmen and sereral rep
resentatives ot the Philadelphia Rapid
Transit Company.
A' fairly large crowd had filtered into
Room 411, City Hall, when the meeting was
called to. order by Chairman Gaffney, ot
Councils' -Finance Committee.
OAFFNEY ASKS QUIZZING
'We propose to give everybody and every
organization an opportunity to express them,
selves on the provisions of tbe proposed
lease," he said. "We want every Phliadel
phlan thoroughly to dlsousa and examine its
provisions, and J want to say that this com
mittee will sit until the snow files If neces
sary to reach some right understanding.
We welcome suggestions. The committee
men have no cut-and-drled policy other than
to get a lease satisfactory to the people of
Philadelphia.
This lease proposition Is the greatest
that Is likely to come before the city -for
many years and It must be right. All ques
tions lll oe replied, to Uy'Direetor .Twining
T.IW
of these committees. I cannot emphasize
too much that we Invite help."
WEST PHILADELPHIA OPPOSES
Opposition to the Smith lease, on the
grounds advanced by Mr. Taylor, was ex
pressed by the first speaker, John N. Mc
Garvey, of the, Allied Business Men's Asso
ciation of West Philadelphia,
"The people of West Philadelphia are
opposed to the lease for several reasons,"
he said. . "First, West Philadelphia, with
Its more than 300,000 residents, ls not pro.
tected for Its Immediate or future needs.
because the P. R. T, ls a corporation oper
ating as a leasing company. Second, we
oppose the hoard of threo engineers. The
department Is the place to handle transit
questions. 1'nder the method of selecting
the board the P. It. T. would dominate
transit as It does today. Third, we should
so slow, Experts disagree. We ourselves
will be hound by the findings of Mr Taylor,"
Chairman Gaffney here interrupted.
"We ate not after general criticism," he
said. "We want particular objections. We
want to know what you are opposed to."
"Serious charges have been made and
these serious charges have not been an
swered by the Department of Transit," "re
plied Mr. McOarvey, "Until they are an
swered we have nothing to say other than
that our expert Is fully capable of defend
ing our Interests."
Dean Lewis arose
"I want to say that one of the state
ments made by the former speaker Is cor
rect," he said. "The P. It. T. Is an operating
and leasing company. If the question of
the Fifty-sixth street line came up. follow
ing the adoption of this lease, the board cre
ated under tho lease could force the com
pany to make extensions. I want to say
for the benefit of the outlying sections that
tho board would have the power to order
the construction of additions and exten
sions." URGES CITY TO TAKE OVER P. R. T.
C. Oscar Beasley, another speaker for
the West Philadelphia organization, .of
fered the blunt resolution that the city
lake over the transit company's lines under
the llechl bill. This, he said, would ravo
the city $4,000,000 a jcaf nnd permit five
cent fares and free transfers without a
deficit.
The resolution read In part as follows:
The Mayor is hereby authorized, em
powered nnd directed to notify the Phila
delphia Rapid Transit Company that the
city of Philadelphia Intends to proceed
to acquire the present street railway
system of the said Philadelphia Rapid
Transit Company and tire system ot its
underlying companies in accordance with
the rights conferred upon the city ot
Philadelphia by act of Assembly approved
the 19th day of July, 1917, empowering
the city of Philadelphia so to ct9, and
further that the Mayor be authorized
and Is hereby directed from consultation
with the Department of Transit to offer
a sum not greater than the valuation
of said railway systems as set forth
in the official order of the city to wit
$U.S31,4'.'5,06 and In case of the re
fusal of the city companies to accept
said amount the Mayor is hereby di
rected to proceed as provided for In said
act of Assembly to complete the require
ment of the system by giving the bonds
and taking the proceedings required In
said act for the purpose ot perfecting the
acquirement of said systems as above set
forth.
When he offered the resolution Mr. Beas
ley urged that Councils postpone action on
any lease for two or three years until the
Hecht amendment to the Constitution pro
viding money for the purchase ot lines
under condemnation should ho passed by
the next legislature and voted on by the
people.
Mr. Beasley said he did not favor even
taking up the Taylor lease. He claimed
there would be a deficit of $4,500,000 under
either the Taylor or Smith lease and that
that sum represented annual dividends on
present watered stock. He said that under
the Smith lease the Public Service Commis
sion had no power to force the building
of any extensions or to lower fares.
Mr. Lewis objected to that and declared
that under tho new lease, through the
proposed Boaid of Supervising Engineers',
it was provided that the Public Service
Commission shall regulate the fares, neither
lowering nor raising them.
