Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1907-09-18
WOULD NOT TAX
PUBLIC UTILITIES
Allen Ripley Foote, OF Ohio,
suggests-Radical Departure
in Municipal Taxation
ADDRESSES AMERICAN LEAGUE
City Official. in Session at Norfolk TO
Discus. Municipal Reforms - Tax
Commissioner Of Ohio Presents New
Plan and Urge. II. Adoption-other
Addresses.

Norfolk, va, Sept. 1s-Officials from
many Of the cities of the country are
IN Norfolk in attendance upon the
convention Of the League of Ameri-
can Municipalities. The fact that the
meeting is held here at the time OF the
Jamestown exposition has caused
larger attendance than usual. Among
the speakers today were VIM. II. Al
len. Of New York, and Allen hlplev
Foote, president of the National TAX
Association. Allen discussed the Des
Moines And Galveston plans OF city
& government, and Foote spoke on the
subject of Low Rates for Public serv-
ice VS., Franchise Taxation" Mr.. Foote
ts cam missioner of the Ohio state
board OF commerce.
Foote Urges Tax Departures.
Allen Ripley Foote. speaking OF
.Iow Rates for Public Service VS..
Franchise Taxation" said:
.The most useful tax to place on
public service corporations is to re-
ouire them to provide a service capa-
CITY much greater than is sufficient 10
supply present demands. and to ex-
tend their service lines beyond pres
ent paying limits, thus causing them
to serve as a factor In Improving ana
building up the ever widening limits
of the municipality, increasing and dl-
versifying the industries Of Its inhab-
itants, and contributing to their. COM
fort and prosperity. investments In
pnbiic service utilities should be linz
tied only by the requirements TO pc
provided for, and the right of way for,
fheir service lines should be unob-
structed.
.Taxes upon the property Of pub
l,c service corporations not only en-
hance the cost of the users of the serv-
ices, but they accomplish this for tue
benefit Of non-users and alien proper
ty owners. All persons are not users
OF these services, nor is all property
owned by such users. but all property
within municipality is taxed. II the
property of public service corporations
is not taxed. the tax on all other prop-
erty may be increased trifle. This
increase would fall upon the property
Of non-users and alien owners and
equally with that OF users, but the US
ers of the services would be benefited
by the decreased cost Of the services
to them. When a user of a public
service votes to tax the property or
the franchise Of the corporation render
ing the service, he votes to reduce the
taxes Of non-users and alien property
owners and generously pays the
amount he thus saves for them out OF
his own pocket. Taxes on the means
by which supply for need is pro-
duced are a part Of the cost Of pro-
ducing the service.
'"rhe policy Of low taxes, or no taxes.
should not be adopted unless the in
terests Of the people are well safe
guarded by legal requirements that
will make it certain that they will re-
ceive off-setting advantages in cores
pondingly low charges for services rem
dered. The demands Of economic law
should find correct expression in the
conditions created by statutory laws.
services at the lowest practical price,
economic law requires:
"First-That public service cor
poration organized to supply perpet-
ual public need shall have the exclu-
sive right to supply such need per-
petually.
"Second-That all accounts shall be
honestly, and correctly kept; that eco
nonlic thrift shall be insisted upon in
every department; and that charges
for the use Of these services shall bear
a fixed relation to the cost Of produce
ton.
That the statistics Of municipal
affairs, and of public service utilities,
however. owned and operated, may be
properly developed, 1t is necessary that
the state shall establish department
of public accounting and inspection, as
an Independent department of state,
properly organized and equipped, to
cover all features of municipal affairs,
and Of the public utilities that supply
the public needs Of municipalities and
of their Inhabitants.
under a system Of state regulation,
such as is here advocated. every in
terest of users, Of municipalities and
Of the state, will be best served by
granting exclusive, perpetual and un-
taxed franchises to public service cor
porations. When operating under such
conditions, public service corporations
can render the best obtainable serv-
ice at the lowest profitable rates and
can satisfy the users of their services