The times. [volume] (Richmond, Va.) 1890-1903, 1899-11-28
Probable Action of the BOyd-NewtOn
Syndicate.
COULD NOT SELL ANY BONDS
The Element of Uncertainty Would
Carry Away Capitalize Finance
Committee 10 Meet To-
Night-May Reconsider
Their Former
Action.

II can he stated on what seems to be
tire most excellent authority. that the
Boyd-Newton syndicate will rot accept
the franchise as recommended by the
Committee on Streets.
That document IS perfectly satisfactory
TO the syndicate with the exception oil
the fourth section, which imposes a tax
of 81. 10 per centum on their realty and .
per cent. on their gross receipts, the lat
ter to be increased every ten years at the
option OF the Councils then i'm Office.
The Finance Committee. which had the
matter under consideration. recommended
that the tax be per cent. 10 begin win
that it be increased 20 ~ per cent III
1909, and 10 per cent. in 1913.
I'm lien OF this Mr.. Ebe moved that the
increase be left to the discretion OF the
future Councils, and his motion was
adopted.
FINANCE COMMITTEE
The Committee on Finance will hold
another meeting tonight and later IN the
week the Common Council VIII asseIhDie.
10 Is thought that the committee VIII
again consider the subject and be prepar-
ordinance when it Is presented which VIII
not be so burdensOme upon those who are
seeking TO secure control Of the lines.
A gentleman who is thoroughly cOgni-
zant of the affairs Of the Richmond han-
way and Electric Company and OF lhe
views of those who are applying for
franchise said yesterday that there WAS
not the faintest chance of their accept
ing the franchise as framed by the CON-
mittee on Streets.
No sane business man would he said
"aud / wonder greatly at the stand taken
by the committee on the subject OF TAXA
ton.
.sThe Richmond Railway and Electric
Company has been paying a tax OF De-
tween 2is and 3 per cent. Their earnings
have not been sufficient for them 10 keep
their roads and equipment IN good conui-
tion, - can be seen az glance. hey
have not earned sufficient TO pay their
bondhoIders. OF this the floating debt or
$4,000 is proof positive. As they nave
heen able 10 do neither Of these things
they certainly have been unable 10 es-
tablish n sinking fund for the protection
of the principal of the hOndholders.
iIf the road has not earned slihcient
10 DO any of these things under 3 per
cent tax. how can il do so under per
cent. tax and with an additional burden
Of $40 per hundred on its realty me
whole thing Is a simple business proposi-
tion. capable Of demonstration so plainly
that any one can understand ii.
ELEMENT OF UNCERTAINTY.
Granting, however, that the road
could make money under such conditions,
there is another trouble 10 be faced II
tha rrouosed ordinance becomes law.
The greater portion OF the money neces-
sary to carry on all large enterprises
must come from abroad, there Is not SUI
Gcient here. Suppose an attempt shouid
be made by the syndicate 10 sell DondS 10
northern capitalists. they would be
laughed at when they said that no one
knew what the rate Of taxation woulo DC
ten years hence; no one would Duy 'ne
bonds under such conditions.
- believe the Street Committee ana
the Council desire TO act fairly, Dut they
have been misinfOrmed ln the street
committee the other night the statement
was made that the street car lines OF Ne"
orleans are taxed more than 10 per cent.
ON their gross receipts Information re-
ceived to-day from the presidents OF the
lines there states that this Is incorrect
the tax does not exceed per cent quite
a difference, you see
PUBLIC SENTIMENT
So far as it can be ascertained, the
sentiment of the people Of Richmond Is
I'm favor Of the Passenger and power
Company securing the franchise on such
terms as will give the people the pest
service .
"We had rather have a little more
spent on the lines and equipment said
"A man who patronizes the cars great
deal "and less put into the city's treas
ury. It will 90 the public far more good
i'm that way II a heavy tax Is imposed
the street car people are certain TO cur
tail their expeditures.
Look at the present outfit he con-
timed 1T is said that &300O nave
been put into it one way and another but
I wouldn't give 81 000 for the whole
business-lock, stock and barrel. IL i
were going 10 start line would rather
have the whole thing swept away ana the
streets lett clear. g..
A number Of members OF the street
Committee were seen yesterday, and most
of them think that the ordinance VIII
pass as it stands. ,,,.
some OF the others. however, openly
- 49, tho tay IL TOO heavy.