Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-04-27

city should not again pay for II upon the
expiration Of the contract. II should, OF
course, pay for the difference between
the sinking fund and the cost Of the equip
ment, but the contract does not provide
that the city should pay for such balances,
or that II should take the sinking fund and
pay for the equipment, but Il provides that
II should pay the company for the equip
ment, even though the loans for equipment
have been amortized out of the net earn
ings.
EXCHANGE TICKET PROBLEM
The fourth objection is to the provi-
sion which enables the company, after II
has acquired a release from the payment Of
s31 100000 to the city under the terms Of
the contract Of 1907, which release Is ex-
pressed to be the consideration for the
abolition of an exchange fare, to reserve
the right to retain certain exchanges. and
while IL agrees to abolish the other ex-
changes II reserves the right to re-estab-
lish them not to the extent OF eight cents
only for an exchange ticket, but to any
amount which the company may find nee
essary to make It's per cent upon It's cap
ital stock. The people have for years. with
out respect of the building Of the high
speed lines, sought fiat fve-cent fare
with transfers on all surface lines. The
recent reports of the company have shown
such rapid increase In earnings as to assure
an income Of from So 100000 to $4,000, 600
in the current year,
ut takes but $1,000 900 to pay the in
terest upon the capital stock of the COM
pany. The exchange tickets produce about
100000 to the company. The company in
seeking this contract lays great stress
upon the fact that II is at present earning
more than per cent. and that it will in
the future, az should be reasonably ex-
pected earn more. There would therefore
seem TO be no reason for reserving a right
to charge any exchange rate or to restore
the exchange rate II having once been
abolished. and there certainly should be no
right to impose an exchange rate In excess
of any exchange rate now in existence.
TAXATION AND FARE RATES
THE fifth and most important objection
is one which concerns taxation. The city
might he perfectly willing to engage an
operator of its hlgh-speed lines upon such
terms as would yield 1t no profit. but would
enable 1t to pay its fixed charges for the
construction OF its lines. But. 1t has been
estimated by skilled and competent authori-
ties, there will be an annual deficit of per-
haps S5,00O00O during a period of years OF
the operation Of the roads. The city cannot
enter into a contract regardless of how II
is going to raise whatever deficit there is.
IL there should be a deficit. The real ques-
ton is not what the deficit amounts to. but
whether the city has reserved a means OF
paying the deficit. OF course IL has the
means Of paying IL by taxation of real
estate. which. should the deficit be $4,000
600 would mean an additional thirty cents
upon the tax rate
I'VE are approaching a time when we
must expect "a he heavily taxed by the ma
tional Government We are a manufactur-
ing city among other things because we
have low taxation. To increase our taxa
ton of real estate by more than one-fourth
Of the present taxation would mean blow
Coz ,,ri,, Dit, Nd
would cause just criticism on the part of
the owner of real estate, who, regardless
of the use Of the high-speed lines to him.
would be paying for the fare of the rider.
No provision is made in the contract where
by the city can raise its deficit in any other
way than by taxation Of real estate. hnd
that the thought Is very current that the
man who rides should pay the cost of his
ride and that there should be provision
in the contract whereby the city, without
paying to the company as prohts any part
Of the sum raised in the endeavor to meet
the deficit should be able TO charge such
fare to the rider for the use of the high
speed lines as will meet this deficit and will
not bring its liquidation upon the property
holder
Thus, while there is no news the very
wise advice which appeared in the public
press some time ago that the matter should
he thoroughly discussed has brought out
the above principal objections to the pro-
posed contract
TAYLOR VIEW APPROVED
The resolution adopted by the Chestnut
street Business Mems Association indorsns
| the position of former Director Taylor or
| the lease follows:
BE II resolved. That the board of di
rectors of the Chestnut Street Bushes!
Mems Association does hereby report to III
| membership. and TO the public. that tn
| terms and provisions of the proposal ten
! dered by the Philadelphia Rapid Transi
| Company for the equipment and operation
| Of the city's high.speed system appear am
| ply to provide for the protection Of the pub
| lie interests, and assure TO the city the es
| tablishment of a unified transportation sys
! TEN properly designed and arranged 4
serve the public arequate efficiently AM
economically, upon free transfer basi
| throughout the city in forward direc
| ton. with the eight-cent exchange ticket
| eliminated That the terms of the afore
| said proposal appear to secure to the cit
appropriate and adequate concessions whic
| have been obtained from the Philadelphia
! Rapid Transit Company, which will resul
| in the establishment and operation of tn
city's high-speed system. on basis which