Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1922-01-17
MAYOR CALLSP.R.T.
l' OFFER TOO Low
Declares Fiscal Report Will
Prove Ability to Pay City
Higher Rental

that it cannot offer n $3.50 ,00O-a year
rental for the city built Frankford ele'
vated until the sixth year of operation
'ls unsupported by facts Mayor
Moore wrote today TO Richard Wcglein,
president Of Council.
The Mayor suggested TINT tn" COM
vany disclose all the facts regarding its
increased earnings rroE: the present
six and onc-Quartcr. cent ticket or
scven-rent cash fare. Those facts
should be obtained. he said. before an
operating agreement is reached.
Thomas L. Mittcn. president Of the
+. r. T., has offered 1 per cent re-
turn on the c!ty's $4,000 000 invest.
ment. or $50 COO. for the first wear of
operation This X to be increased l per
cent yearly until ! per cent payment
Is made ia the sixth year.
Rental Question Dodged
The rental Gucstion vas not mon.
toned in the petition which Nr. Veg
lcin and Mr.. Mittcn forwarded ycsi"r'
day 10 the Public Service Commission.
The proposals set forth in the petition
approval clearing the way tor the next
move toward an overat!ng agreement.
Tho Mayor left last night for Florida.
after debating tn" letter 10 Mr.. Veg
'ein which was made public TODAY.
Tho Mayor has been. and is, in
thorough accord with the policy of oper-
ating The Frankford elevated rs part
of unified transit system in Phtladcl-
phia." he wrote. "Iie and his usso-
ciotcs undertook 10 bring this about last
spring and reached with The =. Y. 7.
Co. what wns then believed TO be Il fair
operating agreement.
THAT agreement having failed Of ap-
proyal. the Mayor feels that in the full
/ fllment OF his trust to the people of
/ Phi 'adrlphia he Is bound to continue his
! efforts to the end that the interests OF
tho city be properly preserved In any
agreement made with the +. Il. T.
/ Company.
Mayor States His Position
'Tho PRINCIPAL difference between the
"lty and thc company in the present Nc.
gotiattons IS the amount Of return Of
fcred by the company for the c!ty's
,,rorcrtv. The Mayor has taken TIE
rosit;on THAT ne IS willing 10 accept j
/ per cent on the cost of the property rs n
fair return. even though in doing SO
there will b. Il deficit in interest and
I siuktng funl charges which tho city
would have to make up out OF its gen
craI fund.
The company. in its letter to Coun
! Gil, though expressing its Willingness tC
nay > rer cent later on. offers n sun
! substantially less for the first five years
with the statement that Il is unable I,
increase this Uncr.
This later statement. however. +
unsupported BY facts. The relations
between the city and the company unde
the contract Of 1907 are such thot the.
should ;rCat with each other in tn
fullest good faith and with the mos
complete disclosure Of facts and condi
tionS.
Wants All Facts Made Known
"Furthermorc, in return for the cmer
gency increase of fare to seven cent
now enjoyed byy the company, tn
company owes il 10 the city to give til
fullest analysis of its ability 20 pay, /
order 70 justify any sum it seeks 10 haY
the city accept for so valuable a prop
erty as the Frankford elevated railway
= "Cho Mayor Is Informed by the u!
. rector OF City Transit that the uperaLiO
r Of the present increased rate ot far
[ such that the company earned durir
; the last year and will earn during II
E prcscn, year substantial surplus"
= which could b" devoted TO th" franS
ford elevated rental without undue dC
= Drivatlon Of its stockholders.
n Tho Mayor, therefore, takes the pc
c sition that the company should make
n complel" disclosure Of al these fac
q before any agreement Is reached whiC