ftm ' Asdw JSt Lawyers ttASE GUARANTEES from ruts On Ije outraged, and at. i-onllnultig nnd ruble damage will ho lmllcted upon C'As a result of Mx weeks of constant ir4 4v-" WmL . IEL2. ' most earnest negotiation on my pari Wrfy in the Interest of my fellow citizens t-We management of the 1. It. T Company, M December 20, 191C, tendered a definite ;'M fair lease to the city, wliercundrr It Slred In definite terms clearly expressed to' equip and operate the high-speed lines, y lease Is known as tbo Taylor lease. . ft' Xd, and still has, my unqualified np rVal, ,.' "n V. T Stotesbury, on behalf of the "f. It, T Company, personally publicly ten dered, the Taylor lease to the city nnd pro nounced It to be a Just arrangement be tween the city and company. , "The terms of the Taylor lease afforded the city and street railway passage nde Uate protection, and assured S per cent dividends on 1' It. T Company's stock, nd a small bonus as a premium on efllcient Management "The Taylor lenbP wai Opposed b Min er Smith, and nfter a lommltteo of Cltv Councils had reported It negatively. Mayor Smith and President Mitten, of the V rt T Company, framed up the Smith lease. whMi would glvo the P Tt. T Company lrtn artijr all of thoso ndantagcs ulitcli It origi nally endeavored to get me to ngree tu. nnd which I have branded 3s unjust. "William Draper I-cwta, Kq . has been retained as counsel In the premises by the Mayor; he has requested me to submit the Charges which I have made In the form of questions and has agreed to answer such questions they are printed In capita! tpe On the pages of a pamphlet which I iae liere. The references beneath thp questions apply to the specified articles and sections 'In tho Smith lease which Is printed In full In the pamphlet as "appendix A.' except tn the Instances where .'uch icfcrences are made to certain articles nnd sections In the Taylor lease 'which la printed In full ns "appendix B." 'These questions and ratal em-ra liaxo been compiled for m fellow citizens In concise form to enable tlteni to readily de termine by personal examination of tlilt Kmlth lenso that thee questions lequire affirmative answers, the appalling nature of the proposition thus will be clearly e.po?cd to them. "I 'earnestly request ni fellow citizens to defend their city nnd tlielr fellow cltl retis In this vitally Important crisis." MAYOn AllKIVKS ; C.U'SKS MUZZ Council's finance chamber was i-rowdcd with representatives of arloif business men's organizations nnd politicians and others long beforo the meeting got under way Among the lato arrivals was .Mayor Smith. His appearance nused a geneial buzz. He ahook hands with Harry Trainer, i Penrose member of Councils, and sat with him In n far corner The meeting was called to order by Chairman (Jaffney, of the finance committee The air was electric It was the universal , feetlng that something big was on. Jlr Taylor sat quietly, and no ono would have supposed, from his calm face, that -. .thin a short time he was to be responslbx foi the biggest transit surprise In all the long campaign to get for Philadelphia, on terms fair to the cltj tho rapid transit system o needed for Its growth and expansion. KXCHA.VGU TICKHT8 t'OXTINCK Mr. Taylor presented a rcrles of questions which were answered lij Mr Lewl.s Mr. Taylor Hiked if the Smith leaso authorized and empowered tho Itapld Ttanslt Company to Issue tho three-cent exchange tickets, us at present, until after the subway deller loop and tho first Heel Ion of the Hroail street subway had been placed in opera tion, and until the abolition of the ex changes ticket had been determined upon by the Public Service Commission. In reply Mr. Lewis (.aid: "Tho eight-cent exchange tickets will continue until nfter the opening of the Hroal st.