The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1898-10-25
NORTH HUDSON'S
PROPOSALS.
Hearing On the Question to
Establish a Trolley On
the Grove Street Line.
CITIZENS WANT TAX ON RECEIPTS
Railroad Company Will Give
$500, Sprinkle the Streets
and Perfect System
OF Transfers.
CITIZENS WANT TAX ON RECEIPTS

son County Railroad Company to change
the motive power on Grove street from
horse car to electric road. The lobby OF
the Assembly Chamber contained Presi-
dent Myron j. Furst, Assemblyman
J.. r. Hall and a small delegation from
the Board of Trade and Merchants Pro-
tective Association, and Lawyers w. d.
Edwards and G. H. Holmes and F. J.
Mersheimer for the railroad company.
The Board having s~ignified that it would
hear the citizens first, Lawyer Joseph
Anderson rose to present the views of
the Merchants Protective Association.
He said that his clients did not oppose
any rapid transit schemes or other plans
for the Improvement of the city, but the
citizens desired a certain amount of pro-
lection, The petition. he said, proposed
to give the railroad company a franchise
to extend its electric power to the entire
| system of the company. from the Hobo
ken line throughout Jersey City to Ex-
change place.
ssOur presence here today, continued
Mr.. Anderson, is to ask the Board to
fix a percentage on the receipts for the
franchise and not an annual rent, and
give the franchise for a limited period
instead of an unlimited term of years.
Now, Iawish to read-sto your Honorable
Board certain statements which will as
sist you in your deliberations:-
Il propose showing amounts paid to
Jersey City by the Consolidated Traction
Company for the franchise tax on its
West Newark avenue line. The figures
are official and have been taken from the
City C6mptrolIer's Hough's reports and
show the annual increase when the tax
is a percentage OF the gross receipts
For year 1895. $685. y; 1896, s757.4s; 1887,
81 061. SO; 1898. 81. 245.15.
Amounts paid by the North Hudson
County Railway Company on additional
track:-For year 1895, amount so small
not paid in 1885, but probably paid in 1885;
1885. $73.54; 1897. $50. 80; 1898. ss7.67.
ITO show profits Of the North Hudson
County Railway Company. In interview
published on June 4, 1898, counsel for the
said company claimed that the company
had not paid any dividends. The follow
ing is the official statement rendered by
said company to the State Board of AS
sessors:-Capital stock. $1,O0O, 600; unded
debt, "a, 1857, 600; other debts. 1858, 1915;
total, IS $685., 1878; income, ss28, loops; total
expenditures for year, s627, 0s6. 81; profits,
s2ss, 0s3.s7
The profits are 5 and 1900 per cent. Of
the entire Indebtedness of the company
plus the capital stock:-Prohts. $685. e3. 81;
interest on the total debt Of company. 81
G95, 1877 10, funded at ) per cent, S234, $3.50. 35.
total, SCI, 104. 50; interest on capital stock Of
81, 600. 900 at 6 per cent, $685. 900. Total. l.
104.e 60.
TIL compan could have paid interest
on it's total Indebtedness at 5 per cent.
and paid a dividend of 6 per cent. ana
still have a surplus.
Counsel for the p claimed that
company paid ~ per cent. of its gross
income. Here are figures on that point:
Total cost Of railroad, s.. 706, 141.91; total
tax paid by company, $27, 1924. 81; percent
age rate of tax paid by company, 1890;
the tax rate in Jersey City is 2 and s4-10o
per cent. The Individual tax pave.
pays nearly six times as much as the
railroad company. The average proper
ton Of the gross income of Jersey City
improved real estate required to pay the
tax is not less than q per cent. or G
times the proportion paid by the com
pany.
1.-THE foregoing Statements" said Mr..
Anderson, "are made to prove that five
per cent. of the gross receipts is a fair
compensation to be paid by the company
for the franchise. If the Board in lis
wisdom deem a less amount to be suifi-
cient we think the following conditions
should be Incorporated in the ordinance
granting the franchise.
That the company open Grove street.
between the north line of Jersey City and
Newark street III Hoboken eaua to the
present width in Jersey City, and main
tain it as a public street forever.
THAT the company waive any claim to-
exemption from a charge for a license
for each car used in Jersey City This
will enable Jersey City to collect a license
fee for each car, similar to the fees now
collected by Newark and Harrison.
THAT the franchise be only for a limit
ed period Of time: not perpetual.
THAT the compensation be made on a
percentage basis and not on an unvarying
| annual rentrf The city will then share
in the increasing value of the franchise.
A provision should also be inserted that
| the annual compensation should not iii
any one year be less than a certain
| amount to be named by the Board
Mr.. W.eD. Edwards representing the
North Hudson Railroad Company. said
| that the horse car had now been super
| seeded by the trolley, and the COMPANY
Mas simply asking to change the motive
| power. It was true. he said, that the
| company would be benefited by the
| change, but so would the city because of
improved facilities. The company had
received ~innumerable requests to nave the