Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1914-10-27
STATUS OF RAPID TRANSIT (Continued)

lines free of debt as great income pro-
ducing municipal asset
~ BY the many broad advantages
which Will accrue to the city, travelling
public, property owners and the people
In general, resultant from the establish
ment OF an adequate and efficient trans
portation system.
RETURN TO CITY.
Leaving out of consideration the in
come produced and secured to the city
by the operation of the municipal lines,
we shall thus have indirect but tangible
and permanent return to the city and TO
the citizens, totaling upward of 81, ,309, 600
per annum, to offset an annual fixed
charge of only S2295, 600. which Includes
payment of the total cost of construc-
tlon during the term Of the municipal
bend issue. This annual charge will
disappear with the extinguishment of
the bonds.
Director Taylor is right in urging
that there shall be no delay In estab-
fishing the recommended high-speed lines
and operation thereof in a manner which
is essential TO the welfare of the people
of Philadelphia.
II the existing companies fail to
promptly join together and accept the
terms of the program, the citizens of
Philadelphia will establish the high
speed system regardless of that fact.
The only change in plans necessary will
he provision for a Chestnut street sub
way to connect the Frankford and Wood
land avenue elevated line, instead OF
their being connected with the present
Market street subway-elevated line
through the business district.
The delay on the part OF the Union
Traction stockholders in ratlfying the
program for transit development is in
Yiting a disaster to that company which
Philadelphia has gone to the limit to pre-
vent. The Union Traction Company
stockholders now receive a rental OF n.-
100000 per year on their 100000 shares OF
capital stock, of par value of $50. 1000, 900,
uron which there has only been paid In
slLb1 per share, or a gross amount of
$40, 300, ,OOO Each stockholder Is therefore
in receipt of dividends amounting to 17.15
per cent. on the actual cash payments to
the treasury which his shares represent.
IL the city is forced TO proceed in estab-
fishing its own rapid transit facilities.
without Union Traction Company or Phil
adelphia Rapid Transit Company CO.
operation, the Philadelphia Rapid Transit
Company will be annihlated by com
petition, the lease OF the Union Traction
Company to the Philadelphia Rapid Tran
sit Company will be wiped out and the
Union Traction Company will be forced
to take back its property, shoTn OF the
advantages accruing to 1t under the 1907
contract between the Philadelphia Rapid
Transit Company and the city. II will
also be shOrn of the large volume OF
traffic earnings diverted by the COM
petltiYe high-spesd lines and confronted
with the certainty that ne distribution
OF prOfits to the extent of Is per cent
on the paid in value of the capital stock
would ever again be permitted by the
Public Service Commission of the State
Of Pennsylvania In the absence OF the
present lease or contract with the Phila-
delphia Rapid Transit Company, which
Is the sole possible legal justification for
that eKorbitant return on the investment
RAPID TRANSIT MUST COME.
Furthermore, in the event OF dissolu-
tion Of the Philadelphia Rapid Transit
the Union Traction stockhold-
ers would be Immediately called upon
TO assume the outstanding obligations
Of the Philadelphia Rapid Transit Com
pany which they have guaranteed.
The people OF Philadelphia expect the |
existing companies to cooperate with !
them In establishing the rapid transit
system: In return they will AFFORD the |
existing companies protection against |
loss in their net income which Will re- /
suit from the carrying out OF the CO. |
operative program establishing the new |
lines.
IL the existing companies do not want |
this protection, the city Will go ahead |
any way, one way or the other Which /
gay depends largely On tbs Union TFsc- |
don stockholders.