Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-09-27

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than In the grocery business. The city,
however, has constructed and does own
lines, as In the case Of the incomplcted
Frankford IL and Bustleton- Byberry
lines, and ss to them tentative. under
standing has been reached by this ad-
ministration that the Philadelphia
Rapid Transit Co. will lease and oper-
ate them on the Mayors terms, to wit
a per cent return on the taxpayers
capital outlay. Thus far, about S12,-
600 900 Of a total Of $4,000, 900 au-
thorized, but not borrowed, has been
spent by the city on so-called high"
speed lines.
No Work Completed
For this expenditure running over
eight. years, we have an incompletedi
Frankford a." the incompleted
Bustleton. Byberry surface lines and
several subway excavations under the
City Hall and on Arch street and else.
where. The present Mayor has several
times publicly proclaimed that the
Frankford H., estimates Of cost for the
completion and equipment of which
have twice been increased during the
last eight months, should be completed
and equipped Immediately, so that an
operator may eb found and service OBJ
tained. Instructions to the city transit
department have been to 20 ahead with
this job and It is being pushed at great
cost.
Further experiments in municipal
high speed lines at the expense of the
dwindling $4,000, 900, authorized but
not borrowed. can wait until bonds are
more saleable and conract costs more
reasonable than they are now, but es-
pecially until 1t Is known whether the
| city must deal with the Rapid Transit
Co. or the underlying companies, OF
must finally 80 into the railroad bust
ness itself. II the Philadeiphia Rapio
Transit Co. is not able to sustain it.
sell. the problem Of the city's 80 -cs'led
! high speed lines will be more acute than
| 1t Is now. Much, therefore, depends
upon the fate of the Philadelphia Rapid
Transit Co. -.
l. Failure Is Alternative
1t is freely stated that the company
must have more revenue before Decem :
Der or face failure.
IL Is apparent that the company can
meet its deficiencies and carry on, only
by having credit upon which to borrow
which it\ seems not to have; or BY
reducing wages or rentals or by charg :
ing more for the service it renders. II
is admitted that the company has M
! credit 1t cannot borrow money. II
cannot, therefore, make the extensions
to the service which the city has asked
1t to make. The company has. how
ever. retained the good will Of its thou :
sands OF employees by increasing wages
to meet the increasing costs of living
and 1t is unthinkable that faith should
not be kept with these employees with
respect to their wages while living costs
remain as high as they are. o.. "
Rentals Issue Must Wait
AS to rentals paid to the underlying
companies, or an increase In fares for
services rendered the public, either OF
both Of these questions must await the
determination of the Public Service
Commission, based on valuation oi
the property Of the Philadelphia Rapid
Transit Co. and the underlying com
panies. '.'.
"The city has an interest in the sue
cessful operation of the Philadelphia
Rapid Transit Co. because Of the 1907
agreement. which, whether wisely oil
unwisely entered into by the city, was
justified by ordinance aud still prevails
! That agreement, made prior to the
creation Of the Public Service Commits
sion, provided that the present rates
of fare may be changed from time tc
time. but only with the consent of both
parties hereto
cour.,I n,,st noc,d.
'''' '''A "'''
Although informed as a director OF
the necessities of the company. re.
peat, Il is for Council first to decide
whether the ordinance seeking m change