Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1899-11-28
STREET RAILWAYS AND COUNCIL


/ olIned 20 think that the ta~atloh oi ''o
street railway companies AS propose" ~
the Council committees is very onerou"'
II IS asserted by the companies repre-
sontatives that the rate proposed IS great
a. than that enacted by any other city
In the United States
The DISPATCH holds that Richmonu
should derive from such corporations
revenue equal 10 that obtained py any
other city Of our population, but no" W.
are told that the rate recommended NOT
only exceeds that paid TO other cities OF
our class. but Is not excelled anywhere
The figure named by the committees Tor
pcriod Of ten years is s per cent. on the
gross receipts, plus the city ana STATE
taxes. which now amount TO $50 on the
500 of assessed valuation In round num-
bors the total tax would amount TO about
7 per cent. per annum. and 1t would ap-
ply both 70 the Traction Company and
the old company. or its successor.
The suggestion OF the street Committee
is that after the first ten years Cat the
rate before named) the City Council
should have the right TO fix the rate.
The idea Of the Finance Committee Is 10
Increase the rate by 21-2 per cent. at the
end Of the first ten years, and 21-2 per
cent more AT the end Of the second ten
years-ths to continue to the end Of the
term.
At present the Traction Company pays
; per cent. upon ifs gross receipts in lieu
Of all other city taxes. The other com
pany pays a great deal less-the exact
figures we haven't at hand
Because Of our hills Richmond Is not a
cheap city TO operate street-cars in, while
our companies give six tickets for quar-
ter and have half fares for workingmen
and school children. which are not usual
in most other places. But burdensome as
the street-car companies would find the
requirements Of the first ten-year period,
these are not so Objectionable as tho in
creases that would follow. If the figures,
or any at all like them. are to be In
sisted upon for the first ten years. 1t
would seem to be but fair that increases
the companies receipts. 1t would be
hard to increase taxation upon a station
airy or declining business. On the other
hand. as business increased, as gross re-
ceipts grew, It would be altogether pro-
per that these corporations should share
their prosperity with tho giver Of the
franchises.
We hope 1t is not yet too late for some
such agreement to be reached. We
would have Richmond encourage investors
I'm every proper and reasonable way. And
It Is but just to say that the present ac-
tive business conditions here are largely
due TO the two sets Of men who have
been struggling TO get the Main and
Broad-street franchises. but who have a
common interest I'm wishing TO see this
tax question settled upon. a conservative
basis. So this is not a case where It
would be n wise policy 10 exact the last
farthing possible from the capitalists in
question. A reasonable margin ought to
be left them wherewith to improve their
road steadily, pay good wages TO their
employees, and reserve a fair profit TO
themselves. SO far 1t is not recorded that
the men who have put their money in
Richmond street-railway securities have
received inordinate prOfits We fear that
that phase Of the case has not been
studied as thoroughly as It might be-
While we cannot but applaud the pur-
pose of the Council to make street-rail-
way properties bear due share of tho
burdens Of taxation. we suggest tho pos
sibility that the pendulum may now swing
too far that way. 1t is TO be hoped, at
least that upon the expiration of the
first ton-years period the tax-rate. so far
as 1t IS to be increased. shall be proper
toned to the gross receipts Of the COM
panies.