-eet suhua. The matter will be taken beforo the Public Service Commission and the tickets con tinued until the commission given an older TWINING STILL CLINGS TO DEMAND FOR SUPERVISORY TRANSIT BOARD Transit Director Twining presented to tho committee a lengthy analysis of tho Admin lBtritlon,'s proposal, supplementing the pre vious statements madeln defense of the doc ument by William Draper Lewis, Mayor Smith's legal transit advisor," and pointing out why. In the opinion of the 'lianslt De partment, the latest proposal Is more favor ble to the city titan the Taylor lease. The constructive suggestions iccuni tnended by the Jlrm of Kord. Uacon & Davis aft desirable changes and improvements In the lease were ignored by the Director in his analysis, with the exception of the sug gestion of the New York engineers at to the formation of the proposed Uoard of Control. The Director took exception to their recommendations In this one case and ngaln defended the provision of the lease na It now stands In providing for such a board. The analysis of the lease made by the Director demonstrates clearly that the pres ent Smith Administration has no Intention of operating the system upon a flat five cent fare basis. The tabIe-9 Included in the Director's report to Councils indicate that the fare, under the Smith-Mitten program, would be six cents with itrip tickets. A re duction during the later years of operation. however, is anticipated, and from the tables tt s Indicated that, with the company re ceiving a dividend of 0 per cent, the fare would go below five cents about 1950. The basic Ideas followed by the Depait ment tn formulating the Mmlth-Mltteu lease, the Director summarized as follows: First. That the community served by a public utility company should be em powered to specify and obtain such sen -tee as It desire. Second. That the public utility com pany supplying such service should be allowed a reasonable, hut not g unrantced, return on the capital invested in the pub lic utility. WILLIAM DRAPER LEWIS'S OPINION AS READ AT TRANSIT MEETING "William Draper Lewis read an opinion he had written relatlnr to the suggestions of Kord, Bacon & Davi as contained In their letter ot September 4 concerning, the pro posed Smith contract The opinion read: f. peg lo suomii ine iuiiowhik uihihuh uu be suggestion of Messrs. Ford, Dacon & Javla on the proposed transit contract now "'efore you for consideration. -JKJOGESTION A This suggestion Is that at the uoiioiuslou nt ths second paragraph of Article XXIII a statement somewhat as follows should be inserted' Nothing herein shall prevent the Com . dOatinn reducing- tho fares from time to l ;Jm.it or the City making application to se- k reduction. fjnder the proposed contract the CoinmU 4twl ha unquestionably tho right to reduce "fMWv. There Is, of course, no objection to tl4 adoption ot the suggestion. If It Is dotted, however, the language should be mmM general so that It is expressly stated V HOtr.ing in any section oi mu contract r;, spAJf prevent im v uimivm',u jruui icuuviui MK)4TION It YVp suggestion l that there should be (naxtitl a clause to the effect that. At an time while the question of fare -evtetyitjs before the Public Strvlce ('on' aiceton, the city may tj ordinance waive u iH-ttlon (properly llmted a to amount .;d -period) cf the Interest and Sinking Fund chj-raee payable to It under Item ' liu-fee payable to (t under Item 7, I rent to the city and i.tt teatr awl intent on the part, I When that time does 'Mir ihfhrferfclhe.Jia.tlirn prevent Ivi aed su- Find Sniith-Mitten DIVIDENDS, SAY LEADERS OF BAR to the Loutrnr So 1 Htmuer 'e to your question." Mr. Taylor then asked 'If tho picscut tluec-cent exchange ticket chaige uti.itl tutea nn Illegal dlscr'niltmllon against per son nnd loealltle. whether tho city would not ho Incompetent to lawfully itgreo with the company that this Illegal charge nliall bo coniirueil or perpatuuted'" "L'pon youi assumption," leplicd Mr Lewis, "t answer jes Tho exchange tickets tire alleged to be discriminatory A num ber of lawyers, I among them, gavo an opin ion to you. when you were director that they could be abolished. Wo wero hopeful that you would ' Institute proceedings for their abolition. Kor somo reason you did not do so. When no opened negotiations with the transit company we had these exchange tickets and wo nro forced l cither accept them or say to the compniiv Wo arc going to test their legality ' I thmii even Mr Taylor will agree that a lawsuit Is a poor way to begin making a bargain As tho lease Imw to go to the Public Nrrxlro Commission for npprowtl. any ono can a:l. action then on the exchange ticket" Know Ing the facts, we hme treated them as wo have." At this point .Mr. UulXncy