The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1902-07-26

has practically reached the limit OF its
bond Issuing capacity. Each year closes
with deficit, our assessments are an
nuaily raised, hut the deficit like the poor,
remains with us always. The question sug-
g,sts itself Where shall we get the funds
20 wipe out the deficit and provide for our
constantly increasing expenses | propose
so answer this question by calling Htten-
tlou to one Of the city's resources, from
which, up Ia the present time, nothing has
been drawn, That resource Is the city e
franchises
our city council has no more right "a
give away o franchise without adequate
compensation than have 70 go to n Dnn9
ana take honoy from its vaults without
It's permission.
Both the street railway cor,l ny and the
international and Great Northern railroad
are nov asking for valuable franchises
without otfcnng fair compensation lhe
companies are not 20 be censured FOR THIS
but | would censure the aldermen II they
grant them. Tho aldermen were elected
on their pledge that they would support
municipal ownership, and that where II
was not practicable for the city to own It's
own public utilities fair compensation
should be demanded for franchise grants,
and that the people should he allowed t"
pasE on such grants
The streets Of Houston belong to It's cit
liens They are valuable. The street rail-
way company has Il franchise permitting
Them Ia lay their tracks on these streets
This permission Is undoubtedly ~ grt at
the street railway company. after deductng
an legitimate expenses, Including taxes paid
on It's tangible property, are sufficient to
ray a dividend on Sl,Nno0. II Is mnr-
Ter OF easy calculation that II wOnld not
cost 100000 10 build and properly equip
the road The difference between the cap.
itaHzcd value Of the net earnings aud the
cost Of the rood and equipment is far
valuation of It's franchise. Assuming tho
calculation Ia he approximately correct. a.
! believe have been very conservative. the
value Of the franchise would he Sl,lo0.eo.
Why not assess this value lust as YOU as
spsS my homestead or other property, which
with economy | have been u lifetime ac-
cumulating. Assessing this franchise Mt 81
per cent Of It's value. according 10 the
usual method, the city would receive an
annual income Of 300. in addition 10 its
ad valorum tax. This would be a low val.
uation for the franchise AZ the present time,
snd, Of COURSE n would increase with thu
growth Of the city Just as the value of real
estate increases, and should be taxed &C
cordingly.
asked for by the International and Great
Northern railroad on Commerce street
Probably the closest way Of arriving at II
Is 10 figure the value OF the street space
they would occupy on the hnsis of the
value Of adjoining property. Approximate
~ the railroad coE-s-any asks for the use Of
COCO feet: Figured Mt 50 per foot. which
us total OF $4,000 Assessing this al q
per cent and We have franchise value nj
$40, 900. which taxed at 2 per cent. would
give the city O net yearly Income OF $40
This Is reasonable amount for tho rail-
road company TO pny for such valuable
site and Ii would probably not be objected
I to by them BY reason Of the government
| apDroprlaton for deep water and the
| growth Of the city. this franchise VIII year
| IN become more valuable and the terms Of
| the franchise grant should specifically state
\ that n should be subject 10 rcassessment
| every wear az It's true valuation, Just a'
| other property Is reassessed.
| We should have no quarrel With railroads
| They are desirable and should not he taxed
/ on their efforts 10 build up their property
| and the city, hut we should insist That thsS
| nav n rea sonahle amount into tho city treas
| Dry for any special grant OF site or terminal
| privileges or streets.
J 1 AK our aidermea to consider well the