Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-09-19

Problems
IN CITIES
LEAGUE OF AMERICAN
MUNICIPALITIES MEETS
To Discuss Questions of Vital
Importance to Urban Dwell
ersi Franchise Taxation of
Public Service Corporations.

Norfolk. Va. sept. ts.-Problems
" municipal government Of vital inn
portance To the cities Of the country
viii be fhreshed out during the scs
sions Of the eleventh annual conven-
ton of the League 90 American Mu-
inequalities. opening Ia Norfolk today
Mayor n municipal officials from
all parts u the United States are here
and were given a hearty reception. to-
days program including a visit 70 the
jamestown exposition. The conven-
ton viii close Saturday with the OBJ
servance of American municipal day
at the big fair.
Among the important matters To be
considered by the delegates * tina of
municipal government by commission
or board. usually known a. the Gal
weston plan. as against the method ot
government by mayor. cauncilmen and
aldermen Another subject which viii
come IN for serious consideration f.
that Of low fares for public service a.
against franchise taxation. the view
points u which for tho purpose OF
the discussion VIII be the suggestion
that ii Is ineuuitable To raise put-
lie revenues By franchise taxation Of
this nature at the expense Of low
fares and improved service. Another
important subject will be on the mer-
its u dement's Of municipal own6r-
ship 81 public utilities.
Allen Ripley F0ate. president a. the
National Tax association. and COM
missioner Of the Ohio state board n
commerce, delivered an address "a
the suhjeet Of Low Rates for Public
Service Versus Franchise Taxation.
Ihe most useful tax 10 place on
public service corporations" said he.
rs Ia require them % provide a serv-
Ice capacity much greater than is sur
hclent 60 supply present demands. and
10 extend their service lines beyond
present paying limits. thus causing
them to serve as "a factor in imurov-
ing and building up the ever widening
limits Of the municipality. increasing
and diyersifying the Industries Of its
Inhabitants and contributing 10 ther
comfort and prosperity. Investments
IN public service utilities should he
United only by the requirements 10
be provided Tor. and the right ~ way
Tor their service lines should be unob-
stt astt3.
Taxes upon the proncrtv ~ rubr.
service eornoratious uef 9Nl" cni.17ee
me cost OF the ufF Of tfr se-eine
but they accomplish This rur tas ta,.r
M OF nUu-uepr@ EUd Gffru UrapfFf~
owner All persons are not users nfl
These services, nor ia an property
owned. hH such users but an prop
eltA within "a municipality IS taxed I
II tho property ~ public service coz
Infations is NOT taxed the tax on aIf
other property may be Increased n
tfttie This Increase would faff unon
the property az uun-users aud alien 1
owners q equally with that uf users
but the users of the services would be
benefited By the decreased cost ~ thc
services 60 Them When a user nf a 7
uni service votes To tax the prom
ertv on the franchise ~ the curnoru
tion rendering the service he votes o.
reduce the taxes Of and
alien nN4AnNHNE NM mi A.Mw-..-HL-u
PAYS the amount hc thus saves fof
them out Of his own pocket Taxes on
The means nv which a supply for a
need Is produced are a part Of the
cost Of producing the service.
The policy Of low taxes. or uo
taxes. should not De- adapted unless
The Interests Of The people are well
by legal requirmnts thar
VIII make u certain that they will re-
ccive on-scttlng advantages in cor-
respondlnglN low charges FOR services
rendered. The demands or ounm
should md correct expression IN
the conditions treated by statutury
To secure thf best possible puh. T
lic services at the lowest practical
price, economic law requires
"Ftrst-That "a public service corr
poration organized TO- supply a pet-
pvtuai public need shall have tho ex
right To supply such need per.
Dstually.
'Second-That aii accounts shall he
honestly and correctly kept. that es0-
l'mic thriit shalt be Insisted upon iu
very department % that charge
the use of these ~srrvires shall
q fixed relation o. the necessary
.ost Of production
"A comparison ~ th-c economic
'onditions with the laws 81 al states
Nill clearly show how uniutcliigentlv ,
we'll meant efforts have horn directed
a ali attempts 60 secure fur public
private users fhp services SUP
piled hy public utilities bv placing de-
acndence upon the principle of COM
'Ftition instead Of the principle ~
governmental regulation.
That the statistic 81 municipal af-f
airs. and of public service utilities. /
however owned and operated. NAV 10
lroperis developed % IS necessary thar A.,
state shai establish a department (
. public accounting and Inspection. as
.n Independent department ~ state. 4
lroperiv organized b equipped. h. I.
over at features of municipal Affairs. Q
nf the public utilities that supply +
ne public needs Of muntelpalluus ana s
e their inhabitants +
"rndcr a system ~ state regulation. {
tNh as b. here advocated. every I'M d
crest 60 users - munlcinatlics and u
Y the state. viii he best SERVED hv z
.rautiuE exclusive. perpetual aud un- Is
aNed franchises % public service b
'oratinna Then operating under such 81
undiilons public service onrunrafIan4 z
an render the best nbtafnahIe serx- =
c. az the Lowest profitable rates ant s
an satisfy The users ~ THEM services Z
hat they are doing m II
That state which first succeeds fn q
atelllEcntly chanEing lts ststem. or r
ant uf system. or organizing and reg oil
lat'ng public service Operations -
q wstem ln conformity with
p HhHiints herein given viii b. fhe