asked. Is u not true, Mr I,i-nls, that Mr. Vlurk has Instituted suit fo rabolltloti of tlir tii-koi" "Yob." replied Mr. Lewis Mr. UufTiipy added. "It tt inmiiswii rules them dlMTlinlnulorj und illegal nnd t orders them abolished, tliev simply diop out of tho lease without fuither iIIscuhsIhh Under Mr. Tuylor'H lenso the cltv would hdo had to pay Jl-'.OOil.onO for HumcthiiiR whkli might hap been dcrlaied illrgal Mr. Taylor tlicn asked. "Huh the i-m Inlned Mr. Kluek In this Mill'." Mi. Lewis replied that it had not. because that inaitei would havo to come up for discussion wlieti tlie lease came up for consideration. The next question of Mr. Tnjloi wn "Would not nu ngrerincnt on the part nt dm eitv nntlioilzlmt the conipany ( i 'ii- I tlnuo tho thice-cent oxchnngn til,fi charge tonstllute a betrayal of the people of Philadelphia?' "I don't just know how to answer that leplled Mr Lewis, lie pau-ed to nad the iiuestlon of Mr. Taylor Then he added "If von betray mjiup one ou lead him Into a position which he was not ncting and against his knowledge. iViUlnly the lease in not being rushed thmngli. No one Is being forced against his will' Mr Taylor then added: "Would tho tinltli lease secure u the P U. T Company, In addition to one-half tlie piollts of tho unitled system, tho right to pay, out of gross revenuo of tho untiled system, under Article 22, Item S. dlxldeiidt, up to but not exceeding 0 per cent per annum, cumulate a from and nfter the dnto upon which the Smith lean- bhall becotno effective, on tho f30.d00.000 of P. It. r. stock now outstanding?" In answer to this. Mr. Lewis said' "If tho gross icvenue 1 there. I answer yes. Your reserve Is divided Into items, an dl want to make it as public us possible that Items fl. 10 and 11 nro In there out or caution. The peoplo will bo fooled K they think there Is any cham-o for these item". I don't believe there is one chanee In a mil lion th.it any money will be divided. Ilftv flfty, under the eleventh Item. It Is hardly conceivable that tlicto Is ovrr going to bo anv surplus after tho opening of tho Broad street subway. My chief concern Is that tho people w 111 not bo fooled Into going into this -contract with the Iwca that they will over get a dollar nut of the fllty-flfty clause. The Public Service 'ommisnlon will regulate that." Mr Tnylois next injcMioii brought a brief reply The question 'and answer follows. Mr Taylor. 'Would the Smith Imsc leiiulte tho gross icvenue of Hip unified system to produce the P It. T Company'H cumulative dividend requirements as epecMcd In Article -i--rll. Hem S; and, would It thus guarantee such dividends in a veiy practical manners Jlr. .Lewis. "No, of course not. We are back lir the sumo old Idea as to whether or not tlia'faie clause guarantees dividends tn the J'. It. T None of vi wanted tn do that." Third. That the cost of the service should be the determining factor In the price to be charged for tho service. Fourth. That tho price to bo charged for tho f-crvire should bp determined by tlie Public Service. Commission - Kifth. That all the transit facilities ot n city should be ho unltleo and co-ordinated ns to provido economical operation of tho facilities and the beM possible rervieo to tho public Sixth. That in the operation of a uni fied system the city must not assume the business ilsks belonging to tho manage ment of the business, and. therefore, must not Interfere with the management, ciccpt for tho purpose of regulating servico In the public inlet est. Seventh. The efliclent operation and management of a public utility Is bet accomplished by making It possible that the operator shall have a substantial Interest In the earnings of tho business. A fixed, or guaranteed, return Is fatal to good management and therefore fatal to good service. ICIghth. That ail new capital Invested in a public utility should bo amortized and retired within a reasonable time out of the net earnings of the utility by (.Inking funds established for that pur pose This applies equally to the capital Invested by the city und the company. Ninth. That good service and publicity In regald to the activities of a public utility conipany are the best nieanu o seeming the good will of the public served. Tenth. That the i Uy 's lax rate