The Montgomery advertiser., 1906-01-30

the IOuDcil yleddS US p0bitiOH oh thS percentage of income.
 Of course, there are two sides to all questions, and this situation is no ex- ception. It is argued by the Traction Company and it's friends, that the Council is trying to hold up the com pany; that Tt is asking pay for fran chises given away years ago to other people; that it is standing in the way of the convenience Of the public and of the development of the city; that it is ! discouraging the entrance of foreign capital into Montgomery, etc.
 Now The Advertiser opposed the prop | osition to ask the Traction Company ! for a large lump sum in cash for the favors it asks, and 1t is glad that the Council has modified its views along l that line. But, on the contrary. it does seem that the Councils present propo- sition for one per cent of the street 1 railways gross income for the next ten years and two per cent there after, is very moderate and is altogether reasonable.
 Let us consider some of the argu- l tion.
 Is it "hoid-up%' Is it asking the existing owners to pay for franchises given away to other people years back? We think not. When the one company absorbs the other. and the two systems are united, much more valuable niece of property than existed before is thereby created. The new owners will practically control perpetual fran chise to the street railway business of Montgomery No other company will ever dream of trying to enter the field with the leading streets so thoroughly controlled. Within one year from the date of the complete junction of the two systems, the new owners will, in all probability, hold their splendid property at double it's present cost to | them Thus. virtually, a new piece of property is to be created by the Coun- ciTs action. Practically it is new franchise vastly more valuable than any given in the past to either of the old companies. Why, then, should not the city get something for 1t? Certain llv. if is fair and equitable. It is not |
 a hold-up.
 Rut 1t is argued that the Council is standing in the way of the publics convenience in getting transfers and i'm the way of the citys development If is true that transfers will benefit the public, and that the prosperity and growth of the street railway will bene- fit the city as a whole. But the street car people are not philanthropists' They are not proposing transfers and nlanning extensions merely for the love of Montgomery, but because 1t is to their business interest to do those things Recent experience in Montgom- cry alone has demonstrated the truth Of those views.
 The street ear people will do those things sooner or later as matter Of business, though for reasons of expe- diency, of effect on public opinion, they may delay them
 Again, is this attitude calculated to discourage the entrance of new capital into Montgomery? Is Montgomery proposing anything abnormal or extra ordinary? If not, then there is noth- ing in this bugaboo. It is our informa- tion that the city of Atlanta, on the consolidation of her systems got about s3oo. 900 benefit out of the new com pany. Certainly she got new street viaduct for Whitehall street which must have cost a large proportion of that sum. Then in Macon, Ga when con- solidation took place, the city got a considerable lump sum. Again, some years ago, New Orleans consolidated all the lines and disposed of the com bined franchises for very large sum
 All over the country there Is marked tendency for cities to secure in some way, an income out of all public utili- ties and especially street railways They are taking advantage of every op- nortunity fin that direction, because the very basis of the business of public utilities, and especially of street rall- ways is the use of the streets the nubIic's property. It will not be long before capital will be faced in every citv in the country with a demand for il part of the profits, If franchises Tor nublic utilities are asked for. Mont gomery Is not going to be hurt by max ing business-like. fair. moderate re- auirement, such as Is being proposed in the present case
 Now what is practically involved in the present difference between the street railway owners and the Council? Not much in money Our information is that the gross income of the two companies in the past year was about
 $l7O,OOO Probably in the next year 1t will be s2O0 900. One per cent of this will be s2,O0o. In ten years it is not
 likely to grow to over 5000 year. and
 after that it may be double that sum.
 Now is $2,OOO year for the present
 a fearful burden for a property to as-
 sume which has just sold for over a million dollars? As Montgomery grows. ; as the street railways income grows, as the property largely franchises, becomes worth two millions. three mil
 -F [,