Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1915-02-11

yearly saving to tho city in financing all
improvements
THE provision in the constitutional
amendment prescribing that the per
cent. borrowing capacity gained thereby
shall be expended by the city on transit
and port developments, the State is as
sured that such portion of this additional
3 per cent. as may be borrowed from
time to time will be invested in facilities
OF substantial and income-producing
nature.
This provision will safeguard the pres
ent high standard of credit which the city
now enjoys, without restricting the ample
and general borrowing capacity of the
city In a way which will hamper other
public improvements.
"The average yearly fixed charge which
the city will incur for transit develop
ment under the terms of the constitution
al amendment will be only S2,S90000.
with the exception of that portion of
this yearly fixed charge which liz repre-
sented by interest and sinking fund
charges on the s8,00O,00O proposed to be
borrowed this year, II will not become a
charge against the current revenue until
one year after the high-speed lines have
been In operation and producing revenue
ERRONEOUS STATEMENTS.
1--WE have heard all sorts Of erroneous
statements about the possibility of the
tax rate being increased by the construc-
ton OF the high-speed lines.
Tho self-supporting plan for transit
development will not require any increase
In the tax rate. on the contrary, the di-
rect and indirect returns resultant there
from will largely exceed the yearly pay
ments required for the interest and sink
ing fund requirements on the bonds rep
resenting the cost thereof
WARE AND MN1CHoL IN TILT.
During Taylor's speech Senator Ware in
terrupted to ask if he would be satls-
fed with small portion of the money
| allowed under the personal property act.
| McNichol, however, was unwilling that
| Ware should interfere, and said It wasn't
| fair to ask any questions until the Di-
| rector had finished speaking.
Ware said: IT have no desire to embar-
| rass any one, but I feel that the two
| matters are interlocked. II you get the
| $50, 900 for general Improvement think
| the amendment would be unnecessary"
Connolly then said:
| II believe that we should not restrict
the use of the s6o,OOOOo0 which will come
with the passage of the proposed original
| amendment to transit and port. You
| should not do II now or later"
Director Taylor replied:
II have tried to discuss this with your
| committee, but I would not arrange an
! engagement with you.'
THAT was on account of the pressing
nature of my personal business" Con-
nelly said.
When Director Taylor finished speaking
Senator Beidleman inquired what would
| be the effect upon the city II the consti-
| tutional amendment were held over for
| two more years through its being
| amended.
| Director Taylor assured him that II the
| amendment was passed by this Legsa-
| ture Philadelphia would be able to finance
the transit improvement at the lowest
cost to current revenues
| Director Taylor said that under his
scheme of financing, for a completed tran
sit system within a definite term OF years
the sinking fund charges during the first
| year of operation of the road would be
nothing because they are capitalized In
the loan itself Under the amendment
the interest charges would be approx.
mately per cent. Otherwise the city
would have to pay interest and sinking
| fund charges amounting to 6h per cent.
WANTS $6,ooo,o00 FIRST YEAR
Director Taylor informed Senator Nc
Nichol, in a colloquy following hi,
formal address, that he would be salts
fled to receive s6,OoO,0Oo for transit from
the additional borrowing capacity of ap
proximately $4o.ooo.00o allowed the cit,
under the personal property act. passed
by the Legislature In 1918
Director Taylor declared that the S..
100000 would be adequate for him IL HI
could be assured that the pending amend
ment to increase the clty's borrowing ca
paclty from to 10 per cent. for transi
and port development would pass tn,
Legislature at this session. He affirmed
that the additional financing necessar!
for transit beyond the s6,oO0000 could b,
provided from the additional borrowing
capacity allowed by the amendment
which. If passed by the Legislature
would come before the voters next No
vember.
He asserted his willingness to allow tht