Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-07-19

keeping technically within the law on
| the subject
| As to the underlying companies, the
! rentals. interests and taxes paid to and
for their accounts have been the mill
tone around the neck Of the company.
This is admitted by the company itself ;
but no attempts have been made by II
to relieve itself Of this incubus, beyond
presentation to the government by its
legal counsel in connection with a plea
for sa rcadjustment of wartime taxa :
| ton.
Fair Raise Won't Halt Probe
Should the Public Service Commits
sion decide to permit the transit com
pany to increase its fares as prayed
for. the fact will not halt the progress
of further investigation as to the affairs
of the company.
II the commission should allow the
| temporary increase Of fares In this case.
IL will be in the face Of every precedent
created by IL. and showing a considera :
| tion TO the transit company which has
not been accorded any similar corpora
| tion In the commonwealth.
In reviewing other cases. the com =
missioners have never. am reliably in
| formed, allowed even temporary in
crease Of fares without some showing
of real values in the property.
In this case the company seeks to. OBJ
tain the right to increase fares without
any attempt on its part to prove prop
crty value as stated.
Must BE Showdown Ultimately
There has TO be ultimately general
showdown of the company's affairs.
| The inventory now being made will be
closely scanned by the cty's legal rep
resentatives. There is no question that
certain Of its claims will be disputed,
and ultimately. should the Public Serv-
ice Commission make temporary in
crease in fares permanent. the case will
be fought out in the Supreme Court.
1t may be- years before the final adj
judcation of the matter is reached. and
all the dcadwood and political debris
heapcd on the city's transit system
swept away.
In the meantime the question Of GER
tificates of repayment for excess fare
paid by the people must be decided.
II temporary advance in fare is per-
mittcd. will the company be compelled
to issue to each passenger n certificate,
or receipt, providing for the repayment
of the excess charge should the tenn
porary advance be not made perma-
nCnt?
For whatever decision the service
commission arrives at. it is only tenn
porary and to remain in force till
testimony covering every phase of the
muddlc has been heard.
Repayment Plan Not Considered
This certificate Of repayment was not
considered by the company apparently
in its rush to put the new schedule
of fares into effect at once.
In the event of a refusal by the com
mission to grant the temporary ad
vance in fares. the company unques-
tionably will be left in a very unde-
sirabc and unrnviable position. The
company will face a deficit. assume the
burden of inherited mismanagemcnt Of
those who have gone before.
What would be the solution?
Only one is apparent now. II the
p. r. I. will join in an action with
the city as co plaintiff before the Public
Scrice Commission in an endeavor to
break the underlying leases, the
stranglehold on its corporate existence.
way would be opened for relief.
The company is IN the position Of a
tenant protesting to a landlord. If
the tenant joins with the city in fight
ing an injustice imposed by the land
lord. or the underlying companies, it
will be an evidence of good faith to-
ward the public and will carry great
hope Of success.
But have the Rapid Transit officials
the disposition and nerve to take this
step?
The drainage system of the under
lying companies, already referred to, is
exhausting the Rapid Transit Co. s
resources and imposing a burden on
trolley riders. There are five Of these
drains:
First. The Transit Co. is paying divi-
dcnds on their stock averaging 49,
per cent per annum.
Second. 1t is paying interests on their
bonds.
Third. 1t pays all their taxes. includ-
ing dividend and real estate taxes paid
into the City Treasury.
Fourth. Pays all their obligations and
such costs of paving, now amounting
to $3.50, 900 year.
Fifth. Also. all the costs of main
tanning their corporate existence. such
as Office rent, salaries of officials, etc
The grand total exceeds $4,000, 900
a year.