In reply to questions by Select Council
man Trainer and Doctor Gleason, president
ot Common Council, Mr. Beasley said he
was not advocating municipal operation, but
that the city could lease the lines after
taking them over. He said the only finan
cial obligation the ctty would be under. If
It condemned the lines under the Hecht
bill, would be to file a bond with the State
for the amount of the purchase price of
$119,000,000 and that the actual money
for the purchase ot the lines would not
have to be found for many years.
Mr. Trainer asked Mr. Beasley If a rul
ing by the StateBunreme Court would not
make the amount of the borid a part of the
city's indebtedness at the time the bond
was given.
Mr. Beasley and Mr Lewis got Into nn
argument over the constitutionality ot this
phase of the subject. At Mr. Lewis's sug
gestion, further discussion of that point was
postponed until another hearing.
POINTS OF CONTRACT
Mr. Lewis opened his address with the
proposals of the lease summarized In the
six following points:
First. To secure a unified system ot
operation pC Philadelphia's transit facil
ities by leasing the city's lines to the
Rapid Transit Company.
Second. To place the city's Investment
In transit facilities on an Immediate
revenue-producing basis, thus relieving
the city and Its taxpayers of financial
burden, and releasing its borrowing ca
pacity 0 as to render possible (a) the
completion within a reasonable time of
the high-speed lines now authorized, and
(b) future transit development and other
equally necessary public Improvements.
Third, That for the present the fares
now In effect on the company's lines be
retained; that at the outset the fare on
the city's lines shall be five cents with
free transfers; and that after the ope'n
Ing of the Broad street subway and de
livery loop, and throughout the remaining
term ot the lease the Public Service Colli
sion be asked to establish from time to
time Just and reasonable fares.
Fourth. That while the city admits
that 4 per cent is a reasonable dividend
rate, it shall make no dividend guaran
tees. Fifth. That the city shall share equal
ly with the company tile supervision
over and regulation of equipment, rout
ing and service. on the company's system
as well as on the city's system.
Sixth. That the company shall build
extensions to Its surface system when or
dered by the Public Service Commission.
ADMINISTRATION DEFENSE
The administration's action In rejecting
the Taylor lease, worked out by tho former
Director and representatives of the Transit
Company, was explained away by Mr.
Lewis, who cites five conditions which he
said would have resulted from the adoption
of this lease. These, In brief, are:
First, That the company would have
Been teleased from Its obligation to pay
the city annually upward of $800,000,
or during the term of the lease of be.
tween $43,000,000 and $45,000,000, which
sum would have to be made up out of
taxation.
Second, that the company was to receive
a 5 per cent dividend on the capital stock
out of the gross revenue of the united
sstem as a prior charge to the city's
return uporr the cost of the high-speed
system, this Involving a loss to the city
during the term of the lease of between
$47,000,000 and $60,000,000, to be made up
out of the tax rate.
Third, that If the gross revenues wete
Insufficient to pay the 5 per cent tho
company would have the arhltiary right
to abolish the free tranfers.
Fourth. That no rtrnvlslnn was matte
to insure efficient operation by tho com
pany of the unified sjstem.
Fifth, That the entlto cost of the
city's high-speed Hstcni would have been
charged against the city's borrowing ca.
paclty for many jears, thus preventing
further transit development and other
needed Improvements.
Red Sox Win Third
Straight Over Macks
Continued from Tate One
Mejer ton lato to prevent Hooper from
scoring. Lewis singled to center, sending
Hoblltzel to third and Lewis taking Becond
on the throw. Walker popped to Palmer.
Gardner fouled to Talmer, One run, two
hits, no errors.
Jamleson singled to center Mi'Nally
threw out Grover. Bodle walked. Foster
threw out Strunk. Gardner threw out Mc
Innls. No runs, one hit, no errors.
SECOND INNING
Witt made a fine stop and throw when
he got Scott at first Agncw lined to Bodle.
Grover threw out Foster. No runs, no hits,
no errors.
Witt filed to Hooper. Palmer walked.
Meyer lined to Gardner Johnson filed to
Hooper. No runs, no hits, no errors.
THIRD INNING
Hooper dropped a single In right. Mc
Nally (-ncrlflced. Johnson to McIriiiK
Hooper died stealing, Meyer to Palmer.
Hoblltzell singled to right Hoblitzell stole
second. Lewis popped to Witt No inns,
two lilts, no errors.
Jamleson struck out. Grover filed to
Walker. Bodied filed to Hooper. No runs,
no hits, no errors.
FOURTH INNING
Walker fanned Witt th'rew out Gardner.
