Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-08-20
'THE PUBLIC BE DAMNED

"A bankrupt, which owes its stockhold
ers $4,000 900 in unpaid dividends, which
Is committed by contract to the paymen
/. OF annual dividends amounting to mil
lions on the securities Of underlying com
panies which were prodigal in their issue,
Of watered stock and obtained their fran
chises, in many cases, by bribery and
fraud, suddenly finds that by the exercise
! Of the strictest economy, in a period OF
unparalleled prosperity, It is able to show
for two successive years earnings sum
cient to meet its obligations to stock
holders 1t is confronted, however. with
city plan for high.speed, modern transit
lines which will parallel its own impor.
fant routes and take the cream of the
business. 1t is apparent even to novice
that Independent operation of the new
system will drive the company into bank
ruptcy, in which case the whole system
Of leases and subleases would topple over
and the ruins be for sale to any bidder.
Its competitor, the city. however does
not desire to force this situation. 1t pre-
fers to cooperate with the company, II
such cooperation can be obtained under
reasonable terms.
What is meant by cooperation? Only
one thing, so far as the general public
is concerned, namely, the operation Of
the two systems as one in order to assure
q ride from any part of Philadelphia to
any other part for five cents. Unless
cooperation gives that privilege. plainly
only insane men would turn over to such
4 company as the p r. T. the enormously
expensive and comprehensive system the
city is about to build. If people have to
pay for transfers, or higher prices for
straight rides, all reason for cooperation
disappears. Most assuredly so, unless the
company is to share In the cost Of pro.
viding the new system, pouring millions
Of its own into the enterprise But along
come the city's negotiators and, in effect,
they say: I'VE will not permit you to put
any substantial sum of money into the
undertaking. The city will build the SUBJ
ways and elevated lines; 1t will in the main
equip them; 1t will leave nothing for you
to do but operate them. Moreover, we
want you to be sure of nice profit for
90 doing. So we are going to Join with
you in asking permission to raise the
fares and we are going to let you hold on
to the eight-cent exchange ticket, although
1t is even now illegal, and we are going to
see to 1t that the public pays enough to
assure your ability to meet all the fixed
charges to your underlying companies,
and we are going to fix 1t so that you
will run no financial risk whatever and
will have a monopoly of passenger traffio
for half a century in Philadelphia. These
things we are going to do, IL you viii
only agree to operate the two systems.
Moreover, as further inducement, wen
provide board, which you shall control,
to stand between you and popular indig.
nation" The company's agents solemnly
consent. even II they do smile knowingly
among their friends in private. They
know a gold mine when they see one.
TT is perfectly obvious, of course that
high-speed lines are profitable lines. The
p. r. T. never let's the public know the
tremendous earnings of the present sub
way. Were the new lines. therefore, oper-
ated by the municipality, there being no
dividends to pay on watered stock and the
service being vastly superior to that Of
fered by the company, the income would
be decidedly gratifying. Not only so, but
there would be no huge dividends for the
city TO pay to underlying companies. And
further. legislation and the Public Sery.
ice COMMISSION would compel transfers
under rate certainly as low as is con-
templated now under the lease. We do
not advocate independent operation, for
obvious reasons buta consideration of its
possibilities discloses how advantageous
70 the company the proposed lease is.
weeks ago the company learned
~ that Mr.. Twining's pet hobby was to
Faise fares and sell tickets at the rate of
leyentssn for one dollar. as was pointed
~ by ~ EvsNNo LrDora sditorialiy
xt'heeaps clear to the eom-