The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1900-07-21
WHAT ST. RAUL GETS I'm RETURN
FOR T8H PRIVILEGES TT
p GRANTS
THE RAPID TRANSIT COMPANY
Discussion of tie Problem of It's
Taxation-Doesn't Pay, 1t Is
Claimed, What the City
Should Receive.

ILLS GAINED. that one Of the most po-
tent factors IN the development of new
cities are those senli-public corporations
engaged in furnishing the Inhabitants
with modern conveniences, namely:
Water, light. heat, telephone and street
railway transportation. Cities have been
and are liberal In giving them the use
OF streets, and granted them a monopoly
In their particular lines of business AS
municipalities grow in extent, this class
or corporations Increase their demands
proportionately, for the greater the con-
cessions the larger the profits of those
concerns. These special privileges can be
obtained only from local or general leg
islatures, very often obtained at all haz-
ards or costs. It Is not claimed that the
legislation Is obtained by money brides
exclusively, but 1t is generally conceded
that at times questionable means are
used for that purpose Men and women
are found in the employ Of semi-public
corporations who are blood relations of
members of the common councils and
boards in cities and state legislatures.
CITY OF ST. PAUL.
In this city the water problem has
been solved-the city furnishing water to
It's inhabitants. At no distant date the
city Will own lighting plant. The tele-
phone and street railways will continue,
respectively, for one and two generations,
and hence engage the attention of the
common council and the people general
ly.
The st. Paul City Railway company is
one of the most potent factors In the ad-
mtnistraton OF thee affairs in this city:
1t employs hundreds of men, plain labor
ing men, with mo- opportunity to rise
above the station held by them While in
the employ of the5company. They have
no opportunity to advance, as does a
member of the POLICE or fire department.
OPPOSES PAVING STREETS.
The street railway has contracted with
the city to pave all streets between their
tracks. For that reason it has for years
successfully opposed the paving Of East
seventh street; the paving of Rice street,
the Hrst order for%that purpose was IN
troduced in 1892, and for more than eight
years it has succeeded to hold up the
paving of that street, which still remains
unpaVed. 1t Is successfully opposing the
paving Of West Seventh street, between
Seven Corner and Fort Smelling, which,
II paved, would make one of the finest
thoroughfares in the country 1t has fail
ed to beautify University avenue, and
the city on that point. The object of their
opposition to paving is apparent, for, If
the street is not paved they need not
expend money for paving between their
tracks. How they work their schemes is
unknown It IS sufficient that they are
crowned with success. ~,
OPPOSES TAX ADJUSTMENT.
The street railway has always opposed
the readjustment of tax valuations In
this county, for the reason that; if the
public is. successful in having the real
estate assessment cut down 10 or Is per
cent, that will make an addition of about
80 100000 to the personal property ass
essment, but in truth and in fact,
large portion of said amount to be added
to the personal valuations will In fact
and IN justice, be added to the assess
ment of the street railway, and credit
given therefor to the overtaxed real es-
tate owner. The owners Of real estate
in this city are paying out in taxes al
most one-fourth of the rent receipts
This state OF affairs will exist as long as
the average real estate owner will not
investigate the annual fortune which the
street railway makes In these cities, and
that 1T only pays a nominal amount of
taxes.
FINANCIAL CONDITION,
annual income and assessment of the
street railway:
The gross income of the company, In
this city, for the year next preceding
May 1, 1900, was s., 25O, 600 Does It re-
quire an expert to figure out the value
of assets necessary to realize such enor-
nous income inyone year?
The capital stock of the company Is
$50OO,OOO. Not one-tenth is represented
by cash investment. 1t is owned by the
Twin City Rapid, Transit company, a
corporation organized in the state Of New
Jersey, with capital stock of 500, OOO,O 900
(where they pay $4,000 annually in taxes
to the treasurer of the state of New Jer-
sey for the privilege of being Incorporated
there). One and one-half shares Of stock
in the Twin City company was exchanged
for one share IN the ST. Paul company
stock. The Twin City company stock Is
in the market quoted, minimum price:
Preferred, $780,. common, $50. If the ST.
Paul company stock was in the market
for sale 1t would be worth not less than
Sill per share, or $4,000
The net amount realized by the COM
pany during the year mentioned, in this
city, was 100000, which Is per cent
upon actual cash capital of $12,000,00o.
TAX RETURN ON CITY RAILWAY.
In the face of these facts the St. Paul
City Railway company, on June IL, 1900
filed with our county assessor a state
ment sworn to by one of its officers, pur-
porting to be q statement Of all its tax
able propertyy claiming the value Of it's
$5,000,000 capital stock is only S1,250, 00O
and that 1t ia to be taxed only upon
$1,060,000
The annual report of the company end
ing Dec. 81, 1899, for both cities, shows
its assets over $30,000.oOO, of which 30 per
cent is to be credited to this city, In as
sets as we'll as in gross earnings
Its earnings in both cities during that
year Increased 100000 over the year
previous.
If the company was taxed in the man
ner required by, law. on the basis of the
market value Of the stock, 1t would be
on the tax books for not less than $780,
900 If on the basis of actual value, also
based on what it earns or what the plant
here is WORTH according to its own state
ment, then the company would be on the
tax books for $123s6O0,000. BY reason of
these facts, this country incurs a loss,
which is really a5oss to the real estate
property owners, amounting, in valuation
from So, AZ, 06Osto 81, 1886. $40.
SUPREMACY OF THE Law.
If a strike were ION hand, the organs of
the street railway and the company
would at once appeal to the chief magis-
trate of the city or state for protection
to its property=-tbes enforcement of the
law. In these days. when a movement
Is on foot tS teach, and preach to the
laborlng masses that every strike and
lockout is Illegal when it is desired that
the Australian arbitration law should be
adopted as the laMEef our land, and that
the law of the ianas be supreme in theory