The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1902-12-28
VALUES OF STREETS.

ThororGhrarcs have commercial values. Several
outside newspapers have said that st. Louis has now
an opportunity, if elevated railway franchises he
granted, 10 establish Il local standard of values for
the use of streets. or parts Of streets. for semli'ublc
purposes. The advice is undoubtedly we'll intended;
from every standpoint ii is sound and timely. But
fu'fillment Of the purpose Is not 50 simple.
Necessarily some more g: less d"tcrminate system
must he made 10 apply. a. nearly as possible, in fin
Of space over. under and upon public places. ON
III" other hand. 10 system has been found applicable
TO such an extent rs to become standard. There is,
in fact, Il lack of system. Corporations are required
rs a rule. to pay Il percentage on their receipts when
the publ, property that is utilized brings a direct
revenue. Nevertheless. exceptions are made even in
the case of some companies which Use public prop
criy FOR strict business purposes.
Approximately uniform rates probably could be
established for space over and under public places.
according to the nature of the privilege, with some
attention to the real value of surrounding property.
But fixed rates for the use of space upon streets could
not he estimated on Il basis of real value for street
railway purposes. For railway use streets could not
acquire any relative real value. although such a value
might in fact exist. The value is more potential
than real, and the compensation percentage should
be computed on a basis of corporation revenue.
Companies are not compelled TO pay for building
Il cellar under 4 SideWalk. ara SenefalE not lor nllIu-
ing a tunnel under or Il bridge over a street: or for
encroaching over. under CT upon sidewalks and al
leyS. No charge is cxacted from a mercantile estab-
lshment for advertising or utilitarian devices over,
under and upon public places. Street railway and
telephone companies pay Il percentage of their gross
receipts for privileges granted. but the compensation,
especially in regard to railway companies. seems
rather to apply to the franchise than to the space oc-
cupied and used.
Originally franchises and privileges were granted
to private corporations for merely nominal considera-
tons, public officials having been actuated by desire
TO improve the public service; later. as values of
grants came to be realized through competition. more
motives held down the city's revenue. In
some instances compensation either was not demand
ed, or was made low, in order to encourage enter
priseS that We're virtually Il public necessity.
The method of assessing compensation on gross
receipts is practiced because it represents an ap-
parently fair system of getting n reasonable income
on the actual business done. 1t puts the city in the
position of being 4 stakeholder, without risk of loss.
However, the method does not always work out fair
ly to the city, as gross receipts may be altered by
corporations.
The city could not well place a value on the space
occupied by rails, or on this space and on the fran
chise. The best system for obtaining adequate and
fair revenue would be part of the receipts. Perhaps
the Municipal Assembly came nearest TO solving the
problem early this year when the City Council passed
a bill to require railway corporations to pay tax of
1 mill on every Scent fare. This bill failed to pass
the House of Delegates. although the City Charter
clearly authorizes this method of obtaining compen-
sation.
st. Louis needs several overhead or underground
railways. preferably underground, but 1t also needs
revenue. If franchises be granted the Municipal As
sembly should retain TO the city general control and
supervision over the enterprises, see that the city
gets adequate compensation and %stipulate conditions
whereby the city could enter into ownership of the
utilities. The franchise subject will comprise one of
the most important articles in the new City Charter.