Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-08-14
CITY-OWNED UTILITIES DE-
CREASE TAXES

NTE EARNESTLY trust that the transit
W lease which the Mayo, is about TO
submit to Councils Is not based on the
idee that the new high.speed system is n
community liability. We have noted an
unfortunate attitude on the part Of public
officials 20 assume that the city is dedi.
likely to grind down the taxpayers for
years to come, and that craftsmanship in
the circumstances consists in passing
the buck" to the =. II. r. 1T matters not
what share OF eventual profits the com
pany may get" runs the argument. "if
It can only be persuaded to run "A big
share Of the initial risk" We have reason
e. believe that the company is not going
70 run any risk whatever but we should
warn citizens generally that there could
be no mistake more fatal to their interests
than an agreement which failed to assure
future axcest profits absolutely to the
city.
The history Of clty-owned utilities in
Philadelphia despite criminal mismanage.
ment Of the gas works for years, is an in.
spring one. The revenue now from tho
gas works is more than one-sixth of the
total revenue from levies On real estate
Moreover, the net receipts increase
yearly. A very large increment may be
expected during 1918, for the city's share
will continue to he twenty cents the thou.
sand under a ninety-fve.cent rete, and
the volume of consumption will be stimu.
lated considerably by the lower gross
price. We assume that the effort If
politicians to transfer the fve.cent re-
duction to the City Treasury IS not
serious
The net profit resulting from the opera.
tion of the water works, unfortunately
ing OF this bureau is purposely compli.
Gated, we are informed with the idea OF
But no one estimates it az less than
81 100000 year.
The important thing, however. for
every citizen to keep firmly fixed in his
mind is this; The gas works and the
water works combined yield the City
Treasury not less than $4,000, 600 year,
approximately fourth as much as the
yield from taxes on real estate Under
capable municipal administration the
gas works would yield twice what they
are yielding. Even a child can under.
stand tnat the leasing company is earn.
ing a profit and a Dig one, on the eighty
cents which it gets for gas, and will earn
q good profit IN the seventy,five cents
which 1t Is going to get after January !.
We have never advocated rapid transit
solely on account of the necessity of the
facility. We have seen in the new system
Q rich source of revenue, certain even.
tually'to lessen the taxpayers load Not
only. under any lease, will the system I'm
nifty years belong debt free to the mu.
nicipality. but long before that IL will be
princely Garner. under even the most
pessimistic forecasts What we are mold.
ing is vast public utility which will
divert transit profits to the Treasury and
thus be rebate on city taxes. II is a
great asset which we are constructing,
not liability. Early deficits, If there are
any. are properly to be charged to capi.
talization.
II is imperative. therefore, for the pub
lie to assure itself that any lease entered
into protects the city's share Of the earn.
ings In the late years OF the lease. We
cannot afford to be stampeded by present.
day pessimists into concessions that will
be fatal to the citys interest twenty years
hence. 1t would not be good policy to
give the company millions later on in re-
turn for few hundreds Of thousands
now.
A test of the equity OF the proposed
lease will be how 1t will operate two
decades from now and not how 1t will
operate the first one or two years of its
sxistepce.