should ifot be lnci eased hci-dune of the clty'N participation in the program of tianxii development, and that the city's borrow ing capacity should be. only temporarily utilized In the program and released as upldly ai possible. Public Service Commission to be taken Into consideration In fixing rates of fare TlilB suggeetton Is an admirable, one . Under tho Taylor-Company's leaso It wbb absolutely certain that for many years tho city would not receive it dollar from Its Investnient of probably over JtOO.000.000 In transit facilities. Ford, Uacon &. Davis es timated that an Increase In the tax rate of twenty-seven cents to carry tho Interest and sinking fund charges on tho city'a bonds Issued to construct the transit facilities would have been Inevitable. Under thli leaso the city will receive annually In rental Its charges on such transit bonds If the company, being unable to earn a I per cent dividend on a five-cent fare and universal free transfers on account of the large rental which It must pay to the city Is about to appeal to the Public Service Commission to raise fares, tho city has It In Its power to prevent any possibility of a raise of fare by relinquishing for the time being a portion of the rent payable to It. To give the city this right it Is not necessary to Insert the clause suggested by Ford. Bacon & Davis, but the suggestion to Insert suoh a clause Is a good one und should be adopted, because its adoption would set at rest once and for all the erroneous uiscr tlon that the proposed lease necessarily means a fare greater than five cents as a basic rate with universal free transfers It does nothing of the sort It is true thit a time will come when the company will not be able to pay. on such lates of fare, the rent to the city and a 4 per cent dividend. oome, whether the city py PDsfdbHUyvnf In ' UVJSNJLaJG LBDUlSil-PHlIiAJU ULA. FMDaV, SEinKAIBlSK til Transit Lease Unjust; Sustain Contentions of Former EMINENT COUNSEL ip, T r V 4fc' - nS. ' ' 1 HiBaBPv ' i :!( - Thomas Uueburn While (full fiuure at left). Charles L. Mckeehan (upper right) ami William A. Glasgow, Jr., three of tho most con spicuous members of the Philadelphia bar, today in an opinion read before Councils' Job t Committee on Finance nnd Street Railways at the public hearing declare the proposed Smith-Mitten Transit lease to be unjust and unfair to the city. crease of fares by reducing tho amount of tho rent will bo a matter to ho decided by tho responsible public olllclals then In otllce. The present Administration should not pro pose any lenso which, like the Taylor-Company's lease, would have bound future Ad ministrations to make up largo deficits In tho operation of transit fnclIJtleH by taxa tion Wo should leave to t'he futuro tho light to regulato Its own affairs. The com pany should, therefoie, as the prrt-cnt lease proposes, be obligated to pay a rental for the. city's transit facilities HUfllhicnt to cover the city's Interest and sinking fund ilmrgoK If nl any time, to prevent an In crease of fores', to produce n reduction of fares, or for any other reason, those who come nfter us wish to relievo tho comp.iny, in whole or In part, from Its obligation lo pay tent, they should have n right to do so. They will havo this right it the present propo.ii is adopted, nnd Ford, Tincon ,vr Mavis' suggestion merelv emphasises this Lot -t titiKvriiiN t Abolition of exchange tiiKcts Messrs. Ford. Ilncon & linvls ,uc coirect in tho statement that tho vatlous alterna tives to the tin re-cent exchange tickets w.hlcli havo been proposed are. , First. For the company to give up ex change tickets without remuneration. Second. For the company to glvo up ex change tickets after reimbursement out of tlie City Tie.iMiry ns provided In effect by the I91fi proposal Third. To continue the live of c-schange lickets ns at present until the commence ment of operation of the 15 road Stieet Subway, but limiting tho company's divi dend during sucli period and giving tho city a shnio In the revenue from such exchange tickets' during this period as provided In the present proposal. Fourth. Immediate abolition of ex change tickets and compensation to tho company by some concession In the con tract which would not Involve a draft on the Cltv