The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1898-10-28
AGAINST THE LICENSE TAX
DON'T WANT PATRONS ITO PAY
THE FREIGHT
Veteran Volunteer Firemen's Asso-
citation Petition For a Grant of
City Land On Which to Build a
Hall Favorably Considered By the
Council Committee.

tam Bel Telephone company. AT least
that is the evident impression sought
to be conveyed to the city council
Committee on municipal laws by
President George Y. WaIlace's remon-
STRANGE against the passage of the pro-
posed ordinance imposing a license tax
on all telephone instruments in the city
The committee last evening discussed
the question in all its ramifications,
and then agreed to take such action as
would tend to bring the contention 10
as speedy and satisfactory a focus as
is possible.
In his communication to the commit
tee, President Wallace cited numerous
reasons why the Rocky Mountain Bell
Telephone company should not be IL
cense-taxed on a basis of the number
OF instruments rented. The first
Weighty reason presented was that a
yearly license tax of 50 or less per IN
strument would eat w. all the COM
pany'S legitimate profits. On July l,
1888, the company had 764 phones rent
ed out in the city, 'eiding an annual
revenue of 6,59S9O, an average of sol
for each instrument. The company
operating and maintenance expenses
Tor last year in this city were, accord
ing to the communication, Sal, 996.4T,
leaving a margin of $4.602.43. However,
no mention was made of the revenue
from toll lines, that is, this city's Dor
ton OK earnings for messages to or
from distant or nearby points connect
ed with the telephone exchange.
As TO the generosity of the telephone
company to the municipality, President
Wallace directed attention to the fact
that the city had the free use of six
instruments, worth 500 per year, and
the use of its poles for the fire and pO-
- n..aw L.
OoO bitches" worth three bits per
hitch. or 500 per year. Then it was
pointed out that according to the COM
pany's franchise the city could not eX-
act any part of the $3.50 2 { ear in con-
cessions, which We're purely voluntary
on the company's part. The only con-
Sideration, the communication stated,
in granting the franchise was the
great benefit that would result to the
community" The company paid taxes
on S5S;S69 OF valuation in 1897, but the
assessment will be lower this year.
A FEDERAL LAW FAVORS THE
COMPANY.
The more important part of the re-
monstrance came toward the end.
where il was announced that accord
ing to a recent decision in a California
case, the decision of the Utah supreme
court N the Ogden license tax case to
the contrary Notwithstanding, a tele-
phone line and system are held to be
akin to a post road, which is not liable
to a municipal license tax, and, more
over. needs no franchise for its main
tenance and operation. The decision, ii
was related, followed the lines laid
down in judicial interpretations Of the
interstate commerce law.
President Wallace's communication
concluded by saying if the license tax
TO be imposed by the city must be paid.
it must come, not from the cOmoany's
users of telephones.
When the discussion commenced.
Councilman Weller suggested that the
city would make money by imposing a
license tax of, say 50 year per instru-
ment on the company, and paying for
the free privilege now enjoyed on a
yearly valuation of $3.50.
Chairman Callister remarked that the
telephone company's president offered
10 let the councilmen inspect the books
of the private. close corporation which
on the showing made is almost losing
money.
None of that for me-" Councilman \
Diehl replied. L had an experience of
that kind with the Salt Lake q Ogden
Gas & Electric Light company, and be-
fore 1 got through its bookkeepers came
pretty nearly bringing the municipality
into the company's debt If | had my
way the telephone company would have
to pay the city we'll before it got any
more valuable privileges from the
city"
Councilman Wallace thought the city
should get all its telephone service free.
instead of paying for half the instru-
ments used by it.
Chairman Callister said the commit
tee desired only to impose a reasonable |
license tax on the company or secure !
adequate concessions for the benefit of |
the city, but in no case should the tariff |
be paid by the telephone subscribers. /
With this statement the others of the /
nodded concurrence.
Then the committee resolved to direct /
the city recorder and the city attorney /
to make a search of the council records /
for the purpose of ascertaining what /
the Rocky Mountain Bell /
Telephone company took when it re- /
ceiVed its franchise for street privileges, /
and also as to whether the city has not |
obtained an adverse legal right TO use /
the poles for the fire and police alarm /
wires, on the score of the great benefit /
to the community"
The telephone company intends to /
AXE the ogden license tax question to /
he United States circuit court, and the |
concluded il would follow the !
to the last ditch.
CITY WILL HELP THE V. V. f. A.
The outlook is very good for the Vet
eran Volunteer Firemen's associa ton
securing a piece of city land on which
o erect a suitable building for meeting
purposes and for storing the records
md relies of the veterans who aimed
o aid and worked to save" before fire
lighting in Salt Lake City became a
simple, easy matter. The committee on
last evening accorded a
hearing 10 eX-Fire Chief Ottinger and
.ir. c. II. Banks, who represented the
petitioners. The committee announced |
is willingness to recommend to the
council the leasing of a small piece of
ground, 35x75 feet in area, adjoining
ne waterworks emergency station. at
i a year for 25 years, on the stipulation
hat the building to be erected would
,e used for no other than association
purposes and not for pecuniary profit
Ex-Chief Ottinger said the associa-
ion was made up Of prominent old cit
zens. all of whom were ready to assist
he paid firemen whenever emergency
rose 1t would be a perptual fraternal
rganization, the sons of veterans pur-
osing to carry the associations OBJ
ects forward. 1t was, he said, the in
ention to erect a one STORY brick build
lg. 22x60 feet. inside dimensions. ar q
ost of S1,500, and later on another story
fould be added
Mr.. Ottinger said the veterans de-
ired the building site to be next east
D the brick mill on North Temple !
treet. but Superintendent Game sug-
ested the State street frontage at the
xtreme north end of the city lot as a
lore suitable place. This idea seemed
D strike the committee about right |