The Saint Paul globe., 1904-01-30
LOOKS LIKE A SCHEME
TO EYADE THE TAX
New Trolley Company Which
Seeks Franchise May Be AL
lied With the Old.

| The Minnesota Power and Trolley
company, which is believed to be
subsidiary corporation Of the Twin
| City Transit company, will apply to
either the board of aldermen or the
assembly next week for new street.
railway franchise Application VIII
also be made to the Minneapolis coun-
| Gil.
| Joseph L. Kiichli, Of Minneapolis,
! one of the organizers of the Minnesota
| Power and Trolley company, Whlcn
was Incorporated several weeks ago,
and who, it Is said, owns extensive
land and power interests in conJunc-
! ton with Thomas Lowry, was In st.
Paul yesterday and he is authority 1or
| the statement that the franchise Will
| be asked for
| Though Mr.. Kiichli denies any con-
| nection with the Twin City Rapid
Transit company, the BELIEF Is strong
about the city hall that the appiica-
| ton, If made, will simply be for the
purpose of evading in part the charter
requirements which Corporation At
| torney Michael declares the company
must submit to if it wants to expand:
| Instead of having to pay an annual
gross earnings tax on the recelpls ac-
| cruing from all its lines, which 1T Is es-
| tfmated would be about $4,000, the
| Twin City Rapid Transit company
| through the medium of subsidiary
| corporation, would have to part only
with the tax from the few, ostens1oiy,
| Independent lines that such company
would operate Under this method,
instead of $4,000, the tax would be
about $4,000.
| Mr.. Kiichli, who heads the company
which he says wants to share the
street railway business of the two
! cities with the present company, IN
| formed those who greeted him at the
city clerks Office yesterday, which he
visited in company with Aid. Rohland,
that his company had pa1d-ln cap
| ital of $2,000000, and that it was now
engaged in making arrangements for
the construction of a large power dam
near the town of Elk River, on the
| Mississippi river.
Matter Is Now Before Congress.
1.-The grant for the use of the falls,
which are about thirty miles above
Minneapolis said Mr.. Kiichli, was
passed by the house of representatives
last week and should have been IN
dorsed by the senate today. We own
the land on either side of the river,
where the power house will be located,
the dam is completed we expect that
it will give US about 5000 horse pow
er. We now own forty miles of rig1H
of way in Hennepin county and eSf
pect to increase it if we can get grants
for franchise from the two cities.
Our application for a franchise will
probably be made next week, and if
| not then, it will come about the middle
of February"
Whafher, hiS oomnanv would ask fhe
st. Paul council for general street
railway franchise or simply for a right
of way over certain streets for interur
ban purposes, Mr.. Kiichli refused to
say, claiming that this had not been
decided upon. 1t is believed, however,
that if the application is made it will be
for a right of way to South st. Paul,
line over the Marshall avenue bridge,
a cross-town line on Dale, one on Shell
ing avenue, and a right of way over
Randolph street.
These are the lines which the st.
Paul City Railway company is desir-
Gus of adding to its system. While to
all intents controlled by the Minnesota
Power and Trolley company, the new
tracks could easily be connected with
the local company and courtesfes ex-
changed.
Has Bought Right of Way.
The Minnesota Power and Trolley
company, when first exploited, an
nounced that it had secured the old
motor line right of way, which connects
Minneapolis and Excelsior, and would
convert it into a trolley line. Tonka,
another of President Lowry's proper
ties, was also to be connected, and Incl
IDENTIFY Shakopee and other small towns
in that vicinity Mr. Kiichli yester-
day displayed maps showing these
rights of way, which, he says, have
been purchased at a cost of $50, 900.
The company also has a right of way
over one Of the bridges across the Min
nesota river, which was granted it by
the commissioners of Hennepin county,
This is to be used in reaching Shako-
pee. Anoka is also to be tapped, ac-
cording to Mr.. Kiichli.
Mr.. Kiichli is one of the principal
owners of the F,reie Presse- -Herold, of
Minneapolis, and at one time was presi-
dent of the city council.
According to Information from Min
neapolis, the Minnesota Power and
Trolley company owns land on one
side of the Mississippi river where the
and Thomas Lowry, president Of the
Twin City Rapid Transit company,
controls the opposite side
1t is generally believed that the new
corporation is simply q scheme to con-
fine the application of the charter tax
to few lines, but the whole thing may
run up against a snag. Corporation
Attorney Michael intimates that If
purpose to evade the tax can be shown
the scheme will avail little.
MINNES0TA'S SVERIFFS