The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1904-02-04

Twin City Rapid Transit company,
was charged with bad faith in connec-
ton with his promise to erect shops in
ST. Paul, at the meeting of the Com
mercial club last night, called for the
purpose of discussing the street rail-
way proposition and its liability to the
city regarding the 5 per cent gross
earnings tax.
One of the arguments made in favor
of the city waving it's right to compel
the company to pay the gross earnings
tax was the contemplated erection in
this city of the street-railway shops, it
being stated by speakers faVoring the
waving of the tax that the removal of
the shops from Minneapolis to St. Paul
would mean employment for from 800
to 1000 men.
E. A. Paradis, Of Midway, took ex-
ception to the statement that the bene-
fit to be derived from the improve
ments that the company would make
would be of more value to the city
than the gross earnings tax. He de-
clared there was no evidence to show
that Mr.. Lowry contemplated the con-
struction of shops on Smelling avenue.
Much has been said about the re-
moyal of the street railway shops from
Minneapolis to st. Paul." said Mr.. Par
ads, but there is no evidence to show
that Mr.. Lowry intends to construct
anything more than car barns on
Smelling avenue. We have no evidence
that the shops will be built, nor is
| there anything to show that a large
number of men will be employed.
If the people of st. Paul permit the
street railway company to locate car
barns On Smelling and cover the cross
streets with switch tracks they will
| soon find that they have driven the
trade Of the Merriam Park people to
Minneapolis just as the Minnesota
Transfer has turned to Minneapo
the trade Of the people of st. Anthony
Park. Out in Merriam Park there are
more than 5000 people, all good citi-
zens whe now trade in st. Paul but
the location of car barns and switch
tracks out on Smelling avenue and
other cross streets will result in these
people going to Minneapolis
Before the city valves any rights
10 the company there should be some
definite understanding as to just what
benefits the city is to receive in return.
Too much faith should not be placed
In mere promises, which could easily
be broken after the company had Sc
cured what 1T desired from the city. II
Is matter which should not be acted
| upon too hastily"
Reviews Company's Development.
Judge w. Willis, who presided at the
| meeting last night stated that the OBJ
Ject OF the discussion was to secure
opinions from the members of the club
as to what action should be taken bv
the city with reference to the refusal
OF the street railway company to make
any improvements in st. Paul unless
the city waived its right to collect the
per cent gross earnings tax
In way of explanation of the problem
winch contronts the city, Judge Willis
gave a brief history of the street rail-
way company from the time of it's first
| organization down to the present time
The problem, as it presents itself to-
DAY, is one that is of much interest TO
st. Paul" said Judge Willis. 1--WE have
| reached the stage where the facilities
OF the company are inadequate. Cross
town lines, another interurban and
other extensions are needed They are
demanded by the people, and would
prove profitable to the company. But
Inc gross earnings tax is an obstacle to
these improvements
Corporation Attorney Michael holds
| that the building of new lines or the
extension of any Of the present lines
WITHIN St Paul would render the
company liable to the city for a s ner
cent gross earnings tax, and the com
pany declines to assume such a re-
spensib1iitX. Mr.. Lowry says he can
| not make any improvements without
| assuming this liability, which he re-
| fuses to do
TT has been suggested that the
council might grant a franchise to
some other company, or that the city
] might construct its own street railway
| system. In this connection I will say
| that the city has a perfect right to
grant franchise to any other corpora
! ton, and the charter commission, now
! in session, could provide for the con-
struction of a system by the city.
Sentiment should not be permitted
| to enter into this matter. 1 believe
we should look at it from a strictly
| business standpoint, and bear in mind
| the best interests of the city of ST.
| Paul"
do 1 understand that the extension
| by the company of single line would
| render the company liable for the 5
| per cent tax upon it's entire system in
| st. Paul?" inquired D. F. Reese.
THAT is the opinion of the corpora
ton attorney replied Judge Willis.
What would the additional tax
| amount to per year?" asked a mem
| Der.
1T has been figured out that it
! would amount to $4,000 on the earn
| ings of the company last year." said
Judge Willis.
| Secretary Slime was called upon to