The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1896-12-15
TAXING THE TELEPHONES.
Company and City officials Talk 1t
Over,

Company and City officials Talk 1t
Over.
City Comptroller McCardy's COM
| munlcation to the common council call
! ing attention to the fact that the
| Northwestern Telephone company pays
! no direct tax to the city for it's valuable
| FRANCHISE, was taken up by the assem-
/ Day committee on streets yesterday af-
ternoon c. P. Wainman, of Mime
| apoiis, the general superintendent of
! the company, was present and so was
| Comptroller dMcCardy. An interesting
conference ensued
MI. McCardy first called attention to
! MS recommendation that the contracts
/ with the telephone company be let for
| one year only, in accordance with the
| law which prohibits the city from en-
! terlng into contract for any longer
| PERIOD. Mr.. gMcCardy referred to the
decision on this point rendered by
Judge Otis in the Seeger lighting con-
tract, in which the court held that con-
tracts on the part of the city that do
not terminate within one year or less.
are invalid. Mr.. McCardy was aware
/ tnat the telephone company claimed
| that its contracts with the city could
! be terminated upon the notice Of either
| party. But in order that the city and
! the telephone company might under
stand each other in the future, Mr.
McCardy declared that the city should
! not acknowledge the existence Of any
contract with the telephone company
AFTER the expiration Of the present
year.
Cen supt. Wainman replied that the
! company was perfectly willing to make
new contracts every year. Heretofore
! they had simply been continued to
avoid the trouble of re-executing them
| once q year.
Then Mr.. McCardy hauled the tele-
phone company over the Goals in this
fashion:
THE Northwestern Telephone com
| pany has a valuable franchise II Is
! pulling out a, large amount of money
annually and is giving the city moth
Ing 1n.return. It simply contributes a
sn1ali amount a year-something like
! $1Z,UGV-tO the state. l submit this ia
not fair to the taxpayers, and that the
telephone company should contribute
! a small amount to the government AT
! the rate 1t is going now, it will pull
! out IN two years an amount of money
III excess OF its assessed valuation I
am aware that the company will plead
tEat the law eXempts it from taxation.
excepting its annual payment to the
/ state. l have, therefore, called atteD-
ton to the ruling Of the United States
supreme court, holding that a tele-
| phone company's poles are taxable by
the city in which they are located
IN reply superintendent Wainmain
SAID first that there was no property
IN the city of st. Paul assessed as
close to its actual cost of $500 900 as
the Northwestern Telephone company.
Comptroller McCardy-I don't know
81 any business so profitable according
to the amount invested as yours.
Supt Walnman-If you will pardon
me, Mr.. McCardy, I venture to say you
don on know anything about it.
Inc facts brought out at this stage
| that OCT af.y1 Tyo1o
| company had 1890 phones in the state
or Minnesota, that the valuation of ,ts
entire state plant was $500, 900, that it
pa1o $l,5OO to the state in 1895 on a
valuation of $322,750, and will pay Sill
! 5OO IN 1896 on the valuation of $500. 600
| Comptroller McCardy said that sixty
miles OF streets in this city We're occu-
pled by the company's poles.
| Supt. Walnmann then proceeded to
| Gefend his company. He affirmed that
It paid the city about $4,000 year in
| clrectly, besides expanding here at least
$4,000 year out of its gross receipts,
amounting to $50, 900. It furnished the
| city twenty telephones free of charge
and twenty more at half rates, which
meant gift of 81, 200 a year, and more
oyer o 1T furnished and maintained all
the conduits used by the fire and
police departments, and city telephones,
which brought the total gift UP to
| $4,000. Supt. Wainman said that the
1 company did not feel the slightest anx-
1ety as to the right of the city to tax
It's poles. The decision Of the United
| states supreme court affected only a
] special case. It's franchise provided
what the company should pay, and it
was hardly probable that the city could
alter its terms.
Supt. Wainman declared that the
company paid the state per cent tax
on the valuation of it's plant, which
! amounts to 3 per cent of its gross re-
ceipts, and that it paid the city indi-
| rectly nearly per cent of it's gross
receipts.
The committee then laid the matter
over until the next meeting.
The resolution from the joint COM
mittee appointed to arrange with the
! street railway company for a union
depot loop, providing for running the
4 Grand avenue cars down Fifth to Sib-
! ley street, and thence on Sibley to the
union depot, and return by the same
route, or via Third street, was laid over
for the purpose Of calling in the prop
erty owners on Sibley, Fifth and Third
streets, and ascertaining their wishes.
Assemblyman Craig remarked that
nothing could be done with this resolu-
ton. as the Broadway advocates didn't
care g. snap about street car facilities
| at the union depot
The Broadway loop ordinance was
then recommended to pass by vote
of 4 to 2. Messrs, Craig and Reardon
voting in the negative and Messrs.
Thompson. Daily Krahmer and Dix
favoring the measure.
The ordinance to repeal the ordinance
granting certain rights on the levee to
the st. Louis, St. Paul & Minneapolis
Packet company was referred to
Messrs. Thompson and Dix to investi-
gate.
He Met the fncipaIs
The first meeting of the principals Of the
city schools since the election of Supt. Curtis
was held yesterday at the Central High school,
The session devoted to professional dis
cussions, and largely to getting acquainted
First Tax Settlement Abstract