Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-04-16
TAYLOR DEFENDS
TRANSIT LEASE
In Exhaustive Analysis
Points Out Fallacies in
Twining Report
VAST PROFITS FOR CITY
Contract With P. R. T. Would
Mean Not Deficit, but $780,
100000 Gain in SO Years

"A. Merritt Taylor, former Director of
the Department of Transit, in an appeal
10 citizens denies charges made by Di-
rector Twining that the proposals of the
Philadelphia Rapid Transit Company In
the transit lease are not acceptable to the
city.
Taking Director Twining's own figures
and those of Ford Bacon & Davis. con-
sulting engineers. as the basis for his cal
culations, Mr.. Taylor says that instead of
the proposed lease burdenng the city with
deficit, the direct profits to be gained dur
ing the fifty-year period would total more
than $1,000 900.
FORSEES VAST PROFITS"
Declaring that the company's proposed
lease secures to the city vast profits, ade
quate service and splendid facilities" upon
just terms, Mr.. Taylor points out the fol-
lowing remarkable features:
u) The Departments present estimates
of the direct profits to be gained by the
city during the fifty-year term of the con.
tract Is over 100000 900, exclusive of the
abnormal increase in tax return to the City
Treasurer resultant from the abnormal in
crease in taxable values which, will follow
Ne construction of the high-speed system
t2) Street car passengers in Philadelphia
will be freed thereby from the exchange
ticket charge, at the ultimate expense of
the company this charge, If continued dur
ing the next fifty years. would be an aver
age tax of much over 81 1000,0 a yeGr on
passengers This item is not included in
the citys direct profit referred to above.
(S) The construction of the city's high
speed system in sensible manner and
the equipment and operation thereof under
the terms of the proposed agreement, will
not rquire an increase in the tax rate.
tD Passengers will be enabled thereby to
travel upon the company's surface lines
upon the high.speed lines. or by the joint
use of the Company's surface lines and the
high-speed lines, in a forward direction
throughout the city, for one five-cent fare
a His statement which is long and ex-
haustive analysis of the situation, is ad-
dressed ito the citizens of Philadelphia.
The proposal is far better from the city S
| standpoint than is the 1914 tentative agree
| ment,' according to the statement. which
| adds that several of Director Twining s
| twenty-three directions are directed against
| proposals actually made by the Mayor and
| not by the company. After the 1914 agree
! ment Mr.. Taylor says that he prevailed
upon the company to reduce the amount
| which the city was called upon to protect
| from $4,000, 900 to 81 800, 900.
SCORES oBSTRUCTIONISTS
| "You must thrust aside the carpine
critics and floundering obstructonists, who
|
tempt to sidetrack constructive plans" the
| statement warns.
| Dismissng estimates A because they are
predicated upon the unwarranted assump
| ton that there may be only a slight in
| crease in street railway gross earnings
| until 1888" Mr. Taylor expands upon the
alternative, estimates B, offered by Ford
! Bacon & Davis, a firm OF Integrity, ability
and conservatism" OF estimates b Mr.
Taylor says:
Estimates assume that the averag
| yearly increase in gross earnings durin
the first ten years will be per cent com
| pounded and that the increase will be muc
less in later years. This assumption
most conservative, for during the fourteen
year period beginning in 1903 and ending 4
1916 which included several years of vic
lent depression, the average increase in tn
companys gross earnings was AIS per cen
per year. Since June 80, 1916, the com
panys gross earnings have increased at tn
rate over IL per cent per year"
BIG GAINS TO CITY
Estimates b, based upon fve-cent far
and free transfers, according to the state
ment, assure that the full charges of tn
company including dividends on stock, viii
always be earned, and that, during tn
ffty-year contract period, the city will b
repaid the attachments of taxes made to tn
|
change ticket: also, the total cost to tn
city of the city-built lines, amounting t
SS7, 800. 900 and that, in addition thereto
the city will receive surplus of S56
O95 900 and that the city will obtain, with
out cost, at least $40 900, 900 worth Of equip
ment and at least S26,5O0,OOO as sinkin
fund to buy company stock
P.R. T. EARNINGS EXCEPTIONAL
In nine months of the fiscal year I'll
, company has earned IL per cent increa'
over its gross earnings whereas the est
mate assumes only per cent increas
, | according to Mr.. Taylor. who points OF
minor errors in computation, all of whic
, give the city better bargain" as
calls it.
Hel urges postponement In the constru
r tion of the Chestnut street subway as
measure of economy and Withholding
I contracts except those which would cau
r delay if deferred because of present his
prices.
''If this course is pursued" he says, I'll
city will gain the advantage OF letting u
' principal contracts for it's high-speed sy
TEN at prices then current
Military necessity urges the immedia
building of the South Broad street subwa
To the Philadelphia Navy Yard The stat
= | ment says.
There is enough money available to bui
the entire system If it is expended proper
according to the statement, which, in pal
!, | concludes as follows:
= "This is the bargain which is now ava
|. able, You must either promptly harve
and enjoy the fruits of my labor in yo
, | behalf. or the crop will be destroyed
r. the pessimists and obstructionists
g ."The Philadelphia Rapid Transit Coz
r many has now met all proper demands
4 the people of Philadelphia fairly al