The Saint Paul globe., 1904-12-18
SENTIMENT FAYORS
STAND OF COUNCIL
Many Prominent Men Approve
Enforcement of Gross Earn
ings Street Car Tax

l
Sentiment is almost universal in favor
| of upholding the attitude of the city coun-
Gil and Corporation Attorney Michael in
their demands of the st. Paul City Rail-
way company.
1t is difficult to find person who be-
| lieves that the city should compromise
without requiring the payment of the 8
per cent gross earnings tax imposed on
public service corporations by the city
charter.
At a conference held between the
special city council committee and the
street railway officials Friday evening,
| the company asked time in which to con-
slider the ultimatum of the city council.
| The council demands that the company
Fay the gross earnings tax, tunnel Selby
| hill, give scent fare from St Paul to
| the state university, and grant a 5-cent
| fare from Minneapolis to Smelling avenue.
| in addition to concessions offered by the
company. Generally the per cent tax is
! considered Of prime importance.
Samples of the opinions expressed fol-
low:
Gross Earnings Tax
T. R. ane@Substantially, 1 believe
that the propositions made on behalf of
| the city, including the gross earnings
tax, are eminently fair, and should com
mend themselves to the foresight of our
people before any retreat should be
sounded. There should be no attempt to
unnecessarily hamper or in. any manner
| oppress the success or development of
the City Railway company, and for that
reason there are few of the less i'm
portant propositions that might be eiirni-
mated without injury to the interests of
the public. The certainty and security
which a settlement on the lines suggested
by the city would give to the City Rail-
way company, particularly in its freedom
F<r. !, frnr1
interference with its passenger rates, is
so intrinsically valuable to the company
that it should make no protest against
other equitable demands made by the city.
Estimates Too Small
Hugh T. Halbert-There is no question
in my mind that great majority of the
people believe that the street railway
company should be compelled to pay the
gross earnings tax. l have yet to find
! man who is disinterested who does not
believe that the company can well afford
to give to the city per cent of its re-
ceipts if given the right to charge
5-cent fare for the next thirty-five years.
With the receipts OF the company in
creasing at the rate of $150,000 year and
every reason to believe that the ratio OF
increase will continue the same that 1t
has during the past five years, the COM
pany will at the end of twenty years pe
taxing IN from the 0l. du4 lAA4Co q eONcAA
of 81 SOC, ,000 a year. The expense of oper-
alton and maintenance will not increase In
proportion, and the natural profit will be
tremendous At the same time the city
would be receiving the comparatively
large income of $225.000 year If the
gross earnings tax is collected The estl-
mate has been made that the city would
be paid So 600, 900 in the thirty-five years
| the franchise is to run If the gross earn
ings tax is enforced This is entirely too
small. The amount would be nearly $o,-
| 000, ,000
Streets Very Valuable
c. H. Hoff-The efforts being made in
behalf of the city to enforce the gross
/ earnings tax against the street railway
company is meeting with the approval OF
| the public There is a general opinion
| that the company should pay more tnan
regular taxes for the valuable privilege
| of using the streets. Not only should the
gross earnings tax be enforced, but the
| CITY council should retain the right to
| order future extensions. The street rail-
way company should under no considera-
| tions be given the right to use whatever
streets it desires.
Popular Desire for Tax
R. D. O'Brien. Assemblyman-So far as.
| I have heard the stand taken by the city
| council in its offer to the street railway
company of settlement is popular with
the people. There seems to be general
| demanded for the enforcement of the gross
earnings tax against the company. l be-
lieve that the council will maintain the
stand that it has taken if the public
shows that the attitude is correct.
Points Out Advantages
s. A. Ponthan, Deputy City Comptroller
The action of the council in upholding
the attitude of Corporation Attorney
Michael was great victory for the peo-
pie. Not only is it just that the COM
pany should be charged with the gross
earnings tax, but its payment of the
amount would be a great relief to the
taxpayers. With the st. Paul Gas Light
company and the city railway company
paying 5 per cent of their gross earnings
into the city treasury there would be
very considerable reduction in the tax
rate. A reduction in the taxes means an
increase in the value of real estate.