Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1922-06-20
ONLY PRACTICABLE WAY TO
GET BETTER RAPID TRANSIT
The MItten Plan Of City Ownership and
Company Operation Of New
Lines VIII Work


AVA stockholders of the Philadelphia Rapid
Transit Company yesterday afternoon,
elaborated his plan. outlined some time ago,
for the city to build all future extensions of
rapid transit lines and lease them to his
company TO operate lie is confident that
he can earn enough in the long run to ray
the interest on the cost and TO provide
fund for retiring the bonds when they fall
due. and also to pay dividends on the shares
of the Rapid Transit Company.
The declaration of a dividend Of 3 per cent
on the shares of the company rs the first
installment on a yearly dividend of 6 per
cent promised in December and paid out Of
earnings, indicates that Mr.. Mitten is able
to do what he says he can do. So when he
says that he can pay rental to the city for
new lines. he is not merely talking for effect,
but is speaking with demonstrated knOwl-
edge of what he has already done.
He proposes way to solve the transit
problem and to provide for the growth Of
the city. No better way has yet been sug.
gested
The merit in Mr.. Mittens suggestion that
them to an operating company lies in the
fact that the fixed charges, If the city builds
the lines, will be less than if they are built
by the Rapid Transit Company. The city
can borrow money for per cent. 1t is al
most impossible for any public service COR
poration to borrow any money Mt the present
time. and If it is fortunate enough to find
lender 1t has to pay high rate of interest.
The Pennsylvania Railroad Company had TO
pay per cent on It's last issue of bonds.
Now If the city lays the tracks in the
Roosevelt boulevard at n cost of 81. 600 900
and leases them TO the Rapid Transit Com
pany on terms similar to those on which it
has leased the Frankford line, the fixed
charges would be much less than If the tran
sit company got a franchise and laid the
tracks itself. And the same would be true
of other extensions now under consideration.
The argument Of economy is unanswer.
able. The old practice took no considera-
t!on OF economy. The car riders of the
present arc still paying interest on the cost
Of the old horse cars. and on the cost Of the
horses long since dead and on their feed,
"ii' ~ 10 tNtu VII inc straw lHtt uScu 10
be strewn on the floors of the cars in the
winter TO keep the feet of the passengers
warm. There was no plan Of retiring
bonds once they we're issued Whenever
anything had to be bought new bonds were
issued and added to the obligations Of the
roads, and the riders suffered from poor
service in order that the money they paid In
might go 10 pay the interest on the bonds
and the dividends on the watered stock. The
results have not been satisfactory.
Complete private control of transit faCili.
tics has produced such mess that the best
opinion years ago began to favor the in.
vestment Of public money in car lines. The
voters of this city committed themselves to
1t few years ago when they authorized the
issue Of bonds for carrying out a plan for
system of high. speed lines If it is right
for the city to build elevated lines and sub.
ways and surface lines to extend the elevated
lines. 1t is just as right for it to build other
surface lines to provide transportation where
1t is needed
The city will have to build them If we are
TO have them ready to accommodate the traf.
fic of the coming fair. for the Rap!d Transit
Company is in no position to 60 into the
open market to get the money
Mr.. Mitten would like tho -ity to huv tbe
existing lines and lease them to him on the
basis OF 5 per cent of their cost. But il is
not necessary at present to consider this
question. Indeed, it may not be wise 10
consider 1t AT all until the needed nytensions
are built and until they have begun 70 eorr
enough under the leases to carry the interest
and amortization funds Then the bonds
issued will cease to run against tho hmi,ed
debt Of the city and tho proper treatment Of
the older lines can be taken up in the light
Of the lessons Of the experiment with tho
newer lines.
The thing to do now IS to agree on def :.
mite program Of extension into the distr,cts
not now we'll served, and then to make ar g.
rangements for building the new lines with
the least possible delay.
The Roosevelt Boulevard hne will r,,ur
ally come first, for the need Of that is pen.
orally admitted, There is already a consid .
cradle population in the district tbroucb
which the boulevard runs, and there are large
business establishments there which need
service. But the boulevard is beautlfu,
thoroughfaro which can be enjoyed at nres
cnt only by the owners Of motor vebices
As soon as a street car line begins to oner.
ate along 1t there will be deyeIoped n ,or,o
amount Of pleasure riding by people who
wish 10 get into the open country. In otber
cities such boulevards are made accessible
to the mass of the people in this woy
There is no good reason why the peopIe ~
this city should not enjoy the same privi.
leses.
MARS PASSES BY