Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1915-12-03

tracts for the furtherance Of the many
public Improvements provided for in the
measure.
TAX INCREASE JUSTIFIED.
The drain which the new bond issue
will entail upon tho tax revenues of the
city for annual interest and sinking fund
charges is well known to the tinanciers
back of the loan. but they contend that
even though an apprcciablc increase IN
the city's tax rate results, the benefits to
be derived from the passage of the loan
will many times offset the Increase in
taxes To provide for the requests oil
the various municipal depai tments for
1916 would require n tax rate of SlS9 IN
stead OF the present rate OF 81 per 800
of taxable property. II was asserted to-
day by members OF the Finance Commit
tee that the tax rate increase to pro-
vide for the loan and other expenses
would not he I'm excess OF 20 cents.
No time will be lost in passing the leg
islation necessary to place the big loan
before the voters Councils will sit every
week OF the present month The bill fav-
orably reported yesterday by the Finance
Committee will be printed this week Net
week if present plans are carried out 1t
will be passed by Common Council and on
tho Thursday following favorable action
is expected in the Select branch. This
will enable the bill to reach Mayor Blank
enhurg on the day following its inal
passage by the upper branch.
Mayor BlaukcnburE is expected to sane
tion the biz loan, which contains prov.s-
ion for all Of the great municipal under
takings started during his administration,
and there is little doubt Of his approval.
Should he see 1T for any reason To veto
the measure the men buck Of the measure
could easily pass II over his veto In time
t., ,. IL Far NO VptIirpI 70 DAYS
before February s. the date set for pupu-
lar vote on the loan
In the event Of the loan receiving tho
approval OF the voters. IL VIII be neces-
sary for Councils to pass measures au-
thoriziug the borrowing of the sums OF
money needed next year for the improve
mrnts named Before the loan is iloatcd
1t will he necessary To- advertise the bill
for four weeks. All this necessary legis-
lation requires su much time that no
money is likely to be- borrowed before
Npril.
Tho need of funds for the Frankford
elevated. in addition tu the money al
ready appropriated, will cause that
project to be included in the first part
of the loan noatcd. The phrascoloSy oi
the loan measure now before Councils
makes it possible to use part OF the
loan money, under the subway and elc-
waited railroads section. for elevated lines
contaminated but to be decided upon
later This opens the way to the CON
struction of number of branch elevated
lines to relieve congestion in various ou'-
lying sections clamorinE for relief
The S45. 900. 900 In the loan for elevated
and subway construction and SS,OOo,Ooo
for the port would not ut once constitute
charge against the current revenues
The bonds covering these amounts will
be issued upon the basis Of the COnSti-
tutioual authority granted by the amend
ment approved by the voters at the cleo
tion last month. This creates "A new hor-
rowing power Of 10 per cent. for subway
and elevated construction. harbor i'm
provements and docks. the issue Of
bonds for 80 years instead OF 30 years,
and permits OF the payments Of the inter-
est and sinking fund charges on these
bonds out OF their proceeds for the years
the projects are under construction and
for one year thereafter
For this reason the greatest drain will
fall upon the city, in the nature Of fixed
charges. on S37.OOOOoO OF the big issue.
These bonds can only bc issued for 30
years with corresponding higher annual
fixed charges for the shorter period OF
$4,000 a year for each $1,000, 600.
Tho borrowing capacity of tine city at
the present time Is approximately 500
OoOeoo SO that the new loan, when toat"a'
will leave the city with comparatively lit
tie leeway in the matter of a reserve bor-
rowing power.
Many of the items i'm the loan, In addi-
tion to those for transit and port improve
ments are considered popular Among
these IS the S}.OOoODO item for the art mu-
scum 10 be hullt at the Green street en-
trance to Fairmount Park. There is avail
able for this building at the present tim"
$500 600, and the item In the loan bill indi
Gates that this project will be pushed at
great Specd.
O'her popular items supposed to lend
strength to tn" loan project provide vast
sums for the extension OF the water sup
ply system. not only in South hhiladel-
phia bur I'm other parts Of the city for
the construction OF a new Blockley, addi-
tional buildings for the insane, f""h
minded and female indiEcnts at Byberr'
and general highway improvements.