Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1922-01-07
0ITTEN DEFENDS
] LATEST "L' PLAN
r,enies Company Will include
Cost Of Frankford Line in
( Valuation Proceedings
wEGLEIN GETS LETTER

Several Of Mayor Moorc's objections
~ The latest proposal of the p. r. L.
rompany for operation of the Frank
AVID elevated are answered BY Thomas
r Mittcn in n letter to Richard Veg
hin. president of Council.
Mr. Mitten sent his letter with a
ar,ft of the az" lease and agreement,
~ presented TO Council by Mayor Moore
n March, but so amended as to con-
arm to the latest p. r: T. proposal.
Text Of Mr.. Mitten's Letter
The letter, WHICH was laid before the
Nayor by Mr.. Weglein. reads:
"IIon. Richard Weglen,
"President of City Council.
II am sending you herewith draft Of
,sase and agreement as submitted by
Mayor Moore to City Council March
al 1921. but made to conform with
tbe terms of my letter to you of De-
eemberS31. 1921.
with reference to suggestions con-
mined in Mayor Moore's letter of yes.
terday to City Council, desire to sub
NIT the following:
Getty built Frankford t. will not
be included in p. II. T. valuation !;
only, the exact return paid by 7. II.
4, to the city will be included by =.
r, T. for rate making purposes.
"The cost Of the Frnnkford T., as
described in the draft of lease now be-
fore City Council. upon which T.. II.
r, proposes to pay return to the
ety includes all that the Mayor con-
tends for when he says: The city might
well take the position that cost in
eludes not only the principal of the
bond ISSUE but also the general con-
struction ovcrheads. which are included
by the Rapid Transit Company itself
IN It's valuation testimony before Pub
lie Service Commission
"Bust!eton line will require five one
man cars to be provided by the city.
This line. with free transfers to cle-
yated, n second fare between Cottman
street and BuStlcton. will not earn its
operating costs by many thousands of
dollars. =. r. T. should not be asked
70 pay return upon city's investment
In Busteton line.
Termination OF Lease
"City requirement that Frankford
Il operating, agreement shall auto
natically terminate six months after
final adjudication of =. II. T. valua-
ton seems unnecessary, since valuation
Of P. Il. T. property for rate making
purposes is not likely to be finally de-
termined for from three to five years,
which fact Is. I believe. admitted BY
law departments of both city and COM
pany. II paragraph A in Section 5
we're eliminated, paragraph 3, which
reserves to the city the right. at any
time after five years, to terminate the
operating agreement upon six months
notice, would seem sufficient for all
practical purposes, insuring continu-
Gus operation for five years and leaving
The position Of both parties unchanged,
which is all that should be required.
"P. r. T. proposal prevents in
creased fare. City loses nothing by as
senting to seven cents cash. four tick
cts for twenty five cents fare, as this
cannot be changed. except by the COM
pany. under Pennsylvania law, until
fnal determination Of the value of the
pronsrty used in supplying service.
Regarding earned surplus of =. r.
T. for 1921. would respectfully refer
. my letter of December 81, published
u all daily newspapers, copy herewith
inclosed.
"T. f. MITTEN, President.
=, The letter of December 81 to which
Mr. Mitten refers regarding earned
surplus o. 1921 stated that p. r. r.
aad earned a surplus approximot,nr
H'sV,0OO or Q per cent on its pajd.
IN capital This sum has been msed
nid. '''''' lie
The draft of the lease as presented
Mr. Weglein by the company en-.
bodies no fare provision. following ont
NE feeling that existed at the time the
original lease providing for straight
per cent return to the city upon its
Investment In the road was drafted last
March: At that time the officials agreed
iaat the city could not properly enter
mo any fare agreement, as the Public
service Commission had sole jurisdic-
uCn upon the fare question.
u Is not likely that definite action
xill De taken at Mondays meeting. Ii
Is expected, however. that Councilmen
WI shortly take a definite stand upon
mr.. Mitten'S latest DroDosol