Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-07-19
p. r. T. Bookkeeping
Hides Transit Facts
Continued from Pace One

change in trolley fares could be intro
duccd without the consent of both
parties.
Then came the act creating the State
Public Service Commission. which pro
vided for the filing with il of all Dro-
posed new schedules of trolley fares: il
also provided that thirty days notice
must be given to the commission and the
public of such changes.
These changes were automatically to
60 into effect at the end of thirty DAYS
but only as temporary affair pending
the taking of testimony by the commits
sion and providing no protests had been
filed against them.
The Public Service Commission has
thousands Of similar cases coming be-
fore it. 1t is impossible for it to hear
all such matters within thirty DAYS.
Under the circumstances a temporary
advance of rates is often permitted until
such time as the commission can hear
in full the testimony for and against,
and make permanent ruling.
What the transit company assumed
for its purpose was that this thirty
day preliminary notice in itself per-
mtted it to put into effect its new
schedule. without consent of the city or
the commission. until such times as the
'OllllhlSNlON was W utuT ana
consider the reasons for the advance
in fares.
Here City Stepped In
1t was at this point that the city.
| through its city solicitor. stcppCd in
and directed attention to the fact that
! the city'S contract with the Rapid
Transit Co. was still existent and in
effect.
The company had not. of course. con.
sidcrcd the city. 1t had proposed to 20
ahead and raise fares on the assumption
that all that was necessary was to pub-
lish its new schedule thirty days in
advance and then "Whoop or up."
But the city INTERVIEWED and demanded
that the company show cause for the in
creased rates of fare" Had this not
been done the strange spectacle would
have been presented Of tho Rapid Tran
sit Co. setting itself up as beyond the
power of the city and of the state.
UsuPpation of State Power
1t would have been clear case Of
usurpation OF the police power Of state
ana city by corporation created BY
them. endowed with the power to over.
ride its creators.
The legal point is that in view of the
contract with the city the company could
not, AUTOMATICALLY, proceed. rs it had
planned, to collect the increase prior to
an order of the commission
For boldness Of design this is nor
hapS the capstonc of corporation AFRO
Sance.
But, as | have outlined above, the
company fell down on the lob bcrause
the city practically "canutcd" the game
by thus lar shalt thou go and no
farther. Then followed the taking of
testimony. the revelation Of tho hnok
keeping methods of the company and Tho
failure properly to account on it's books
for the expenditure Of the whulc Of some
$50 OOO, 900 which the cOmpany's avn
experts confess is rather "ncbulous'
item.
Appraisement Would Give Clue
1t does not matter that the books or
the company, according to its cyncrt
accountants. are kept in .crordnnrc
with the rules of the Interstate Com.
merce Commission adopted by the Public
Service Commission or that the hooks
OF the company were regularly auditcd
by the rity'S accountants.
The fact remains that there are amos
tionS involving millions of dollars thar
, have been spent and are unaccountnd
for on the books. and which can only
pe uiNt'N'rru ny dH hppralSCmCnt and
valuation of the cOmpany's property.
That appraiscment and valuation i.
now going on. 1t is an inventory that
, will be completed some time in Sen,
, tembcr, according to the transit OK
( pcrts. Then and not till then will there
be light on the hidden and compliCnte[
things.
2 1t is admitted by the city and h,
) those at all familiar with traction mon
0 agemcnt that Mr.. Mitten has given IN,
q city great transit system, one tina
{ was evolved out of complex tanglc o.
r conflicting interests and cobwcbbrd witt
political ChcanPry. There has been n,
4 disposition, as developed all through th,
s testimony by the citys legal rcprcSrn
t tatives, to minimize Mr. Mittcn's work
e no matter how accomplished.
l. Financial Management at Fault
The trouble is with the comporv'
system of financial management as 70
ycalcd at tho hearings before the Publ
>, Service Commission.
Principal among the contentious n
7, the company has been tho attcmpt f.
n prove to the service commission that th
= company was not earning the pmoun
y of interest on its capital stock to whicl
70 ns Il public service corporation ID is en-
lc titled. In an attempt to prove mi
Al every clever device known 10 esnor
financiers has been resorted to. Ts,