Treasuty I nm not certain but apparently Jlessis Ford, Uacon & Dav is are Inclined to the last alternative, for they say In our opinion a small charge for trans fers between high-speed and surface lines. or for nil transfers, would bo preferable to tbo three-cent exchange tickets which nro used only in certain localities and are thus discriminatory The suggestion is worth v of careful ion slderation. But 1 am not at present pre pared to advise It It apparently- does not provido for the accumulation of a surplus prior to tlve opening of the Broad Street Subway, and such an accumulated surplus Is necessary to insure the payment of tho city's rental during the years Immediately succeeding the opening of that line, and this rental must be paid In order that the borrowing capacity of the city will Increase at a rate sufficiently fast to enable the rest of the city's construction to proceed with reasonable tapldlly M'OOIISTION I This suggestion relates to the composition of tho Hoard of Supervising Kngineers. It Is that tho "Director represent the city and that tho company appoint and pay for Its rcpiesentutlve, who, together with the city's repiesentdtlve. should be empowered to pass ,upon problems subject to this Joint "ontrol. In case It la found aavtsatilo these two par ties should be empowered to add to the board a third member appointed by the Pub lico Service Commission, for such term as they deem advisable, or directed to submit any matter in dispute to the Public Service Commission. ' An nt present advised. I do not regard these suggestions as wise. 1 am unable to see ho wa board of two members, one repre senting the city and one the company, can have the power of initiative and quick de HBSflLUTELYPERFECT Carat $ Aft aomaire 15mo.c Diamond lngS for nodi a nmll lnteit ment, these diamond make an uniMiiallr tine ihowlnc. Tber are absolutely perfect, tery brilliant and flerr and In ererr W are very d Irable. One of the moat remarkable thlntu about thete dlsiuondii ! Hie prlre. Jfc Carat glOJS V Carat ts.00 Carat 43.00 Vt Carat 11.00 4 Carat 1J3.13 t Carat 144.1 1 Carat 193.00 1V4 Carat 8.oo for we are ronrrr uio honor of hating In stock the bent of diamonds anil malntalnlnc ioneit prices. The ieon for tnlo Is not far to ,k, for we Import direct from abroad, latlnr raiitldrable eipenee and nt tho same time -curlnc better qualltr, Mall orders filled. 'St:f5 .crxvniuin nrxiasu wn.. - sfe -"-rnwusuflwjjr- v. DlAMOMOS RAP P. R. T, LEASE rision which tills board should have prop erly to perform Its important functions. On nil Important questions tho member repre senting the city and tho member represent ing the conipany would not bo unlikely to differ. Ah a result, nn arbitrator would have to bo appointed nnd tho whole ques tion gono over again beforo tho arbitrator. Again, the Important features of the board are thoso which require Initiative, namelv, the powewof regulating servico and tho power to present to the Public Servlco Commission tho necessity for extensions to tho surface lines nnd changes In fares Two menibeis of :i board of tlnee can urt promptly even if the third member dis ugrcos. On the other' hand, a bonid com posed of two persons, likely to differ, would havo little or no effective power of Initia tive. Whether the cltv's representative should as Mesrs. Fold, Uacon & P.ivis suggest, be ulvvavn the Mirectoi- of Transit, is n matter on which I believe we should ho guided by Informed engineering authority. It Is Mr. Tw-lnlng's opinion that during the constiuc tlnn of the city's transit facilities tho work of tlie Director In connection with such con struction will be so great as to prevent his devoting the necessary time to the board I have a feeling that the company will see to It that the company's representative on the hoard has plenty of time to attend to his duties, and I do not think that wo should run tho risk that tho city's reprcsentntlvo will be too crowded with other work to at tend to his duties as a board member. In this connection it should be pointed out that if, after the period of construction is over, It is found tliat tho Director of Transit has time to attend to tho duties of tho board, there IB nothing In tho terms of the proposed contract which prevents his