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

read the letter sent by Mr.. Lowry to
Mayor Smith and the common coun-
ell, in which the company declared 1t
would make no more Improvements If
it were compelled to pay the gross
earnings tax.
Favors Waving the Tax.
H. w Phillips was in favor of waiv-
ing the tax, providing the corporation
attorney was correct in his opinion
that the company could not be COM
PEELED to make any additional improve
mentS.
Unless this gross earnings tax is
waived" said Mr.. Phillips. there will
be no street car improvements in st.
Paul until the expiration of the pres
ent franchise in 1889. / believe the char
ter should be amended in such a man
ner as to modify the provisions re-
curing such a tax, and L would be
in favor of this club making such a
recommendation to the city council and
charter commission"
D. A. Abbott, q member Of the ex-
ecutiVe committee of the Commercial
club read a resolution which had
been passed by the executive commit
tee, by which the council was request
ed to take the mater up at an early
date and ascertain the exact status of
the situation
The city development committee has
had this matter under consideration
several weeks" said Mr.. Abbott, "and
faVors the encouragement of the COM
pany's shops in this city. 1t will mean
the employment of from 500 to 1000
men, and will be a great help to the
city. 1t must be admitted that this is
a critical period in the history of the
city, and we should make no mistakes.
We want street railway Improvements.
but if we insist upon this tax We may
have to wait some thirty-fiYe years
before getting them. The company
says the profits from all of it's pro-.
posed new lines would not be large
enough to pay the gross earnings tax.
and 1t will not make these improve
mentS when it means such loss to it.
Il believe that st. Paul should waive
its right to collect this tax. We want
the improvements. We want the shops.
There is already a movement on foot
in Minneapolis to prevent the removal
of the shops to st. Paul and every
pressure will be brought to bear upon
Mr.. Lowry to have him keep the shops
in Minneapolis. St Paul should not do
anything to discourage the removal of
the shops to this city. The improve
ments contemplated by the company
will be of far more benefit to the city
than the gross earnings tax, even If
the company should pay it.
Il understand that the case is to
be tested in the courts by making an
extension of the Concord street line
far in antagoniZing this corporation.
Mr.. Lowry, although a resident of Min
neapOlis, has the welfare of St. Paul
at heart"
The resolution read by Mr.. Abbott
and afterward adopted by the club
refers the matter to the common coun-
Gil, as follows:
Resolved, That it is the sense of the
board Of directors of the st. Paul Com
mercial club that the common council of
the city should take such appropriate
official action as will permit the earliest
adjudication of its authority to request
the St. Paul City Railway company to
extend its lines in said city in any respect,
and under what circumstances the charter
provisions with respect to gross earnings
become applicable.
Suggests a Municipal System.
D. R. McGinnis, of Kalispen, Mont,
formerly a resident of st. Paul and
secretary of the Commercial club, was
present at the meeting and evinced
lively interest in the proposition. He
suggested a municipal street car sys-
tenn as a solution of the problem.
TT appears to me that this is st.
PauPs golden opportunity" said Mr..
McGinniS. Let the city build It's own
system and give the children and work.
ing people 2-cent fares. Some time
ago an effort was made to interest
Eastern capital in bridling the power
of ST. Croix falls, and $2,500,000 was
almost secured for this purpose when
the enterprise was blocked by we'll
known citizen Of the Northwest, and
nothing came of the effort That power
is still there, $4,000 horsepower, going
to waste. 1t would be a great thing
for ST. Paul if 1t were to be put to
some use, for with the high price OF
coal and power here its value could
hardly be estimated"
Corporation Attorney Michael was
at the meeting, but declined to talk
regarding the street car proposition,
remarking that he did not believe it
would be proper for him to do so, mas
much as it was to come before him
later.
The resolution passed at the meet
ing will be sent to the council before
the next meeting of that body. =s'--