New-York tribune., 1902-10-10
RECEIPTS FROM FRANCHISES
MANY CITIES GET NO RETURNS FROM
CORPORATIONS SAVE IN TAXES
WHAT OTHERS GET.


/ Rochester. Oct (speciaD-One OF the most tn
teresting and important OF the papers read before
the American Society Of Municipal Improvement
at It's convention in this city this that
presented by William = CrandaH OF New-Y0rk
City. the question OF the compensation received
by cities from the corporations 70 which franchises
have been granted. Mr. CrandaH wrote % the
mayors OF 125 cities in all parts OF the country OF
more than 3OO0o inhabitants. he received replies
from hfty-three, but although the ars IN
complete. the Information thus acquired was con
sidered Of great value by those who listened the
reading OF the paper
According Mr.. Crandau the following cities re-
cetve no compensation for their franchises. Bay
onne. y. J.: Birmingham. Ala. Bridgeport Conn:
Charleston ) c. Dubuque Iowa: Fitchburg. Miss.
Grand Rapids, Mich. Houston. Tex: Porta and Ne:
Quincy. III; Schenectady. y. Y; sa.em and somer-
vile. Mass; ST. Joseph Mo-. Troy. v T.: Toledo.
Ohio; Trenton. y. J.. and Wilmington. Del
Many cities receive almost nothing. but Il Is IN
teresting TO notice that the railway compa-
MES are the ones that make some return in most
cases Portland. Ore. reports that no compensation
is received from street railways teegaphs electric
lights and gas companies The Mayor OF thar city
admits in his reply that the city has been very
careless in the matter Seattle the other hand,
has official inspector Of franchises. who writes
that the income derived from those granted BY the
city amounts 10 about $1,000 annually. p. J. Ryan.
Of Elizabeth. y. J.. says that. while that civ re-
eetves no compensation from the principal trolley
company there, another more recently established
has not escaped 50 easily. IL is required 70 pave
from curb 10 curb the streets through which its
lines run. 70 keep in repair The pavement between
It's tracks and for three feet outside tracks on
each side, to sprinkle the streets and remove the
snow, and for period Of i've years to pay 800 a
mile for tFackage IL is also required to pay per
cent OF It's gross receipts for five years succssd-
ing Eto and for every year succeeding 1910 must
pay per cent Of its gross receipts or a sum equal
TO at least $50 mile OF it's trackage Elizabeth
mas Two telephone companies wnlcn supply frss
service for city offices and departments and pay
SiJa year for every mile OF subway used by their
wires, the Iotai mileage u be not less than tan
miles.
Providence. r l., reports succinctly as follows:
The street railway pays per cent Of gross earn
inss telephone companies, per cent. electric light
compaHies per cent, gas companies. 3 per cent
Schenectady. n. T., reports that no comysusation
IS required Tor franchises granted except the free
use or twelve telephones from one OF the te4ephons
companies This Is fair sample Of replies received
from nearly score Of cities Mr.. Cra1oau said
According 10 Mr.. Cralda.'s paper. the larger cit
les have taken better OF their franchises.
Mayor Low writes of greater Nsw-YorK that FOR
the year EOl the municipality received from per-
eenIaseS on gross receipts qIas.- puDc corpora
uoES sSr', ~ from car licenses s.S.-lO total OF
S1Ad.oJJ No direct compensation is recety ed from
telephone and telegraph companies.
James " Huooe.L Depuly Cont oiler OF Chicago,
sSsrS tSs sas cqpig @ % pay p,rceatss Or their
James \. Player, City Controller Of 81. Louis,
whose bribery scandals mae Tie reporJ OF UNUSUAL
pensation from quasi Du0nc corporations 1901 the
LO-l0WlnE. street rallSa So. telephone So
b9S SS telegraph. &S6i 90 eectrC light Sj45 IA other
coIyordt4ons 81 al ~; total. S-o5 a. Ine gas
paLy paid nothing
Mayor julius F'eischmann OF Cincinnati wrote
tnat II tAal CITY street ralI" ays pay t4 OF per
cent or SEOsS earnings and additional license
ears or j per cent OF gross earnings Telephone,
telegraph, electric ugnt and sas companies pay
compensation outside or ordinary
Cleveland. SAYS Mayor Tom Johnson. receives no
money compensation for existing street railway
franchises or from telephone. telegraph and eleC-
tric usnr companies. Two gas Companies pay 10
per cent 0t their gross receit Is
Mayor Robert A. smith of St Paul saws that MS
city receives practically return for franchises.
but that the new charter adopted years aSO
PROVIDES Tor a per ce NJ tax gross receipts OF
al pubic corporations. This will not into effect
Los Angeles IS IN bad S4lape and former Mayor
snyder says The state law provides fCr the al
Nerusement and sale CT Je ephOne. hsnJtng rail-
way and other franchises. The law provides that
pr then the franchise is open for general
ding and sold the nj hest bidder The law
also provides that after period OF uve years per
cent OF the gross receipts shall go 10 the munici-
This law known the Broughton law. and
put through the legislature through corporation in
fuenCe. / believe that II Is bad .aw.
Mobile, Ala. Is even easier on its Corporations.
railway company the following returns; First ten
years. one-qUarter Of per cent: second ten years
One-half Of per third ten years, per cent,
fourth years IL cent, hftn ten years. per
the aiming time PRIOR 70 lSo0 S per cent
upon the gross receipts
Rochester receives no compensation from the gas
and electric light CUrparies. except the 0y the
city OF certain poles. The street raliWay cOmpans-
pays s. tax year IN each car. and per Gem
OF its gross earnings The city has no legal right
n, lat he