Scott grounded to Mclnnls, urrassisted. No
runs, no hits, no errors
Strunk filed to Lewis. Mdnnls doubled
to right center. Scott threw out Witt.
Palmer filed to Walker. No runs, one hit,
no errors.
FIFTH INNING
Johnson threw out .gnew. Foster sliiKled
to right. Hooper filed to lioille. McNtlly
filed to Johnson. Nu runs, one lilt, no er
rors. Mejer filed to Walker. Johnson singled
to left. Jamleson popped to Hoblltzel.
Grover popred to McNall. Nn iun, one
hit, no errors.
SIXTH INNING
Hoblltzel singled to left. Mclnnls fumbled
Lewis's hunt. Hobbv taking second. John
win threw wild on Walker's bunt, Hoblltzel
scoring, but Lewis was caught at the nlate
Grover to Meyer, Walker taking second on'
the p!a. Witt threw out Gardner. Scott
singled to center. Walker scoring. Agnew
fouled to Mejer. Two runs, two hits, one
error.
Scott threw out Bodle. Foster threw out
Strunk. Mclnnls fouled to Gardner. No
runs, no hits, no errors.
SEVENTH INNING
Foster singled to right. Hooper sacrificed,
Johnson to Mclnnls. Witt threw out Mc
Nally. Grover threw out Hoblltzel. No runs,
one hit, no errors.
Witt lined to Walker. Palmer filed to
Walker. McNally threw out Meyer. No
runs, no hits, no en oik.
EIGHTH INNING
Lewis filed to Palmer. Walker tripled
to right Center, Gardner fouled to Palmer.
Scott singled to left, tooting Walker An.
,new singled to left. Scott stopping at sond.
roster uouuieo to left, scoring Scott. Hooper
walked, filling the bases. McNally forced
Hooper, Witt to Grover. Two runs, four
hits, no errors.
Griffin batted In place of Johnson. Fos
ter made a one-hand leaping catch of Grlf
flth's liner. Scott threw out Jamleson.
Grover filed to Lewis. No runs, no hits, no
errors.
NINTH INNING
Andeison now pitching for Athletics.
Witt threw out Hoblltzell. Lewis fanned
Walker filed to Bodle, No runs, no hits,
no errors.
Bodle hit the left-field bleacher wall for
two bases. Strunk filed to Lewis. Gardner
threw out Mclnnls, Bodle being held at
second. A wild pitch sent Bodle to third.
Witt walked Palmer fanned. No runs,
one hit, no errors.
Delaware State Fair Ends Today
WILMINGTON. Sept. 7. The Delaware
State fair will pass Into history tonight
after one of the most successful years since
It was established, Despite rain the at
tendance yesterday, "Big Thursday," It was
announced today, was close tn 30,000. It
was a decidedly cosmopolitan ciowd, made
up of politicians and society folk from all
parts ot this State and from Pennsylvania
THE CHEERFUL CfTO
With little busy sirvjityf
bo6s
The .summer just
bourids.
They rmUe. . Wck
jjound for'the dwvs
OF finely-woven
sounds.
T L 1
I 5ffi 1 Ea
-MiiiWilniifiiii
y xj .'.'! r'-v
-s -- ji. .
Skin troubles
quickly yield to
Ife&inol
No remedy can honestly promise
to heal evtry case of eczema or sim
ilar skin ailment. But Resinol Oint
ment, aided by Resinol Soap, gives
such iitsfant relief from the itching
and burning, and so generally suc
ceeds in clearing the trouble away,
that it is the standard skin-treat,
ment of thousands of physicians.
v . juainol ointment ana Resinol Boap are
la by all UMlets, ythr not ta.mT
V,sfTP
TAYLOR WARNS CITY OP NEW"
MENACES IN SMITH-MITTEN PACTr
Prior to the first public hearing on the
Smlth-Mltten transit lease grab this aft
ernoon, ex. Director of Transit A. Merritt
Taylor today Issued a waning to the peo
ple that ratification of the lease would be
ruinous to Philadelphia, He points out
what lie charges are four additional de
fects brought out In his latest analysis.
