Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1914-11-10

| program II I were an owner OF Unior
| Traction Company stock. upon which only
J $3.50 per share has been paid IN cash
and upon which ! still owed individually
| $3.50 per share, subject to the call OF
/ tho Board OF Directors 7 would certainly
indorse the transit program as arranged
| between the Department of City Transit
and the management of the Philadelphia
Rapid Transit Company without any hest-
| tation whatever
THE only burden which is placed upon
| the Union Traction Company Is the neces-
| sity OF providing for the extension OF the
| existing surface System when and as such
extensions are needed In the future.
Everybody knows these extensions must
be made by the existing companies-it
tho Philadelphia Rapid Transit Company
cannot make them the Union Traction
Company must make them or be placed
in the untenabe position of throttlins
Phladelphia's development and denying
the people a necessity.
ut would not be any hardship on the
Union Traction Company stockholders
who are In receipt of n rental Of Sl,SOOOOO
per year, to turn back one-half OF that
rental. or one-half OF the dividends which
they receive, as an additional Investment
upon which they would be allowed per
cent in addition to their present diHi-
Clends.
"Tf they will Join hands with the p.
r. r. Company and with the city in this
matter they will perform a great service
to themselves and to the people of Phila-
delphla The city has moved conserva-
lively in this matter The Union Traction
Company stockholders have been given
plenty Of time for deliberauon.
"The time has now arrived when the
city must proceed to establish rapid tran
sit facllltics-whether they shall be estab-
lished in a manner which will afford pro-
lection to the P. Il. T. Company and the
Union Traction Company stockholders, or
whether they shall be established lnde-
pendently and in competition with the eN-
isting system. must be determined
promptly by the Union Traction Company
stockholders.
I'VE should not magnify the part which
the city proposes to take In the transit de-
velopment There are no serious difficult
ties OF any kind in the way. The raising
of si6 100000 for the undertaking by the
city during a period of four years will
only subject the city to an average an
nual interest and sinking fund payment of
1880, 900 for a period Of so years under ex-
istng legislation.
During that 30 years the sinking fund
payments will cancel the entire debt and
at the end of that period the city will own
the facilities as a great municipal income
producing asset, with the debt incurred
therefor extinguished. Under the constt-
tutional amendment these average annual
interest and sinking fund payments will
be reduced to s2,3CO,00O for a period of so
years.
During that 50 years the sinking fund
payments VIII cancel the entire debt, and
at the end of that period the city will own
the facilities as a great municipal income
producing asset, with the debt incurred
therefor eXtingulshed.
ITO offset this annual interest charge,
the city will have the net earnings pro-
duced from the operation of the munich
pally-owned high-speed lines In excess OF
the reasonable payments allowed the oper-
ator No one can doubt that the recon-
mended subway and elevated lines will
produce a very large annual net income.
Furthermore the broad advantages
which will be brought to tho city and to
the citizens by the adoption of the transit
program would amply Justify the estab-
ishment OF the recommended facilities |
and the assumption OF the annual fixed
charge on their cost by the city.
THE increase In taxes collected bv the |
city owing to the increase in taxable |
values of real estate produced by the |
high-speed lines would !
probably be Sl,OOO0OO per annum. The |
time saved by the travelling public in
Philadelphia annually, calculated as
worth 10 cents per hour, would have n
value Of s9S9,OOO per annum.
THE discriminatory exchange ticlat
charge which is now imposed upon the
public, amounting to over $500 900 per an
mum. would be eliminated, as provided In
the program.
I'VE should not overlook the fact that
the State has by act of assembly con- !
tributed subsidy In aid of transit de-
Velopment by surrendering the 1-mlll tax
On personal property. formerly collected
by the State. to the city.
THE recommended rapid transit svs-
-em connecting every important section
of the city with every other important
section OF the city either directly or by
'ree transfer between high-speed lines
operated in conjunction with the exist
ng surface system serving as the agent
or the gathering and distributing of
'apid transit passengers to and from the
stations on the hish-speed lines at each
md of the high-speed journey without
'Xtra charge, will bring broad and equal
advantages from the rapid transit devel-
'pment 10 every section Of the city.
philadelphia has grown to the point
where the existing surface system is of
Inadequate capacity to move the exist
ng traffic flow. This is demonstrated by
etual facts which cannot be successfully
'ontradicted, The novel and complete
ratttc survey which was made in 1912 de-
'eloped the actual flow of traffic between
very square mile and every other square
nile In Philadelphia at every hour of
he day, the channels through which that