St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1889-09-19

to be hanging around 1t, the GLOBE
Office does not propose to be made
sponsor for him.
THEFRANCHISE COMPROMISE
The compromise effected between
Mr.. LOWRY, the president of the street
railway company, of the one part, and
the joint committee of the chamber of
commerce and the city council, of the
other part, and which will be submitted
to council at the special meeting to-
night for ratification, is probably the
best that could be done under the cir
cumstances. The new ordinance will
fail to embody many provisions that
the public had the right TO expect, and
for which the GLOBE had earnestly con-
tended. Yet we are not disposed to
quarrel over what cannot be helped,
nor to censure where criticism can avail
nothing. If there were anything better
in sight, we would advise the city coun-
ell to hold out for it; but, as this COM
promise seems to embrace all that
is attainable at this time, and as
there is such a pressing necessity
for the extension of our street railway
system, we are inclined to think that
council should act upon the principle
that half loaf is better for starving
man than no loaf at all, and should
adopt the ordinance which will be sub
mitted to that body at its meeting to-
night.
About the only decided advantages
that the city will derive from the pro-
posed ordinance will be the limiting of
the term of the street railway franchise
to fifty years and the right to compel
the building of new lines or the extern
sion of old ones whenever the council
thinks that the interests of the city re-
ouire such improvements. On the other
hand, the city will surrender the two
principles which in public estimation
were the most important to be estab-
liShed-the right to invite competl-
ton in street railway building and
the imposition of tax on the
gross earnings of the street railway
company as the consideration for grant
ing a franchise. 1t is true that the pro-
posed ordinance provides for a tax OF
8 per cent on the gross earnings for the
term of ten years and as much longer
as the city may desire; yet this provis-
ion is so conditioned that the tax on
the gross earnings is merely substitu-
ton for the regular tax. Or, in other
words, the city guarantees to the street
railway company that its total taxes for
the next ten years shall not exceed 3
per cent Of the gross earnings OF the
company. At the present assessed
valuation of the street railway COM
pany's property this will probably in
crease the revenues from that source
from $1,000 to $1,000 annually. Mr..
LOWRY generously valves the right to
occupy certain streets that are men
toned in the ordinance and ObligateS
himself to forthwith extend the street
railway lines on certain other streets
that are likewise mentioned. A trans
fer system is to be adopted, while
horses and steam as motive power are
to be abandoned.
The few concessions made by Mr..
LOWRY will secure for his company a
recognition of the validity of the claim
that theirs was an exclusive franchise,
and hereafter there will be no appre-
hension of competing street railway
lines being built. The great concessions
made by the city will secure for us more
rapid transit and an immediate extern
sion of the street railway system. And
after all, we are not sure that it makes
so much difference tothe public at large
who owns and operates the street rail-
ways. 1t makes but little difference
whether it is one company or dozen
companies who operate the various
lines, so long as we have efficient SerV-
ice. The value of competition is that it
acts as a Stimulant upon the service,
but the trouble in our case has been
that there seems to be no one in posi-
ton to enter the field as competitor
against Mr.. LowRY's company. There
are plenty of persons who want fran
chises for purposes of speculation, yet
there has been no indication that any
one wanted to invest the necessary mill
ions to put a rival line into successful
operation.
If the decision of the courts in the case
now pending should affirm all the rights
that are claimed by the city the council
would be in condition to exact much
better terms of Mr.. LOWRY than he is
now disposed to grant. If, on the other
hand, the courts decide favOrably to Mr..
LowRY's claims, it is possible that gen.
tleman would not be in as accOmmO-
dating mood as he is at present, and
the city might be deprived of the few
benefits he is now inclined to bestOw.
In view of the uncertainty of what the
courts may decide, and for the other
reasons that we have herein suggested,
the GLOBE is of the opinion that the
very best we can do under the circum-
stances is to ratify the compromise.