Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1914-11-12
CITY FULLY ASSURED
AGAINST HIGHER TAX
UNDER TRANSIT TPLAN
Director Taylor Shows Max
imum Liability Would be
Counterbalanced by Avail
able Offsets.

False impressions are frequently Great
| ed by those attempting to block the
citys progress for selfish reasons, and
/ there is a possibility that these obstruc-
tionsts may again raise the unwarranted
| cry that the tax rate may be increased
should the high speed transit lines be
! built
To show that there is no ground for
such predictions it is relevant TO publish
the following statement made by Director
Taylor, of the Department of City Tran
sit, in one of his recent reports:
"T wish to warn the people of Philadel-
phia against some rather loose state
ments which have been made recently
regarding the probable effect OF the tran
sit program on the tax rate of the city
of Philadelphia. I have endeavored to
show clearly that the maximum annual
liability which the city would assume by
reason of issuing all of the bonds neces-
sary to complete the entire program as
outlined would amount to only S2,0le,567
pcr annum in the early years of operation
and that the offsets which the city
would have available to meet this an
nual liability would be more than SUM-
cicnt to fully counterbalance It,
eve are constantly hearing that the
transit program may increase the present
Sl.JO tax rate in the city TO 81 or S2,25
As the assessed valutlon OF taxable real
estate in Philadelphia amounts to up
wards of sl,6l1 100000 at the present time.
an increase of 10 cents on 500 in the
tax rate would yield upwards of s1,6i1,OoO
per annum, which amount, added TO the
one-mll tax OH personal property Ct569,OOO
per annum) granted to the city by the
State as subsidy In aid of transit de-
velopment. would make a total OF up
wards of S22lO.OO0 per annum, an amount
in excess OF the city's maximum annual
liability under any possible conditions re-
sulting from the carrying out of tho
entire program as outlined. An increase
OF 10 cents ON $lO0 in the tax rate would
be the very maximum amount OF liability
which could be imposed upon the city in
the carrying out of the entire program
as outlined, If the new lines earned moth
ing whatever above the payments allowed
the operator and II the city had not the
other offsets specified. including any
profits resulting TO the city from the
operation of the municipal lines.
As the transit program will be sslf-sup-
porting and the only contingent liability
which the city would assume amounts To
less than 10 cents on 800 Of assessed TaIu-
alton Of taxable real estate. fully and COM
pletely offset as above stated, IL will not
Increase the tax rate. a
'rhere is great worldwide awaken
ing to the view that communities must
collectively, for the good OF all, under
take wider spheres OF services and that
the community itself should retain. to
a greater degree. the unsarned Increment
in values which is created by the con-
centration of its own population and
by its own activities. Here now within
our own city We have an undoubted
urgent need for better means OF trans
portation. Private interests cannot
handle this proposition without municipal
aid. No one can reasonably doubt that
the comprehensive transportation system
proposed Will In time develop ample direct
capacity, not only to carry itself, but
to actually relieve taxation for other
purposes"