Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1914-10-27

existing surface system will amount to
about $SOO,OO0 per year. II this be cor
rect, then the Union Traction Company
stockholders would only have to invest
or turn back into the property annually
for the time being $4,000, or an amount
equal to about one-half of their annual
rental of 81, 100000, upon which money so
invested or turned back into the prop
erty they would be allowed interest at
the rate of per cent, in addition to
their present dividends.
THE UNION TRACTION STOCK
HOLDER.
In other words, it would simply mean
that each Union Traction stockholder
would reinvest at per cent. one-half the
dividend which he receives.
The city now is in shape to proceed with
it's part under the terms OF the pro
gram" The amount of money involved
in constructing the first mentioned lines
is S45, 100000, upon which to secure this
money the city's annually Increasing
borrowing capacity and the added bor-
rowing capacity provided by the personal
property tax act in the amount of $780,
600 900, plus the annual increase thereof
will be available.
The pending constitutional amendment
Will still further increase the city's bor-
rowing capacity by about $50, 100000. 1t
provides for the payment OF interest ac-
cruinE during the constructive period out
of loan funds, instead of out OF current
revenue. and permits the city TO issue 90
year bonds instead of 30-year bonds,
thus cutting down the annual sinking
fund requirements from 2Ia per cent. to
/ per cent. Several other important fea-
lures are also included. This amendment
Will be acted upon by the Legislature at
the forthcoming session and finally by
the people in the general election in No
Yember. 1915
THE CITYs PART.
The city's part in the undertaking as
outlined only involves the raising OF S45.-
6s2, ,OO0 during a period of four years
Oittle Of this money will be required dur
ing tho first year.. The maximum total
ultimate annual charge thereon (sinklng
fund payments included) would be Gla per
cent. on the cost. If the Constitutional
we're TO fail of adoption. This
total annual charge, however, will be
reduced by the adoption OF the Constltu-
tional amendment enabling the city to
issue j0-year bonds instead of 3O-year
bonds, TO an average OF per cent Of
the cost. Taking the basis OF GA per
cent. per annum, the total maximum pos
sible liked charge, including sinking fund
payments, required TO discharge the en-
tire Indebtedness representing the total
cost OF the lines within the term Of the
bond issue, would be E3,03S,60O per year,
and II is practically certain that the
average fixed charge will be reduced to
y2 2s5, go per year under the new sinking
fund requirements prescribed by the Con-
stitutiOnal amendment In any event this
annual fixed charge will be onset by the
Items:
Ql The net earnings produced by the
operation OF the facilities, In excess of
payments allowed the Oper-
stor.
C2l BY the increase in tax collections
resulting from increase OF taxable valu-
alton OF real estate, produced by the con-
struction and operation OF the new high
speed lines. probably $1,000 600 per annum
and upward.
90 By the value OF time saved the
travelling public In Philadelphia, which,
1n basis OF IS cents per hour would
AMOUNT 10 upward OF 81, $50 900 per annum.
(4l BY the elimination of the exchange
ticket charge. which Is now imposed upon
he public, amounting TO upward OF
$50, COO per annum.
10 By the l mill tax on personal prop
.rty formerly collected by the state and
BY the State under recent
egislatlon 70 the city as a practica' Sub
iidy IN aid OF transit development, I early
$1,000 per annum.
(6 BY the operation Of ths sinking
und In discharging the total cost Of the
ines within the terms Of the PC "a is-
ue. 70 the end that FhilsasiPhit Hin
hus ultimately be Ia possession % tnsss