The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1905-03-04

II Is DeCODll1lS llldl the city
council in rushing through the COM
promise resolution with the. st. Paul
railway company did not fully compre-
bend that there would be no gross
earnings tax for the city in 1906.
In the opinion of County Assessor
z. Conley and others familiar with the
system of taxation the st. Paul City
railway company will, by the terms Of
the compromise, avoid the payment OF
any gross earnings tax as the general
tax will exceed per cent Of the gross
earnings
The records of the county assessors
office prove that the assessed valuation
of the street railway company has been
increased at the rate of about 100000
a year since 1900. From this the as
SCISSOR estimates that without taking
into consideration the $2,000,000 to 3d.
100000 improvements contemplated for
the year 1905, the assessed valuation
of the company for 1906 will approx
mate $4000000, upon which the gen.
eral tax is estimated in round figures
at $108,000.
The statement Of Corporation Attor-
ney Michael before the city council
that the increase in gross earnings Of
the company was about per cent
year, indicates that their gross earn
iings for 1906, estimated on that basis,
nOulu ilOl tANcCu fOsVVO, pei
of which is S106,500.
Compromise Worth Nothing
These figures, as computed along the
lines laid down by Mr.. Michael and Mr..
Conley, show that the general tax of
the company for 1906 will exceed 6 per
cent of the gross earnings by $1,000,
and that the city will receive no gross
earnings tax, and thereby profit moth
ing by that clause of the compromise
resolution.
The assessor also carefully pointed
out the fact that it would be impossible
for the city to arbitrarily reduce the
assessed valuation on the compsny's
property in order to secure a gross
earnings tax. He showed that while
the city would make money by such
move, as the state secures none Of the
gross earnings tax, but portion of the
general tax, the state board of equali-
cation would not permit it.
What Has City Gained
With no gross earnings tax then, the
people of St. Paul are beginning to in
quire what the city gained by the COM
promise commensurate in any degree
to the benefits accorded to the street
railway company.
The large improvements to be made
by the company are only to be such as
they offered to make, with the possible
exception of tunneling the Selby ave-
nue. hill, and here an investigation Of
the proposition indicates, according to
the opinion of a prominent local civil
engineer, that the company will ulti-
mately make money by constructing
the tunnel. 1t was estimated by this
engineer that the cost of the tunnel
would probably not exceed $4,000,
unless unforeseen rock formations were
encountered. The expense of main
tanning the present system Of moving
the cars up and down the hill approx
mate $4,000 a year, which would be
entirely eliminated with the construc-
ton of the tunnel.
In exchange for a gross earnings
tax, based upon computations indi-
eating that there will be no such tax
at least for 1906; the tunneling of Sell
by avenue hill, which appears to be
a good business proposition on the
part of the railway company, and an
agreement on the part OF the company
to waive the right it has always
claimed of building tracks upon any
streets it chose, the city has granted
to the St Paul City railway company:
What the City Gives Up
First-Practically an exclusive fran
chise for thirty-four years, as the re-
linquiShment of the rowing license"
was upon condition that no other COM
pany should secure a franchise for the
building of overhead, underground or
surface street car lines on any street
in the city. If any such franchise is
granted, then the clause provides that
the waving of the right to build on
any street it pleased on the part of the
company shall be no longer in force
or effect. ..
Second-The st. Paul City railway
company retains the right to build ex-
tensions on any street it occupies
without securing permission of the city
council. This means that a suburban
residence street of the city may be in
vaded by the company at any time
despite the protests of the property
owners, providing the street car tracks
are laid upon some downtown section
of the street.
Thlrd-The granting to the company
the perpetual privilege of Occupying
st. Peter street at any time but re-
curing them to build no car line there
why was this compromise resolu-
ton granting the company SO much
and the city so little rushed through
the city council without giving the
people chance of indorsing or re-
Jecting 1t, was the question put by +.
M. Dolan, president of the Eighth
Ward Improvement association.
without going into the details of
the resolution or commenting extern
sively on the respective benefits ac-
cruing either to the city or the COM
pany. Mr.. Dolan could conceive of no
good reason for the council not giving
the people chance to express their
approval or disapproval of the meas
ure.
Says Matter Is Settled
The matter is all settled now" said
Sr. Dolan, and there is no use of
complaining about the provisions of
the agreement, but the people of the
Eighth ward We're interested in the
settlement of the controversy and if we