Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-06-01

insignihcent as compared with the COM
pany. The city is opposed 10 any PROPOSE
tion to pay the company a fixed and cumu-
lative guaranteed dividend.
LEASE ON DIFFERENT LINES
III lease is to be drawn and offered Ia
the Philadelphia Rapid Transit Company
i should be drawn on radically different
lines. In order that the report which
submitted on March 20, 1917. might not
be confined to merely destructive criticism
! embodied in that report--on pages is and
19-eleven essential features upon which
a fair contract between the city and the
Philadelphia Rapid Transit Company may
be bhsed. These features are as follows:
First. The company shall il possible
adopt program which will ultimately
effect a readjustment OF its finances by
refunding or other approved means. and
that the city shall readjust 'itg program
OF conNttlgtion 80. as 10 bring the esti-
mateu defrSr within reasonable limits
Second The city shall not guarantee
the eompany's system as 10 capitaliza-
uop. management or operating results
msany way either directly or indirectly
Three. As the gross and net earnings
OF both the city's and the company's sys-
tens iuctuate from year 10 year and de-
pend upon factors beyond the cty's con-
troll, any payment to the company for its
cooperation should not be based on gross.
net, or diverted earnings Of either sys-
TEN. but should be, II at all, a payment
based on the extent TO which the COM
pany really co-operates in the citys pro-
gram, and in determining It's amount the
city shall recognize the company's obliga-
tion 70 be responsible for the result Of
capital investment in the rapid transit
facilities at normal rate
Fourth. The payment or fee TO the
company for acting as manager or oper-
= - snaW ag..
the amount which would be paid for the
same service under independent opera
ton. and preferably graded and propor-
tional 70 the relative. gross earnings Of
the two systems
Fifth The citys system shall be oper-
ated for the citys benefit. Physically the
company's and the city's systems may be
operated as a unit, but financially they
must be kept separate, each system TO
count as it's earnings whatever cash it
receives on It's hnes-it may be assumed.
that the transfer will balance each other.
CITY-owNED SYSTEM
Sixth. The city may equip as well as
build It's own high-speed lines thus own
ing outright its own system complete
This provision is not a necessity II the
company viii furnish the equipment on
fair terms: but II VIII obviate any neces-
atty for the company TO make use OF the
citys guarantee on It's operating results
IN order to finance the equipment OF the
cltYs lines. II also makes It possible for
the ely to take over a completely
equipped system II II should decide TO re-
ceppre les own system at any time.
Seventh. The company's system OF sur
face lines shall be inRnced by the COM
pauy and the company must not be per-
mIlltd 10 use the city's credit either
QIrottIy or Indirectly; but must stand on
IL. otrn faaf and Stand or fall as a reauIf
81 rs own management and acts
Eighth The city must be left free 70
Regulate the cQmpany's service under the
Public Service Commisslon
NInt1 Change of fare Of charge for
Ifanef1I4 etc. ~ ~ left to the Public
<If|t| Ht[ .n|<Ilon. but no Increase ls 10
Tor |0 oirpenyt benefit until the