The star and Newark advertiser. [volume] (Newark, N.J.) 1908-1909, 1909-03-06
NUGENT URGES
PASSAGE OF CAR
MILEAGE LEVY
In Exhaustive Opinion City
Counsel Says Project
Is Fair.
PUBLIC SERVICE AND BOARD
OF WORKS MAY CONFER
Official Suggests That Arrange
ment Can Be Brought About
in This Way.

The trolley ordinance for leyying a
D per cent. tax On the gross receipts If
the Public Service Corporation by the
track mileage method having been set
aside by the Court of Errors, City Coun-
sci Nugent last night gave an opinion
to the Common Council refrainfng from
suggesting that the car mileage method
be adopted, but declaring his belief that
it was absolutely fair to both sides. In
the meantime the trolley company is
acting under its original franchise,
granted In 1893.
The city counsePs opinion and his
statement of the status of the trolley
tax were referred to the finance com.
mittee of the Council. Mr.. Nugent also
suggested that the Board of Works and
the Public Service Corporation officials
confer over the proposed plan.
city CounseI's Statement.
City Counsel Nugent's statement was
as follows:
To. the Honorable the Common Council,
Newark, N. j.:
motion passed by your honorable
body on February 10 to advise
in writing the Common Council
Corporation using the streets and high
ways of the city. by what right and
under what contract or, conditions the
what revenue. If any,, the city is entitled
to receive for such use. and whether the
setting aside of said ordinance rehabil-
itates the contract between the Public
Service Corporation and the city, en-
tered into under the provisions of the
ordinance of July 10, 1893, and if SO, what
becomes of the franchises made per-
petual by the terms and conditions en-
tered into under the authority of the
said ordinance.
j will endeavor to answer this rather broad
proposition as l understand it.
Sna a G1mm report aSpn in 4 q A sfs dltS Rel el
porter, page 665. sets aside an ordinance
passed by the Board of Street and Water
Commissioners January 10. 1905, and APP
proved by the Mayor January 20, 1905.
This ordinance was intended to confirm
an agreement made between the city and
the North Jersey Street Railway Com
pany, whereby certain controversies be-
tween the two narties We're to be settled.
The three chief objects of controversy
/. The question whether the receipts
from street railway mileage in territory
annexed to the city Of Newark should be
included in the computation of the 8 per
cent. gross earnings to be received by
the city from the traction company,
under the provisions of the ordinance of
2. The method of computing the 5 per
cent. gross receipts.
q. Inc perpetudIlOn OF certain lfHlteu
franchises In annexed territory.
Annexed Territory.
The decision of the court places the city
in the same position as regards its right
to demand 5 per cent. of the gross re-
ceipts from passenger traffic in the an
o ornga Of January 70. 1905. What
ever right the city had to demand such
per cent. OF gross receipts IT. stu
company had to resist such demand still
This subject is a proper one for negotiation
between the city and the traction COM
pany.
Communication of the 5 Per Cent.
The method of computing the 5 per cent.
of gross receipts fixed in the ordinance
of January 20, 1905. now declared Invalid,
was the so-called track mileage. method
The traction company has since 1893 com
/puted the gross receipts poth by the
track mileage method and the. car mile
age method. What method should now
be adopted is a proper cubject of nego-
tiation between the city and the traction
company.
There are four methods by which 5 per
cent. gross receipts can be properly COM
puted. They are known as:
The pro rata method.
The car hour method.
The care mileage method.
The track mileage method.
A brief explanation nn3ing tSe Of 1 these eed -four qr mssho ras
ceipts Is appended:
Pro Rata Method.
The pro rata method Divide that the
traffic on each line, and the subdivisions
thereof, be accurately computed by actual
count Of passengers, as shown by the
registers in the cars. The gross receipts
from such traffic would then be divided
In the proportion that the tota! number
Of passengers carried in the city bears
to the total number of passengers carried
from end to end of the line.
This method of computation would involve
the employment of inspectors, and a con-
siderable amount of clerical work. but
n is the most scientific and accurate way
Of obtaining the correct basis upon which
fhe civ should receive its 5 per cent: of
gross receipts. II Is open to the objec-
fion of being cumbersome. expensive and
difficult to apply. The chief characteris-
fics Of this method is that the city's 8
ner cent. of the gross receipts is COM
puted on the basis Of traffic, which Is the
true intent and meaning of the clause
so often quoted;
& per cent. of its gross earnings
received from passenger traffic within
fhe city limits derived from lines upon
which electricity is used as a motive
car Hour Method.
BY this method the basis Of the S per