Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-05-18

inatory exchange tickets except In the de-
livery districts between Arch and Walnut
streets and the two rivers. Pending
establishment Of free transfers in this
district, new station at Nineteenth and
Market streets will accommodate pas
sengers
Second. The company furnishes the
equipment and supplies for the citys
system and is allowed not more than
per cent interest out OF the earnings.
Third Agreement to establish free
transfers between intersectug lines will
enable passengers to travel In n forward
direction throughout the city for one
fare; there is nc, limit TO transfers in a
forward direction except that no transfer
shall he issued. on transfer between
surface lines unless high-speed journey
intervenes or the route iS between North
or South Philadelphia and West Phila-
delphia via the new Nineteenth street sta
tion.
Fourth The agreement Of the COM
pany to surrender to the city nine-tenths
OF its net income in excess Of per cent
on its capital stock would for the cur
rent fiscal year. have yielded the city
Sl1Ol 500. or S4i7.60 in excess OF what
1t now receives from the company, and
the travelling public. through abolition OF
the exchange ticket, have saved $500 900.
Fifth. The company will operate the
citys system pt cost.
Sixth Successful operation Of The city's
high-speed system is assured through the
provision that the city may take over the
companys property for a sum equal to
the company's stock par value $3.50. .O0O,-
OOO) at any time during the firty-year
contracts term because the Companys
system and the City's system must be
co-ordinated, the successful operation Of
the one depending upon the successful
operation Of the other.
Seventh. PAYMENTS rp1uired undpr the
1907 contract for the amortization Ut
the 7. X. r COmpany's stock are sus-
| pended for five years, such payments as
| have been made heretofore remain in the
| tund This amortization fund, and the
new amortization fund established to
| amortze the equipment cost. both become
| available to the city TO be used by 1t In
| acquiring and paying for the stock Of
! the T. Il. Z. Company and the equipment
! supplied by the =. Il. r Company under
the terms OF the agreement
on July /, next. there will he an &C
emulation OF SG5S, ,OOO-rcprescnted b,
cash and municipal bonds--in the fun
| which has been established, and to whiCl
| regular contributions are made out of tn
| Company's earnings to enable the city 1
purchase the stock Of the Philadelphia
! Rapid Transit Company at par In 1857.
The investments in this fund are earn
ing less than per cent annually on thei
value.
The 1907 contract expressly Y provides tha
this fund may be invested from time (
time in the stock Of the Philadelphia Rapi
Transit Company. That stock is today pay
ing per cent upon its par value, namely
$50 per share, and 1t is selling at abou
$50 per share
More than 10000 shares Of this stock
| now yielding an income Of $5O,000 a yeal
or over per cent on its present marke
value, could now he bought at about SO
per share with the money in this amortiza
| ton fund which is being accumulated {
buy this very stock at $50 per share later.
This fund should, therefore, be investe
in =. r. =. Company's stock at preser
price without delay.
Eighth The company agrees to cane,
accrued dividends and also limits futur
dividends on its stock to . per cent, plu
tenth Of the remaining profits This car
cells the provision Of the 1907 ContraC
| whereby per cent per annum accumulate
dividends on the company stock goes
the stockholders before the city shares
the profits. These accumulated dividend
| and the current annual return of per Gel
amounted to Sl6,500.00 on July l, 1916.
; Tenth The company is bound to eNter
| its surface system when and where e
tensions are reasonably required.
Tenth. The benefits which the Compar
receives by the contract--assurance Of
regular per cent return on its stot
| and cancellation of thes annual pa
, ! ments heretofore requred-hrmly esta
= fishes the credit Of the company and e
ables il to borrow the necessary money
equip the City's system and extend II. II
city has the right to increase the fare
e making unnecessary the proposal to esta
. lish seven-cent fare fer the high-spe
l. | lines Should the city ever he ConfrOnt
Q by the extraordinary conditions Csuch
g pestlence. fire or earthquake) that caus
e this stipulation for an increase, it will
= possible to offset the deficit by a peni
transfer or otherwise. The company is
l. strong financially. because Of the develo
h ment of Philadelphia, that it was enabl
to make the city the extremely favorat
proposition,