The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1904-05-17
SUIT MEANS TEST
OF STREET CAR TAX
Nonresident Asks the Federal
Court to Grant an In
junction.

A suit filed in the federal circuit court
In ST. Paul yesterday by Howard d. Bal
ley, an alleged resident Of Douglas coun-
ty, Wisconsin, asks for an order of the
court restraining the st. Paul City Rail
way company from extending its line on
Rondo street from its present terminus
at Avon street. Bailey owns property on
Rondo street, near ChatSWorth, on the
line OF the proposed extension, and con-
TENDS that the company has no right, I'M
der the existing laws and the city char
ter to make the extension.
Such suit was not unexpected, it hav-
ing been evident from the course that has
oeen pursued by the street railway COM
pany that it was preparing for a contest
1n-Ihe courts, and of course the company
mas much to gain by bringing the action
IN the United States courts. Preparations
Tor the action were made by placing ma
terlaI along the route of a number OF pro-
posed extensions, annd the filing of the
S 81 IN the United States court is evident
torney ]. c. Michael, representing the
city, out of the proceedings
1t has been matter of knowledge with
Mr. Michael for some time that he could
at any time expect the company to get
INTO the courts, it being known that the
city would not be able to enforce the
per cent gross earnings tax fixed by the
CITY charter without first making a fight
IN the courts. AS Attorney Mum has
upon numerous occasions promised that
the case would soon be in the courts it is
assumed by many people that the action
the company, and that the fact that he
is nonresident makes his service Of
more value to the company.
Bailey Sets Forth His Rights.
The petitioner in his complaint sets
forth his rights to sue in the matter by
asserting that he is the owner of lot on
Rondo street, and that he objects to hav-
ing the car line pass in front of it. He
contends that he is the owner Of the
street to the center line subject only to
the easement of the city for street pur-
poses and free from any right of the street
car company to occupy it with its tracks.
Such occupancy, he declares, would be to
his damage in the sum of $4,000, and the
court is asked to restrain the company
from continuing the work of extending
its lines along this street.
1t is alleged that on or about May T.,
1904, the defendant, with its agents,
teams and tools, wrongfully and unlaW-
fully, and without the consent Of com
plainant, and without any authority so
of and upon the property of this com
plainant, and engaged in the construction
of a line of street railway having double
tracks; that the defendant now threatens,
and is proceeding to dig up the soil on
| the street in front of his property, set
poles and string electric wires thereon,
lay down ties and rails and to operate a
| line of street railway upon said Rondo
street in front of the property Of this
complainant; and threatens and is about
to lay double tracks so that at least one
track will be upon that portion of Rondo
street, the fee of which is owned by the
complainant thereby appropriating that
part of the street to the use of the de-
| PENDANT. Bailey complains that all of this
| is without authority of law, and prayS
the United States federal court to at once
| restrain the company from treSpaSsing
upon the street.
Issue With City VIII Be On Trial.
In the hearing Of the argument for and
against the motion to grant the injunction
the entire issue with the city will be
placed on trial, and it is possible that
| the outcome may settle the issue one way
or another. This means that a test is to
be made on the charter provision adopted
four years ago, and in which it is provided
that all corporations securing public
service franchises after that time would
be subject to a per cent tax on the
Michael has held that If the street railway
company extends a line with the consent
of the city council it's entire system will
be subject to the tax.
1t has been known for some time that
the street railway company will go into
court with the general broad proposition
| that the imposition of the per cent
gross earnings tax will compel it to pay
| double taxes. as the payment of the gross
earnings will not relieve them from the
| payment of regular taxes.
Corporation Attorney Michael stated
when seen that while the city is not di-
Tectly concerned in the case, he will see
| to 1t that its interests are protected, and
| that if it is possible for him to enter into
| the case he will do so, and do his best
to prevent judgment being given that
will permit the street railway company
| to construct the extension without per-
| mission from the city council. Mr..
Michael is and has been confident that he
| will ultimately win the case, and that
| the street railway company will be COM
PEELED to pay the gross earnings tax.