"Further careful analysis of the Smith
lease," reads Mr, Tn lor's statement, "leads
mo to deliberately make these additional
charges with relation thereto:
IThat thereunder, tho full Interest
chargo on all of the city's bonds
Issued for tianslt development remains
a continuing charge ngalnst the unified
system after those bonds havo been paid
off In full, a provided In Article XXII,
Item No. . and that the full amount
theieof must continue to be paid out nf
carfares annually to a. sinking fund com
mission, to bo used as provided for In
Aillcle XXV, paragraph 2. for the pur
chase of the propertv, leaseholds and fi.in
chises of the P. R. T Company
2 That thereunder, the supposed
equal division between tho city and
the company of any net profit" or resldtl
of gross earnings, specified In Item No,
11, in fact prevents the city from collect
ing any profit whatever from tho opera
tion nf Its high-speed lines until after
the ily has acquired the property and
leaseholds of the P. It. T. Company; for,
what Is hupposed to he the clty'a one
half of such profits does not go dliectly
to the city, but goes to tho sinking fund
conimlsslni hercinbcfoie referred to, for
the sole purpose of pui chasing the prop
erty of the J'. 1t. T, Company. This fact
Is clearly stated in Jterri No. 11.
3Tljnt thereunder, there bhotlld be
no accumulation ot funds In Items
Nos. 9 and 11, above referred to, until
after Item Nn 8 which Is company's
cumulative dividend on Its stock has
been paid In full ; for, the payments to
Items which are numbered 1 to 11 both
Inclusive, as per terms of Article XXII,
Section S, ".shall bo cumulative In the
t
order named. i. t ... i .... ....
the gross revenue shall not be sufficient V .
nn...ii . i'.xciio vnci any Dniances -tX-v,n
unpaid for former years), the deficits ln M
" m,m Payments shall be made good i ,'hjist
from gross revenue of succee.iinr v.r. $ ,L"
inIdea.!;.,Ufem bVore any Potent JsfUS
made therefrom for any items subse- iJ?
qucritlv snei.p,l i ... l .. . .t.
hereof;-' ' ....im o. ,
ni h! ..W.OU U become an obligation ahead ','J
.' he clty" Interest In Its own system, tha ,'J i
... i ,r co"nues the company would
main Its current assets and tho unified
sj stem thus would be shorn of its surpliM
;.. Vrrkln.k- caP,a'. now amounting U)
more than $4,300,000. ,
Hie fourth charge Is as follows: Kt 3
A "'at thereunder. h eii .,,M ' f.r.
T 1...II.I -. . J k
- - "..hi. mm surrender to the P. R. T. s.
en!,1,,,'!," ?nd, U". entlr' 'lh-speed ays. ',
f , ?i.a,.bnsla of crcdlt u"n wnlch the, . , i
P. It. T. rnrnnom, .......I., .,-- .,.. t
, , : , j uu,u mine me money
required for certain equipment to bo fur
nished to the city's high-speed lines, and
n r S. exte"ln n"d equipment of the
1 Jt T Company's existing surface sys
tem throughout the city; for, under Oie
terms of Artsvles XXX and XLII, the city,
to tecapture its own high-speed lines. Is
required, at the same time, to buy the
property and franchises of the P. rt. T.
Company, and thereby assume all the in
debtedness outstanding against tbe same.
Irr nn appeal to the street-car passenger
of the city the statement leads: "Vbu must
either line, up nnd defeat the Smith lease
ot jolt will be forced to continue to pay
the elght-ceit ticket charge and whatever
Increase In'f.irc may be found necessary to
not only pay the P It. T.'a guaranteeii
dlvideml and the Interest on the city's
transit debt, but to pay the stockholders of
the P, It. T. Company $50 a share for their
stock, which Is now selling at $29 a share,
or $30,000,000 on the amount now outstand.
Inc. and to repay to the city the total cost
of Its high-speed lines, estimated by Direc
tor Twining to be $90,000,000."
3
tfS
&i
LA FOLLETTE'S TAX
PLAN FAILS IN SENATE
Amendment Increasing Income
Rates Rejected by Vote of
19 to 55
WASHINGTON, Sept. 7.
Without a record vote the Senate
late today adopted the Finance Com
mittee's income tax section of the war
revenue bill. The committee plan will
raise $840,000,000 revenue from in
comes additional to the sums raised
under existing income tax laws. Sen
ator Trammell's amendment to increase
exemptions from $1000 for single men
to $2000 and from $2000 for married
men to $3000 was defeated.
WASHINGTON. Sept. 7.
The Senate today again defeated those
seeking to place a heavy tax on wealth by
rejecting 10 to B5 Senator La Follette's
amendment Increasing Income tax rates so
as to raise $643,000,000 more than the Fi
nance Committee's plan.
La Vollette's amendment provided for a
fiO per cent surta'x upon Incomes of $1,000.
000 or more, but Its heaviest Increases were
put upon Incomes between $50,000 nnd
$300,000,
By a vote of 26 to SI the Senate then
rejected the llollis amendment adding $80..
