Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1922-01-05

mas Deen pTOVlueu OUT VI tho thvEthbou
carfare under which the road is now
operating. This sum OF $4,000 900
spent in rehabilitation has been used
TO take care Of work which should have
| been done In previous years. The Phila.
delphin Rapid Transit Company has re-
ceiyed, by reason Of the increased fare
authorized by the Public Service Cpm.
mission, and which was granted " a
time when the company was threatened
with bankruptcy, a payment In advance
| for the increased burdens which might
he put upon them, and on the basis OF
Mr.. Mitten's offer will continue to re-
ceive it in the future. IL would not be
going far afeld to regard any possible
loss arising. from the operation OF the
Frankford elevated road as one OF these
burdens.
Must Calculate Cost
"Tenth. Any proposition 70 pay q
rental Of any percentage on the cost
of the line involves the, proper ascsr-
tainment and calculation of this cost.
The city might we'll take tho position
that cost includes not only the princi-
pal Of the bond issue, but also the gem
eral construction overheads, which are
included by the Rapid Transit Com
pany itself in its valuation testimony
before the Public Service Commission.
This would include such items as in.
terest during construction, general ad-
ministration and similar expenses prior
to commencement Of the operation, and
will probably increase the total cost
above the principal Of the bond issue
by five or six million dollars.
Eleventh. The proposal OF Mr..
Mitten calls for the delivery Of one
hundred (100) cars. The city, partly
because of the uncertainty in the mat.
ter Of an agreement with the Rapid
Transit Company. and with the knowl-
edge of the latter, ordered the construc-
ton of fifty (50) cars only. The re-
suit of this stipu lation must be. there.
fore. that the taking over Of the road
would be delayed until fifty (50) more
cars can be built, which will postpone
the consummation Of the contract for at
least six (6) months after its execu-
ton.
Twelfth. The reference In Mr.. Nit
tens letter to the Bustleton line being
delivered fully equipped and ready for
operation also raises the question as
to what is contemplated under this stip-
ulation. because the number of cars
supposed TO bc required for the Bustlc-
ton line Is not stated and the amount
" W VI iS
Here again the city was held up await.
ing an understanding with the Rapid
Transit Company.
"Thirteenth. II will be noticed that
while Mr.. Mittcn's offer calls for the
delivery of the completely equipped
Frankford road, and also the equipped
Bustlcton road, provision for payment
of rental Is based upon percentage Of
the cost of the former road only. II
may be open to question whether the
percentage rental should not be calCu-
lated on the cost of both of these roads.
Mayor Sees Misrepresentation
Fourteenth. There seems to be a
Misrepresentation as to the reason the
city included in the suggested lease
for the automatic termination of the
lease of March 81. 1921. six (6l months
after the final adjudication by the State
Public Service Commission of the valu.
alton proceedings now pending. The
motive for this should be clearly un-
derstood. The city should be prepared,
in case tho final result of the valuation
authorizes the Philadelphia Rapid Tran.
sit Company to draw from the car
riders Il net revenue amply sufficient to
pay its present underlying obligations.
TO claim for itself the full return upon
the city investment IN the consolidated
property as will, in such case, be paid
by the operating company to the pri-
vate investment of tho underlying
companies.
I'm addition to this. if such should
be the result Of the valuation proceed
ings. the city should be III a position to
require the Philadelphia Rapid Tran
sit Company to make with il a contract
looking forward to the acceptance no:
only of the Frankford line but OF the
other units of the City's high speed
system, as and when completed. upon
the same ar equally advantageous terms.
THE foregoing suggestions are made
to the Council in order that some of
the more patent objections to the pro-
posed form of lease may be before your
honorable body. These criticisms, il
they may be called such. have occurred
10 the Mayor as indicating certain weak
spots in the new Mitten proposal.
The Mayor is IN thorough accord
with the plan of operating the Frank
ford II and the Bustlcton surface lines
us parts of unified system OF trans.
portation throughout the entire city, but
he believes that no effort should be
spared at this initial stage to assure
the thorough safeguarding Of the city's
interests. In the meanwhile, as indi-
Gated at the beginning Of this communi-
cation, it Is deemed highly advisable that
the two ordinances now pending before
Council. and the ordinance herewith
transmitted, should be adopted, so that
IL the effort to arrive at just and fair
arrangement with the Philadelphia
Rapid Transit Company be unsucccss-
full, no time will be lost in preparing
for municipal operation.
"As to the ordinance now sent 10 your
honorable body. there Is the further
advantage above referred to, that
whether the operation Of the Frankford
Il is to be municipal or otherwise, i'm
mediate steps must be taken TO provide
thc necessary poWCr'