being appointed as ,a member of the board, provided of course he Is, as he should always be, an expert engineer. For tho reasons stated I am inclined to believe that the provisions In tho proposed contract for tho constitution of the board and the selection of the board members i should not be changed as suggested ! I Orr Kr.,-, crrWn rllMtD Elfll .'lllW!il ui,.wiiu livirn wiltlri H fcTf 3-vTvrfc?WA vr4l Ml' fltuii1lkl1l'N1 mm Women's Smart Novelty Boots Extra, high cut; in pearl gray, ivory, champagne and African brown km; also tan calf, gun metal, pa tent and glaz ed kid; Melt ed and 8 t i t. rhrrl soles; all sizes and A to E in the assortment. il?fer9$1.98to5.95 College Girls' English Walking Shoes SPECIAL Coco - Tan andt Gun Metal; new?! military heels; all sizes and C to E wide. tm Prs. Women's High Cut Military Spats All the wanted v -x shades and in VJ9kC Willi F Jp Children's School Shoes $M aa Gun Metal and Pa- U tents, right ahape I U( last; sizes 5 to 8. 8', to 111.5" Hi, to2'1.79 Iysf School Shoes Satin Calf Bluch- $ "g f en; bIzm t 13J4 T J v V-Pia- o, MH XMiiHrf A.."", TTOTfswrwSSSwr m 1 J) 1 I 'if 1 J I "V tv 1 ft oc A2 RUSSIA GRIPPED BY TERROR REIGN Lust for Blood and Disorder Cunningly Fostered by German Spies INTRIGUE IS EVERYWHERE I'ETROGRAD, Sept. 21. Genernl Alexlcff, commnnder-ln-chlef of the army, was reported to have re signed today owing to differences with Premier Kerensky. Tho whole supreme command of the Russian army Is being replaced with "men whom tho soldiers can trust," Minister or War Vcrkhovsky announced today. Presumably Premier Kerensky has npproved of this decision. He is now at prand army headquarters. By WILL-IAMa SHEPHERD (fOMrlaht. 1017, hu the Vnlted PreV STOCKHOLM, Sept. II. P.ussla has reached the reign of terrot period. Todnv tho cry Is for blood for wholesale executions. Bolshcvikl members are demanding the" lives of former Foreign Secretary Paul N Mlllukorr, Michael Ttodzlanko, president of tho Duma, nnd twenty other Duma mem bers. Nothing could more strikingly show tlie horriblo distortion of mental perspective developed by German propaganda of Incal culable strength than this growth ot the guillotine spirit In Itussla. The Rolshcviki are pacifists; they demand universal brother hood nnd an end to killing. To insure this they demand execution. Gerinany'a propasnnda. inoro than tier many's arms, menaces the life of Russian democracy today. The Teuton Intrigue Is training even into tho Winter Palace to attempt Premier Kercnslty's life. It tempted Kornllofl lo revolt It is opreadlng unbelievably scandalous s'oiles of Itussla's gicat leadcia to create dissen sion In the ne" democracy. It had succced In befuddling the Pus Man public almost to the point ot hopeless ness when I left to tho point where the insano cr Is for blood. Hussla's armiea nro holding nt hay ninety and a half divisions of Herman troops 1,337,000 men while Germany concentrates on her Intrigue, llusslnti at my olllcers are keeping together enough of their forces to Btop the German war machine They are supcrhorocs. At homo Kerensky Is an open target for if 41 11 S 71 III I f Ii . ; 'I!!!!'; ! ;....' ''' i !! i ! ' . ' ' ! i I ! 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"y no tnn. tery oui, uiwtr rooms, cioso to vvher t ""' works, were charred In . ..IV'f'nrtr Lower rooms, closo to vvher. v kl' two weeks ago, "riovi, t,, At the lima when Kornlloft was . . on Petrograd, Ucrman agents Inr.ch!nt report that tho UrlUal. T ov!f'u? vored his revolution and th ,,""' ' wicu ,119 muiuuuii ana the Dullln. T. " of Kerensky. How well they did theh. n 14 indicated In the fact that the ?! Government actually sent a ruarrt -.7"" soldiers to the embassy, fearhur Si11'' n rt attacks by Russians enraged' at the y?llll' 7"ion tlioutht that Kerensky was menaced. Friends "Drop In" Hp iiiiiiMiiiiiMMmiiiiiBiyiTOiiiijM,, I JJsHBk,ii""iy a WHE I I 1 r ff c r M l 3 V5 iiC I Ml I ':::'V S -1 J V SUITS AND GOATS For Women and Misses X 3 3 I 5 S1C.00 III UP S $6161.50 i Ml mR UFwt$ym& A ROOM COLONIAL$l gQ Tm It.SO a VTetV ROOM BRIDAL fcOCft niTTPrnn T.rws uOM SXJkQ a, VTeek ROOM PERIOD to AC fiTTfTl?irp Tnn . fJIl (4.00 a Weak a Palm of FBrnitun" i. 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