Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1914-11-10
EVENING DGER-PHTLADELpHTA TUESDAY, n
TAYLOR DEFIES
UNION TRACTION
Continued from Paee Ons

Continued from PAGE One
| protection from competition the city Of
fers them.
The Director today reiterated the state
monts he made last night before the Traf
nc Club, and the enthusiasm OF those pres
ent indicated clearly where they stood OF
the question Among other things, in tn,
course Of his address, the Director said:
''The recommended rapid transit sys-
\ tenn consists or:
"The Broad street subway running
north and south, with branches. and the
delivery loop In the business district.
IAN elevated railway extending from a
point OF connection with the present Mar
ket street subway at Front and Arch
streets through the northeast section to
F'rankford
IAN elevated railway extending from a
point Of connection with the present Mar
ket street elevated line at SOth and Mar
ket streets through the Woodland avenue
district OF West Philadelphia to Darby.
Later subway beneath the Parkway
extending from tho delivery loop to a
point near the Green street entrance Of
Fnirmount Park and then from there an
elevated railway extending through the
northwestern section Of the city to Rox-
borough.
"The cost of the first three mentioned
lines will be approximately $4,000 900.
"a program for rapid transit develop
ment has been arranged between the off,
cials of tho Philadelphia Rapid Transit
Company and the Department Of City
Transit.
TERMS OF THE PROGRAM
THE terms OF this program provide that
IT, as and when the city builds these lines
the cost Of which will be approximately
si6,OOO.OOO, the Philadelphia Rapid Transit
Company will equip them at a cost OF
approximately $4,000, 600 and operate them
in conjunction with its present system.
the Company receiving annually out of
the earnings Of these municipality
lines:
II. Interest on the company's invest
ment in equipment.
'2. A payment which will sustain the
conpany's normal net income gained
prior to the establishment of the munich
pally owned line or lines against decrease
or loss due to the companys participant
Ing In the cooperation program as stated
therein, excepting that loss which re-
suits from the elimination of exchange
tickets and which the company is COM
pensated for otherwise.
$50 far this Is a very simple PROPOSE
ton. The city has the legal authority to
build these lines and has n Department
OF City Transit, which is designing them
with legislative authority to supervise
contracts and construction.
Furthermore, the city has over s4o.-
100000 borrowing capacity resulting from
the personal property tax act, In addi-
tion to its otherwise general borrowing
capacity. 1t therefore has the money to
pay for them. The pending constitutional
amendment will undoubtedly be adopted
at the November election in 1915. and will
bring the city upwards of 100000 addi-
tonal borrowing capacity and permit the
capitalization of interest accruing dur
Ing construction and reduce the annual
sinking fund payments on the bonds is
sued from 2l5 per cent. to / per cent.
Comparatively little money will be eX-
pended during 1915, hence the provisions
of the constitutional amendment, when
operative, will apply to almost the en-
tire investment to be made by the city.
There is no question about the city's
ability to establish the recommended
rapid transit facilities under the co-opera-
tive program arranged with the P. r. I.
Co.
There Is no question whatever as to
the citys ability to establish the facilities
and to have them equipped and operated
independently II the Union Traction Com
pany persists in Withholding Its support
as provided in the program.
There is no question whatever as to
the Philadelphia Rapid Transit Company's
ability to raise the s12, 100000 required to
equip the municipality owned high-speed
lines for first mortgage on that equip
ment and also a 5O-year leasehod of
the municipality owned facilities and the
earnings procured thereby affords most
attractive collateral upon which to secure
this money without any difficulty |
whatever.
UNION TRACTION DRAWBACK.
what is needed now to make the |
program effective is approval on the part |
of the stockholders of the Union Traction |
Company and on the part of City Coun-
ellis. The program provides that the Phila-
delphla Rapid Transit Company will rely |
upon the Union Traction Company to |
aid in securing only such funds as will |
be required for the normal extension of |
the existing system, the requirements for
which will be greatly lessened by the
of the new high-speed |
lines.
Furthermore. It provides that the
Union Traction Company and the Market
Street Elevated Passenger Railway Com
pany are 10 become parties to and be
bound by the terms OF the agreement with
the city.
"A street railway company which con-
trolls all of the available avenues for the
delivery OF passengers throughout the
city Is, In fact, monopoly and can
not successfully decline to extend it's sur
face railways when and as required to
do so by public necessity.
The question for the existing COM
panies to decide is whether they will
force the city to establish them and have
them operated as an independent COM
Detitor, or whether they will welcome
the protection which has been accorded
them by the terms of the cooperative