The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-03-02
A Lesson for Minneapolis.

St. Paul has a city council with a lit
tie fight in it and a corporation counsel
with good deal Of fight in him, and
they have been able to pull the city out
of pretty close quarters with the street
railway company with credit to them
selves and advantage to the people. Tho
Minneapolis city council might learn
something by casting its eyes toward
St. Paul.
About a year ago st. Paul sought to
bring the streetcar company under the
provisions of the new city charter,
which would have compelled the COM
pany to take its order as to extensions
from the council, and to pay a gross
earnings tax. The company went into
court on the matter and received from
Judge Lochren a decree which upheld
it's contentious at every point. The
city, however, had the right of appeal
and with this small ground to 60 on be-
gan negotiations with the company
which have just been concluded on
terms advantageous to st. Paul.
The city gets in addition to the shops
which it has longed for (and which it
will probably get at the expense Of this
city,, 100000 in cash for the Como pa
vilion, the cost Of tunneling Selby hill,
great many extensions and new lines,
the concession of ive-cent fare to
Fort Smelling, and on top Of it all a
gross earnings tax.
| In 1ot +bo ,,ofrf rp1,ioh bo
company stood out the longest. It said
at first it would never consent to the
principle Of gross earnings tax in ad-
dition to it's other taxes, and "saying
it would ne 'er consent, consented.' To
be sure the gross earnings tax is a COM
promise, but inasmuch as the whole deal
is compromise it is to be examined
fairly in connection with the other
items in the agreement. The company
agrees to pay the city in gross earnings
taxes the difference between it's real
taxes to the state, city and county and
6 per cent Of its gross earnings. The
taxes Of the company in st. Paul are
now about $4,000 and it's gross earn
ings $1,6oo,oO0. The present taxes are
thus seen to amount to about per
cent Of the gross earnings, so that ST.
Paul will realize an increase of about
l per cent.
But as the gross earnings Of the com
pany will increase rapidly and its real
estate and personal property taxes in
crease slowly, the advantage to the city
is greater than the immediate gain of
1 per cent. It is estimated that during
the life of the franchise it will be worth
$3,000,000 to the city.
The streetcar company, in addition
gives up in a large measure the Growing
commission it received from Judge
Lochren IS decree to build or extend or
any street it chose. The right is giver
the council to veto the use Of the
streets.
These are the concessions that st
Paul has secured by merely threatening
to appeal a lost lawsuit. It should
be remembered that the settlement wat
not made with company that was
seeking franchise, but with one al
ready on the ground, having large
bona-fde investment and intrenched be
hind decisions of the lower courts that
were against all the material conten
,, tions of the city. In this view
Of the case, the concessions thai
have been secured by the corporation
, counsel reflect the greatest credit upo1
his faithfulness to the people and hi
; skill in negotiations. ...
There is a lesson to Minneapolis i,
= the work that has been done in st. Paul
If our council is not to become know
= as the supine servant Of the street rail
: way company, it needs to bestir itsel
: to secure more frequent service an
' some other substantial concessions il
T. this citV.