The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1901-08-02
The TAX ON
CORPORATIONS
CAUSED A BIG DISCUSSION IN
SELECT COUNCIL.
The Common Council License Tax
Ordinance Was Under Considera-
tion and Messrs. Vaughan, oliver
and chittenden Argued in Favor
of Tax on Public Service Com
panies-Mr. Melvin Led the OPP
position - Amendments Increas-
ing Tax Adopted.

The common council license tax or
dlnancc. providing for per centum
tax upon the gross receipts of the
several large public utility corpora
tions doing business IN this city, pro-
voked n large amount Of singularly
undemagogic discussion In select coun-
Gil last night and after 1t had been
partly amended, action was postponed
until the next meeting.
The license committee met before
the meeting, and after considering the
voluminous ordinance introduced in
select council and the brief measure
already passed by the common
branch. decided to report favorably
upon the latter. The common council
ordinance In the form in which il was
reported by the committee provided
for a tax of five per cent. upon the
gross receipts of street railway conf
panies. and for a tax of two per cent.
upon the gross receipts of water. gas,
steam heat. telephone and electric
| light companies.
When the ordinance came up on
| first reading. Mr.. Wagner moved that
action on it be postponed --in order
| to let the members more thoroughly
| inform themselves as to its contents.
| This motion called forth storm OF
protest from several of the members,
notably Messrs. Vaughan and O'Boyle.
Mr. Vaughan protested against what
he called dilly-dallying" and said
! rhat If the ordinance was not con-
sidered now it would be allowed to
drag along and finally permitted to die
| like all other license tax ordinances
! in the past.
OPPOSED HASTY ACTION.
Mr.. Mevin counselled conservatism,
and was opposed to hasty action.
"These companies" said he, ought
to he treated as individuals. There's
no use in taxing them just because
they're corporations. There's 10 use
in taxing d company that don't de-
clare any dividends five per cent, as
this ordinance does. It's foolish, that's
ALL" The motion to postpone was lost
by the following vote:
/ Ncas--RoSs. rinn, Costello. Evans, Morgan,
Melvin. Wagner, Schneider. OMallCy-9.
Nays-Rcgan. Maoney, Shea Ncrriman. Cos.
grove. Oliver Schroeder O'Boylc Vaughan, Chit.
| tcndcn-lO.
Messrs. Cossroye and Merriman had
amendments ready providing for an
increase of the tax on the water COM
pany from two to five per cent, but
Mr.. Oliver got in ahead of them with
Il sweeping amendment providing for
an increase of the tax on every COM
pany from two to five per cent.
President Chttenden relinquished
the chair TO Mr.. Finn and took occa-
sion to remark that to raise the tax
on all corporations to five per cent.
would he "A little unjust. The steam
heat company. he said, was just barely
existing and could not afford to pay
any such tax.
''The water and street railway COM
panieS should be taxed, however" said
he. After a water company gets its
plant established all the stockholders
have to do is sit around, look pleas
ant and pray for rain. They ought
to be made to pay "A little bit into the
city treasury for this, The street rail-
way companies should and must be
taxed. Down i'm Baltimore they col
lect a tax of ten per cent. on the gross
receipts Of their street railway COM
pany and the money derived has been
devoted to park improvements, so that
Baltimore now has one of the finest
park systems in the country. Newark
imposes a tax Of five per cent. and took
in $50, 900 from the companies last year.
We should do the same"
PEOPLE PAY IN THE END.
"The people will pay for it in the
end. They'll! suffer the consequences,
remarked Mr.. Melvin,
"Oh. no they won't, either" shouted
Mr.. Oliver. who was on his feet in a
minute. ITS about time councils
looked this matter OF taxing corpora =
tons squarely in the face and stopped
lodging the issue. The members OBJ
ject to taxing these companies five per
cent of their gross receipts. I'd just
like to be shown the taxpayer in this
city who isn't taxed more than five
per cent. of his gross receipts. I'd
like to have it known that the ordinary
citizens of this city pay in some in
stances as much as twenty per cent. of
their gross receipts in taxes. | know
that / pay that much. If the ordinary
citizen can pay over five per cent. there
isn't any corporation in this city that
can't afford to do the same thing
The amendment to increase the tax
on the water company from two to five
per cent. was carried by the following
vote:
Yeas--Ross, Costello, Evans Morgan, Rogau,
Schneider, Shea, Merrman. CosGrovc, Oh'er,
Schroeder OBoylc, Vaughan, Chittenden--li.
! kays-Finn, Melvin, Wagner o 0Mallcy,-i
The amendment increasing the tax
on gas companies was carried by the
same vote, with the exception that
Mr.. Wagner voted in the affirmative
instead of in the negative as before.
Ii was decided to pass by the steam
heat company and then the motion
was made to increase the tax on cleo
tric light companies.
Nov, let's get in our work" said
Mr.. Vaughan. This is the concern
that is now engaged in skinning us,
and we'd ought to come back at them.
They succeeded in having councils
permit them to abrogate two of their
contracts. and now's our chance to
get even"
This company has also succeeded
most beautifully in transforming
Scranton from the best lighted city in
the country to the worst" added Mr..
ChiItenden.
Mr.. Costello didn't think that the
electric light company was "skinning"
the city ana was very much surprised
tC hear Il member of the council say
| so.
"Oh, is that so?" rctorted Mir, Vau-
! CHAN. "r said that this company is
skinning us and | repeat II, II I've
| offended you, l apologize"