The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1896-08-19
FRANCHISES ARE TAXED.
Result of the Board of EquaIixa-
TONS Work.

The city assessment rolls were COM
pleted yesterday after a long session of
the board of equalization, which lasted
until O'Clock in the afternoon. There
have been fewer complaints this year
than usual, and the assessments, gem
orally speaking, are believed to be sat
isfactory. The board, as told in the
G 0 b e of Sunday, started out on a
new line, by ordering the taxation of
the franchises of the ST. Paul Gas
Light company and the City Railway
company-innovation which did not
please the officials of the two corpo-
rations in the least. The only opposing
member Of the board was Aid Bigelow,
who believed 1t was neither fairness nor
even good law to tax the franchises.
The valuation of the Gas Light COM
panyS franchise was put at $3.50, 900,
while that of the city railway, which
was at first placed at $500,000 was on
the representation of Thomas Lowry
and M. D. Mum, finally fixed at $780,
900.
The old valuation on which the Gas
Light company paid its tax was $193,-
600, while the new valuation just fixed
is 100000; the old valuation of the City
Railway company was $451 ,275, while
the new valuation is 81, 052, 25z.
Mr.. Livingston, of the Gas Light COM
pany, was present, and made opposi-
ton to the course decided upon by the
committee of the board. He would not,
he said, give any such amount for
franchise running for hundred years.
to say nothing of one running eight or
nine years. The tax on the franchise
was illegal, unfair and unprecedented.
What was to be done by the Board
with all the other lighting companies
and their franchises?
When the case of the City Railway
company came up, Mr.. Num- the at
torney for the company, called the at
tention to the fact that the board, by
insisting on it's action, would be TAX
Ing the $1,000 or SO gross earnings tax,
now paid by the company to the city,
from the city and giving it to the state,
which did not need it. Minneapolis
had no gross earnings tax, and put the
franchise at 100000 imposing a general
tax. The state board Of equalization,
seeing this condition and discrepancy,
would so raise the valuation that the
company would be crippled, and, in
deed, the company since it's organiza-
ton had only been able to pay operat-
ing expenses and fixed charges, and. this
year would come far short of doing
that much.
The gross earnings tax was really
tax on the franchise, and Mr.. Mum
knew that the city council had So in
tended it. The general tax now pro-
posed will eat up the gross earnings
tax of which the city has reaped the
benefit
Thomas Lowry, president of the city
railway, addressing the board, told
them that since the year 1882 the city
railway company had never been able
to pay its fixed charges, and in the
year 1894 had lost $65,000, while last
year the books showed but an even
1@r,1 1A@%xx
lures He would be glad if the city
or some individual would take the com
pany off his hands and pay the fixed
charges and debts. The fact was the
board was proposing to put thes COM
pany into condition where it could
not possibly pay and must make a
fight The company had walked up to
the mark each year with such grace asli
it could command and now it had
reached the limit and could walk no
further Even now the company was
putting in half million dollars into
the streets of ST. Paul, and was doing
it merely to comply with paving condi-.
tons and nothing else.
The board was impressed with what
Mr.. Lowry said, and, on motion, of
Mr.. Krahmer, the valuation was cut
down to 100000, a motion by Mr.. Ness
that it be cut to $250000 being lost
During the discussion of the meas
ures of increase, considerable stress
was laid on the fact that the attorney
general had given his opinion that the
taxation of franchises was legal.
Mr.. Driscoll appeared to protest
against the increase of the
valuation of the Pioneer Press proper
ty on the corner of Fourth and Robert
to the amount of $4,000 or 25 per cent
He understood that the board had been
informed that the building had cost
$S00,0OO, and wished to say that the
statement was false. The building had
in fact cost between 100000 and $780,
coo. The building was about eight
years old and was paying about 2 per
cent on the investment
On motion of Mr.. Wright the value
was fixed at $225, 900 in place of $3.50, 0OO