Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1916-01-18
REMIT THE GAS TAX


Tho public hns not shared in the reduction
Of gas prices. The operating company sells
gas for 10 cents. but the consumer pays one
dollar. \ twentv-hvc per cent. taV i eN-
orbitant and int'lcrnble. change III taxa
tion is Inevitable. The readjustn,ent Shomd
wipe the gas tax out entirely. There are
no lesal difficulties In the way. 'oun'h-
manic ordinance put Phtlnde'phin on nm
equality with competing cities.
THE gas lease Of 1897 provided, first. that
i at stated intervals the company should
reduce the price cents the thousand; Sec
ondy that the city by ordinance should be
empowered to fiN the cost. though never To
reduce it lower than the amount fixed in
the contract for the company to receive
These two provisions. taken together are
sufficient evidepcc to show that IT was the
intent to give citizens the benefit of each
separate reduction But the city in each
case mas gobbcd up the difference and sent
it sliding into the treasury
The companys charge for gas has fallen
to 50 cents Yet by ordinance the consumer
is still compelled to pay 81. After most year
the company's price will tumble down to -
cents But invariably the city permits tho
users Of gas n6 participation i'm the decrease.
This means simply that at intervals an
extra tax of ; cents the thousand is levied on
all users of gas, without their consent and
in spite of their protests
II is a grossly unfair tax. because it is
levied on a part of the populetion only. 1t
is an unwisc taN, because II penalties indus
try and progress. 1t is an cNurbitant tax, be-
cause II amounts to - per cent. There is
SO-ccnt gas in New York and there is 80
cent gas in Baltimore. With these two cities
Philadelphia must compete for citizens and
industries They both have us backed off
the map
40 argument to support this cXtravasant
nd ntolerablc condition is offered. except
hat the city needs the money. Why not,
then, make a deal with the electric company
to add 80 per cent to its rates and hand the
surplus over to the city? or why not an
ordinance requiring dealers in sugar to
charge . cents the pound more than normal
prices and credit the city with the profit? II
is true that the city owns an equity in the
gas works. but so far as any cash invested
by taxpayers is concerned the Bureau of
Gas reports:
AS a matter of record the old reports of
the former operating Bureau of Gas indi-
cate that most OF the SS,25oOOC secured by
loans TO build and extend the gas works had
been paid out OF gas receipts so that the tax
payers had not carried the expense of the
works in the least while the city owned,
practically elf-paid for, the largest munici-
pal gas plant in the United States
In fact. during II years of city operation,
there were cash profits of approximately
s5OOOOOO over and above all expenses, in
Guiding extensions and betterments
The equity of the city, therefore, should
be exercised for the relief of consumers, not
for the expansion of the treasury. For the
rate to the consumer to remain stationary
when the actual charge of the gas company
is being reduced five cents, the leap is a
ridiculous thing, or tragic for it betrays a
lamentabe inability on the part of the citi-
zenshp to protect its own interests.
The Mayor hinted in his inaugural address
at a study of taxation and readjustment
along modern lines to assure income equal
to the city's necessities. There are. for in
stance. many great improvements which
must he undertaken without delay. The
financing Of the transit system will not affect
the rate of taxation, since early interest
charges will be capitalized other enter
prses, however on the way.
The price of gas was not an issue in the
recent campaign. The Mayor is not obli-
gated in any way TO work for a reduction.
We suggest, nevertheless that in studying
the revenue situation, he give to this phase
of it his earnest attention. We urge on him
the wisdom of removing the gas tax, in
whole if possible, in part in any case. Let |
there be substituted for it an equitable tax, |
levied on all alike and not on one class of
citizens only.
Since some change in taxation is inevitable, |
let absolute equalization be the underlying |
principle. Let the thing be settled right
while it is being settled
The Administration can do nothing of more /
lasting popularity nothing more likely to
earn the commendatlon of all classes, than |
to remit the gas taN thus putting into effect |
a program which the people ratified by their |
votes more than four years ago and of the /
benefit of which they have been deprived by /
subterfuges of one sort or another
Unpledged. unfettered his hands free. a
great majority behind him in Councils. the .
Mayor can do this thing and reap from il a /.
fun need Of glory and the gratitude OF |
thousands, particularly among the poor.
Respectfully we suggest f..