Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1916-08-21
FINANCIAL JOKER THREAT
EMS TRANSIT DELAY

MO CONTRACTS for transit work un
4 der the authorizations Of this year
can be let until some part at least bf the
loan ratified by the people in May is sold
II, however, even 81, 100000 worth of the
bonds for transit purposes are sold. II
will be possible thereafter to let contracts
in advance of particular bond sales. So
run the technlcallties in the case, accord.
ing to responsible officers, the popularity
in the case of transit arising from the
fact that fifty instead Of thirty year
amortization term holds for these special
bonds.
The city requires now about 100000
wherewith to pay mandamuses. due to
Parkway condemnations, which manda-
muses. are drawing interest at the rate Of
six per cent. Quite obviously It is good
business to get these paid, as the saving
in interest will be very great. There
ought, in fact, to be no further delay In
this matter, as the unnecessary cost to
the city is approximately FIVE hundred
dollars day.
The condition Of the security market Is
such that it is possible the city would
have difficulty in selling at par two sue
cessive issues of bonds BY law the tran
sit bonds cannot be sold for less than par.
If, therefore, 100000 should be issued
for the Parkway and difficulty should be
experienced later in selling a second issue
for transit, the effect would be to tie the
whole program up and delay would be
inevitable.
In the circumstances Il seems perfectly
clear that not nine but ten millions of
bonds should be sold, of which s1,OoO,Ooo
should be specifically for transit work.
The effect of this would be to open the
way for the letting of whatever transit
contracts seemed wise, irrespective of the
amount involved. 1t is, indeed, the one
sensible and sure way of making the
transit grants available and rendering
acceleration Of the great enterprise pos
sible.
There has been too much delay in prose-
cutting transit work already. Several
days ago the Mayor issued statement.
considered a reply to certain pessimistic
utterances by Director Twining, in which
he declared that he was ready to push
things along and that new contracts
would be advertised for in the near
future. If no new contracts can be let
until some of the bonds are sold, It is per-
fectly clear that the first thing to do is
to sell some transit bonds. Instead of
that the city is confronted with a pro-
posal to sell bonds for the Parkway only
We doubt very much If the TECHNICAL
ties of the situation have been called to the |
attention OF the Mayor. We confidently |
expect that he will now take measures
promptly to see that the financial diff |
culties are removed and everything made |
easy for Director Twlning to get busy.
Certainly 1t will be amazing If subordinate |
projects authorized by the May loan are
hurried along while the main project pro-
vided for is left up in the air.
The important thing for citizens to re-
member is this: Unless some bonds for |
transit purposes are sold with the next
batch of bonds offered to the public, the
whole transit program will be threat
ened with long and tedious delay. There
is nothing that would better please the
obstructionistsN who, although they have
been whipped in every encounter in the
open. are still hopeful that they can ac-
complish further delay by indirection.