Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-09-06
FORD. BACON & DAVIS URGE
REVISION OF TRANSIT LEASE

joint control over company,s presen,
system.
BY the proposed board of control IN
be established under the present proposa,
the city secures by a practical working
method an equal voice with the companv
in supervision and control of operation or
the company's present system as well as
CT transit facilities furnished by the city
This Is an important advantage obtained
over the 1915 proposal. which contained
no definite effective provision for control
tb) City's right to finance eoupment
The present proposal reserves Tie right
to the city to furnish and finance trarEs
third rail. signals and rolling stock for
u use with TN, the cit cltys transit facilities. AS
pay per cent for this financing and the
city 4 per cent, we have estimated thai
this should result In an average saving
nually "
tc) Saving in abatements.
Under the present proposal the COM
pany will continue for the fortv.vear
period to make all of the annual nav.
ments to the city provided by the iaS7
contract. Under the 1916 proposal tbe
Sory srn snk'ne nssr fund payments were deferred
and tax on excess dividends were elm.
mated entirely. We have estimated that
nls paSv aoa1ement anSar tb OF by the
have amounted to between S43.eS7'0 900
and s45950. 900 less the city's earnings
under the 1890 division in excess Of the
city's interest and sinking fund CHARGES
MAKES SUGGESTIONS
(0 The right Of the city to apply to the
commission for reduction of fares should
be specifically referred to-.
Wnile; as pointed out in our previous
report report; IT VIII probably be necessary in
years OF operation Of the rapid transit
facilities to make charges averaging
higher than fve-cent rate of fare, n,ir
tract show that an average of five cents
during that period would probably pro-
duee fair return to city anu company.
and consequently during the later years
OF the contract 1t may be possible to oper-
ate at less than a five-cent fare.
We are informed that under the exist
has right under the act establishing IL
to fix just and reasonable rates and that
after application for an increase of rates
under Article XIII 1t would have the
right to change tine rates from time to
time by increasing or reducing them. AS
there is a specific provision in the present
the city join in an application to increase
the rates. 1t would seem wise to insert at
the conclusion of the second paragraph of
Article XXllI statement somewhat as
follows:
Nothing herein shall prevent the COM
mission reducing the fares from time
to time or the city making application
to secure n reduction.
(b) The city should have the right to
commute company's payments or appro-
priations from general taxation into re-
duction of fares.
If 1t should be found after the rapid
transit system Is In full operation that
abnormal increases in taxable values have
thereby been produced and that the city
is in a position to devote a portion OF
its tax or other revenues, such as the pay
ments by the company under the 1907
contract to the support of the city bonds
issued for rapid transit construction the
city should have the company's agree