The Saint Paul globe., 1904-12-08
Would curtaiI Extensions


mo" answered the Mr.. Mum. "The
company would not make the extern
sions if by doing so we would be sub
jected to the restrictive provisions of
the charter
VIII the company come under the
charter to the extent of agreeing to
pay the 5 per cent gross earnings
taxi" asked Aid. Lynch.
The street railway company will
not agree to the imposition of the
gross earnings tax and will not con-
cede the right of the city council to
regulate the fares answered Mr..
Mum. The tax imposed on the COM
pany on an ad valofem basis amounts
to about 61s per cent of its gross in
come. II the per cent is added to
this the company would be paying
11h per cent Added to this is the
fact that the company spends III per
cent of it's gross income on the paving
of streets. This would mean a tax of
about 20 per cent. 1t is well known
that no business can stand such tax.
If the company is allowed to go ahead
it will spend the $2,000,000, and it is
likely that the taxes of the company
will be increased about $50, 600 through
the regular channels. The gross earn
ingS tax would at this time amount to
about $4,000 a year.
Mr.. Mum made a special plea for
lenient treatment of the company. He
asserted that the constant changes in
street car travel has resulted in the
company having an Indebtedness of
$10,000,000. He spoke particularly of
the changes from horse cars to cable
lines, and later the substitution of
electricity for the cables. This had re-
suited in the expenditure of vast sums.
Only during the past four years have
the stockholders received interest on
their investment.
do you mean to say that the $2000,-
000 that you are to invest will pay
two-thirds of the taxes and represent
that proportion of the value of the
property of the company" asked Aid.
Lynch.
81 was presuming that the property
would be assessed at its cost" answer
ed Mr.. Mum.
New Lines Planned
In stating the improvements that the
company proposes to make, Mr.. Mum
once said that the company proposes
to construct the fourth interurban line
by way of Fort Smelling. Later he
was questioned on this point and as
serted that it is merely the intention
of the company to extend the line
across the bridge to the fort. Mr..
Mum declared that he had incorrectly
stated the intention of the company in
the first instance. Several aldermen
were objecting to the proposal to have
an interurban line by way of the fort
After being generally catechised Mr.
Mum made the statement that the
company will, as compromise with
the city, construct the shops. AT no
time will there be less than 1,500 men
employed. The Marshall avenue bridge
will be widened and strengthened TO
accommodate the third interurban line
The Rondo street line will be extended,
the Lafayette will be run to Phalen
park, the West st. Paul line extended
to South ST. Paul, a cross town line
will be constructed wherever the city
dictates and the company will pay a
fair proportion of the cost of widening
Sibley street.
Corporation Attorney Michael fol-
lowed closely the argument he used
before Judge Lochren, ridiculing the
claim of the company that it would re-
fuse to make extensions if the decision
of the higher courts should be in favor
of the city. Barring instructions from
the council. he proposed to appeal from
the decision of Judge Lochren.
If one of the principal contentious
of the city, that the street railway COM
pany is merely a trespasser on the
streets, should be upheld, the company