The times. [volume] (Richmond, Va.) 1890-1903, 1899-11-21
CITY OFFICIAL
VS.. THE LAWYERS
Taxation of Street Rail
ways Warmly Debated.
MCCARTHY ON DECK
City Accountant Warns Committee
to Be Not Deceived.
RAILWAY ATTORNEYS REPLY
Disciaim Unfair Dealing i'm the Matter
OF Taxation Clause of Ordinance
Governing the Proposed Rich
mond Passenger aud Power
Company-DispOsit of
Franchise Discussed.

INdiCliNt DiNiuSStu.
The subcommittee on Streets, having
in charge the matter Of preparation of
an ordinance granting a franchise to the
Richmond Passenger ana Power Com
pany was i'm session yesterday evening
from o'clock until half an hour past
midnight. with an hour for supper The
last hour and a half Of the session was
characterized by several spirited speeches
| City Accountant Mccarthy vigorously ar
raigning the street railways and their at
tornoys for alleged unfairness in deal
ing with the committee i'm the matter
Of taxation. and Messrs. Martin repre-
sonting the Richmond Passenger and
Power Company, and Meredith and VIII
liams. ON behalf Of the Traction Company
Indignantly denying charges and ehal-
lenging the production Of figures and
facts bearing on the case
The committee finally disposed OF the
last draft Of tine ordinance which will
now be printed preparatory to its sub
mission to the full committee.
Those present were Messrs. Pollard
(ohairman) Ebel. King Burton, Gibson
and Woody. Of the committee; City All
torney Pollard, City Engineer Cutshaw
Messrs. Bemiss and Meredith. representing
the Richmond Traction Company and Mr..
Miles NJ. Martin. counsel for the Rich
mond Passenger and Power Company.
The question Of taxation was br0ached
When the section referring 10 this phase
Of the subject was reached. "a proposition
was made that City Accountant Nc
Carthy, who was present give the COM
mltlec the data and views OF the Finance
committee. which has the matter under
consideration. There was objection to
this. however. and the section was passed
by temporarily
WHEN FRANCHISE EXPIRES
4 long discussion was preciptatcd by
the NTH section. regarding the disposition
of the franchise on it's expiration thirty
years hence. Tire section was adopted as
drafted. and is believed by the committee
to bring the franchise To- 20 natural and
complete death thirty years hence. The
railways attorneys agreed upon an addi-
tion 10 the section which presented three
alternatives in disposing of the franchise
at its expiration. viz.-giving the Council
the right to- purchase the property. all
lowing it to be sold TO any outside bidder
and. I'm the event of failure OF either
of these alternatives. extending the. fran
chse fifteen years. The committee. how
ever. rejected the amendment, members
fearing that it might involve the granting
of q franchise having forty-fve years 10
run.
The remaining sections We're approved
and then the most interesting discussion
of the evening ensucd over the question
of taxation. which had been passed ear
ier in the evening
FOR INCREASED TAXATION.
City Accountant Mccarthy made a Wig
Or0us statement ON behalf of the financial
department of the city government. ad-
ducng few figures. 10 is true. but making
a. fearless general denial of the alleged
plea oc street railway companies that
the burdens of taxation imposed ON them
are almost uubedrab.e. There was la-
mentabIe ignorance on the subject OF tax
alton of street railways. Dee said and the
Council knew but little more than the
average citizen. On the other hand. the
lawyers representing the corporations
were experts. and were in possession OF
"a complete and detailed grasp of the sub
iect Hence. the committee should be
careful not To- be deceived. Street rail-
way franchises. Mr.. Mccarthy asserted.
had come to Doe recognized by the hnan-
cial and engineering experts Of the world
as the most valuable species of property
safer and more remuneratye than gold or
silver mines
Mr.. Mccarthy, i'm reply 10 a question.
said that the taxation at first, ior "a short
period. should be on the basis of N.iJ and
rer cent. of the gross earnings. The
franchise should ppQv0c Tor increasing
this taxation from pme 10 time. as condi-
tions would requra
Ar. Mccarthy was quite pointed and
almost personal in some of his state
meuts. and counsel Tor The street railway
companies made spirited rejoinders
Mr.. Ebel advocated tax of SLID on The
property Of the company and per cent.
ON the gross receipts ln thirty years he
said. The companies would pay $4,000
to the city, which ne thought compared
very favorably with the amount paid by
companies in other cities.
COUNSEL PROTESTED.
Counsel for both companies protested
against this tax. and made explanations
refuting the statements made by Mr No
Car,hy They characterized the speech
of he city accoun'a as q TRADE against
corporations and lawyers lie hau pro-
duced no figures they complained. and
Mr. Meredith. who has argued The Quos-
ton before the Finance Committee for
both comnan.es. asked the committee %
cefe- action unfii ail available iutO nation
could le submitted.
Colonel Cutshaw suggested that an
average Of the taxes charged by other
cities of the size Of Richmond might be
struck. and AIR Meredith said that wo ia
lie quite acceptable.
Mr. King novel tha, the amount az the
tax should fe leu Omen. After some
further Cis "a. : o. % WAS decided TO adopt
this course. and tto ordinance was then
recommended 10 the general committee
with the exception OF section 4, so far as
IL applies % tlNatirn the sub-c0mmittee
decming it wise to leave this r1atter open
to discussion before the general commit
tee.
THO company was ordered to have the
ordinance printed .ad ready ~ DO SUD-