Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-03-17

plished lawyer.
will be able to make use of the Market
street terminal Like Frankforo, with the
great industrial development now taking
place near its terminus. it will doubtless
practically carry itself. 1t will not be
until one year after the opening of the
delivery loop and such portions of the
Broad street line and the Northwest Park
way line as are then ready to make use Of
1t, that the city will be confronted with any
interest payments which even the normal
growth of this system will not be able fully
to care for.
That year will be the fiscal year 1929,
for in this, as in other cases, the interest
charges are capitalized for the first year
OF operation. Before attempting an analy.
sig for that year let us make some inquiry
as to what growth in population and re.
ceipts this city can reasonably expect, for,
after all, the solution of this whole problem
depends entirely on the growth of the city.
1t Is a conservative estimate to say that
street railway receipts increase twice as
fast as the population. From 1900 to 1915
the population of the city increased thirty
two per cent The receipts of the transit
company increased 106 per cent. That is
three times as fast. This rapid transit de-
velopment will help the city grow. If 1t
doesn't it ought never to have been under
taken. The experience of New York and
., ",
while their high-speed lines were being
built, was a growth of from six to six and
three-quarters per cent a year in street
railway receipts.
Now. we can all do a little arithmetic,
though we are not expert accountants Take
pur receipts for the current year-$2S,400,-
900. I have given you the experience of
three cities over the last two decades. Let
each man figure for himself what increase
to expect and what the receipts of this sys-
tenn will be. say. in the year 1922-1923.
which is the first year that the city will
have to meet any interest charges for COLI
struction of Broad street. delivery loop ard
Parkway and northwest lines under the
present plans of the department
IF you adopt two per cent yearly
growth for the city and only four per
cent rate of increase in receipts it will
give you $35,0o0,OoO for the year 1922-1923.
after eliminating the exchange ticket. or
an increase in gross at the end Of six years
Of s6,500.000. If, after allowing for the
increased cost of operating the new lines.
the company is able to save even twenty
five per cent of that gross. increase, it's
surplus for the year will be $4,50O, 90. De-
duct from this 81 100000 to cover interest
an equipment cost which is not now a
charge, and $1500,0O0 for our dividend,
and there will still remain $2,O00.000 sur
plus of which the city will get $500. 900.
or an interest return of four per cent on
$45,00O,00O.
IAN outlook such as this need give the
city no concern. If the company does no
better than a four per cent increase which
means that the city will get no better than
a two per cent increase in population, there
could not possibly in 1923 be deficit of
interest and sinking fund charges for the
city to meet out of its general fund greater
than a million or a million and half
dollars.
"But in the meantime the city will be
accommodating a surplus from the profits
accruing to it during the years from 1919
to 1928; the assessable value of lands at
present undeveloped will be abnormally in
creased by this improvement. thus increas.
ing the general fund from taxation without
any increase in the tax rate, But, gentle
men, in my opinion 1t is ridiculous to think
that this city will not grow more rapidly
in the next ten yers than it has in the past.
in the next ten years than 1t has in the past.
months. greatly increased Navy Yard.
The location of a great plant by the West
inghouse Company. Developments by oil
companies and shipbuildng companies along
the Delaware.
Yesterday told us of an award to Phila-
delpha shipbuilding interests of contracts
for the navy aggregatng over $50, 600, 900.
II these new interests should call for the
employment of 10000 additional workmen,
it would mean IN abnormal increase In
population of 30<,O0 people. and a 900, 900
addition to the population Of the city means
s5.O00,000 increase in the receipts of the
transportation system n year. 1t re-
quires no stretch of the aaglnation to be-
leve that in addition to the normal growth
heretofore experienced such an additional
increase in population may be experienced
by Philadelphia during t"' next six years
IF such should be the case the present
contract would return to the city of Phila-
dclphia every dollar of interest and sink
ing fund charges upon bonds isued to cover
the cost Of construction l may be too
optimistic, but believe me. l am nearer
the truth than those who have gone about
this town bowling calamity.
"Ah But you say how about that
transfer charge? l answer II there Is
no falling of net receipts below $1,500,00C
there can be no transfer charge. So why
discuss it? There isn't a chance of such
a thing unless the Germans blow up the
city. or there is confagration. or earth.
quake or some such calamity. Then you
ask me, why put it in the contract IL you
aren't going to use it? Just for this rea
son:
The p. r. T. needs credit. It has to boz.
row at least $40,000,00O in the next ter
years for equipment of city lines and ex,
tensions and improvements of it's own sys
TEN. To borrow any such sum of money Il
must be able to say to those asked to put Il
up--we are protected to the extent of the
earnings of the joint system against every
possible contingency. This contract is moi
possible without that protection. 1 ask you
in all seriousness, do you not think the cit,
can well afford to give It?
Gentlemen, 1 have finshed---yet ssl
you to indulge me for moment more while
l tell you what really think of the future
of our city. When l hear the pessimistis
talk that this discussion has brought out
Ike my stand with the Pharisee ant
believe In the future OF our city. II Is tn,
natural outlet for the resources OF the rich
est State In the Union. with inexhaustibl,
supplies Of coal at It's door and offering tn,
best labor market In the country. there Il
little wonder that the great manufacturing
concerns are turning to US. All we need 4
proper port development and transit facili
| tie to put PhIladelphiA o. The NAP e y