000,000 to tho Income tax levy proposed by
the Finance Committee. The Hullis amend
ment would have Incieamd rates on Incomes
between $20,000 and $250,000.
Stratford Fire Causes $15,000 Loss
STItATFOMD, N. J., Sept. 7. Fire of
unknown origin was discovered on the large
dairy farm of Edward Hunt, destroy
ing four barns and much valuable ma
chinery, causing a loss of $1B,0U0. Twelve
horses, sixty cows and fifty hogs were
rescued. For a time the dwelling house
was In danger and fire companies from
(iementon. Magnolia and Haddon Heights
assisted Irr preventing n further spread of
the names. They were hampered by a
lack of water.
RIB0T MINISTRY QUITS;
P0INCARE ASKS DELAY
Resignations Held Up Pending
Conference With Heads of '
Senate and Deputies
NEW TOItK, Sept, 7.
A cablegram from Paris today says that
the resignation of the Itlbot Ministry was)
decided upon unanimously after a Cabinet
meeting this morning.
President Polncaro asked the Premier
and his colleagues to withhold their resig
nations until the presidents of the Senate
nnd Chamber of Deputies have returned to
Paris to (llscus the situation.
m
l
Huntington Wilson Sued for Divorce
RKNO. Nev. Sept. 7 A divorce suit
against Huntington Wilson, former Assist
ant Secretary of State under Roosevelt, ls
on file here today. Mrs, Lucille Wilson's
complaint bays she has lived "a miserable
existence" with her husband and charac
terizes him as "cruel arrd domineering."
Thompson Asks $1,350,000 for Libef
CHICAGO, Sept. 7, Mayor Thompson
this afternoon brought ln tho Circuit Court '
five suits for libel against Chicago news.'
papers and individuals, totaling $1,350,000.
The suits were as follows: Chicago Tri
bune, $500,000; Chicago Daily News and
Victor V. Lawson, publisher. $250,000;
Jacob M. Dickinson, former Secretary of
War, $200,000: If. H. Merrick, president
of the local chapter of the National Secur
It League, $200,000 ; Arnold Joerns, secret
tary of the same organization. $200,000.
Whitman Loses Fight for Perkins
ALBANY X. Y Sept, 7. George VT,
Perkins's nomination for chairman rof thv
New York State Food Commission was de
feated this afternoon by a vote of 25 to 'IS,
1
Montana Mine Employes Won't Strike
BUTTK, Mont., Sept. 7. A strike vote
of the machinists and blacksmiths of mines;
failed last night, lacking sufficient majority.
v !
41
Infants-Mothers
Thousands testify
Horlick's
The Original
Malted Milk !
Upbuilds and sustains the body
No Cooking or Milk required
Used for V3 of a Century
Substitutes Cost YOU Same Price
J3
Ti I r s'-7:45- '- r. ic
24-28
r.j Seats on Sale
r BY MAIL
marked on and After
Next Monday
FORREST SD&
zzZra
itj im
worn
M
S5
'SEATS NOW
Klaw and hrlanger's
New Musical
Comedy
.Muilo by
Kulman
Book by Roltun
ilnd YVodehouae,
Cast & Chorus of 100
600 to $1.50 t Populsr Wednesday Matinee,
BROAD 08p...nonot Mon. Evg.
SEATS NOW
Tha Stmstlonally nnlllant Maugham Comedy
ran
BEraw
Amazing nuaion Theatre Can Intact! In.
rlualng Chryttal lUrne. nose Cothlan. Frits
Williams, and Othara,
6O0 to $1.80 at Popular Wednesday Matlnaa.
mm
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TAYLOR HOLMES
IN FIH8T SHOWING OK
"Eflieiency Edgar's Courtship""
NHXT WEEK .MARY P1CKFOKD In '
"ItUDUCCA Of SUNNYUllOOIt TAnM"
T?Trr,T?"rTrP MAflKBT Below tTTH
IVrHjIljiN 1 DAILY 10c i UVOS. IS. ,
, 11 A. M. to 11:15 P. U.
J t'UANK HLUXDON IN O. HENHY
DUA11A, "rHB DEFEAT OP TUB C1TT"
rrr,rr,f'DT a maiikbt ao dth
VlUlUXvlii o A. M. to 11:15 P. U.
NORMA TALMADGE
In "TUB MOTH"
ALL NEXT WEEK - r
A Presented' Recently 'at Forreit Theatre'JSU'i
EVELYN NESBIT s '
ANfoEn RTJSSEL THAW ..
In 'IlEbEMPTION"--No (Advance In Price
GLOBE Theatre J8fflKAv&1
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loo. 15c. 55e. 8 Jo f , JW
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