Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-09-21

it may be usable for rate e.making pur-
poses for many months to come.
Foresees $1,000. 900 Deficit
Meantime, p. X. T. must have more
money. or go to the wall. p; Il. T,s
sPsT%tas sBsw. dsst mp s sss &aa' ep gp0ss he
month Of August. An. accumulated
deficit has been built up by months, in
varying amounts, until the deficit now
represents 81 ,151 ,62S.77 for the eight
months ended August 81.
The operating deficit for the next
twelve months will exceed $4,000, 900.
against which the straight fve-cent
fare, without transfers or exchanges, is
estimated to bring In about S3oo,ooo
per month.
1.-THE need Of increased earnings Is
two fold; the amount required to pay
actual operating costs being necessary
In order that the cars may be kept run
ming; the amount to pay the agreed D
per cent dividend on p. II. T. stock Is
required in order that p. r. Il. credit
be sufficiently established to make its
guarantee on bonds issued for desired
extensions of sufficient value to make
them salable.
Under the agreement Of 1907 it was
evidently intended that any change In
agreed to by the city. r,
THE true test Of a contract, after
Its having been in effect for thirteen
years, and the fairness Of its terms, Is
best determined by a review OF the
benefits actually received by each Of
the parties.
"The 1907 agreement was accepted by
the press and public representative,
sfter much publicity and investigation,
as being the most perfect solution then
possible.
"The P. r.. r. stakeholder had al
ready paid in $4,000, 900. and was
induced by the making of the 1907
agreement to pay In the remaining $12.-
600, 900 Of the $50, 900 900 r. II. T.
capital stock, Ii the hope and expec-
tation that he would receive 6 per cent
per annum on both the SIS, 900 900 Of
money which he had formerly paid in.
as well as 9 per cent per annum on the
S12,0QO,OOO Of new money which he
was required to pay in under the terms
Of the 1907 agreement.
Does Not Get Returns
What has been the result to this
hopeful p. Il. T. stockholder? As
against his having received 9 per cent
per arnum on the whole $50 900 900 Of
paid-in capital, as he had been led to
believe, and which would in total repr
resent $4,000 900, he has actually re-
ceived In dividends but 5,S47 900.
"P. X. IT, stock Is, at present mar
ket, worth but S14 per share, or an ag-
gregate amount Of but SIS, 400 900. as
against its paid in capital Of $50, 900, =
900.
1.-THE p. r. T. stockholder has never
received any return upon his $4,000, =
900 paid in prior to 1907, and has re-
ceived an average Of 3 per cent per
under the terms of the 1907 agreement.
The entire $50, 900, 900 of capital stock,
II sold on today's market, would bring
but So, 400, 900. or 900, 900 less than
the money paid In by the stockholder
after the making of the 1907 agreement
'What has been the result to the city
Of Philadelphia during this same period
since 1907?
Better Service at Less Cost
"The city secured the completion of the
Market street elevated by which Wes,
Philadelphia taxable values were in
creased considerably over 800. .000. 900
This high speed line Is over $5. 900, ,00C
short Of having earned @ per cent pei
annum upon It's actual cost, but IL has
been, and Is still supplying. combined
elevated and surface car ride for fivc
cents, which cannot be continued. and
which compares with other cities al
follows: Chicago, eighteen cents; New
York and Brooklyn, ten cents; in tn,
latter two Of which, however. millions
of dollars Of city money are invested il
new subways, and upon which there il
no financial return.
40 philadelphia has today better stree
car service at less price than any
other city.
''P. r. T. stands alone in supplying
uninterrupted street car service durinl
the war, aud has given Philadelphia
freedom from strikes and labor dis
turbances during the entire nine yeal
period of present management.
% 1t has been urged that city's con
sent to increased revenue should b,
withheld until valuation is determined
or until something could be done to re.
duce the rentals to underlying com
panies.
"If the city now makes the mistak,