The Newark star and Newark advertiser. [volume] (Newark, N.J.) 1909-1909, 1909-04-15
BOARD OF TRADE
ASKS NEW TAX ON
PUBLIC SERVICE
Would Assess Corporation Ac-
cording to Population, In
stead OF by Mileage.
WOULD ADD S66,44O
TO CITY ANNUALLY
Report On Subject Printed and
Will Be Discussed at a SUBJ
ssequent Meeting.

n AL n AiitAtf Il P6S iAitO )1S~~p# $3.50
net the city $66, 440. IS yearly more thar
at present from the trolley receipts, was
put forward by the committee on mu-
nicipal affairs at the meeting last
night of the Board of Trade. This plan
appeared in a report which was read by
Lathrop Anderson, chairman of the
committee. 1t is to tax the Public Serv-
ice Railway Company on the basis of
population, instead of the 5 per cent.
franchise tax on car or track mileage.
For the year ending April 80, 1908, the
city received $50, 654.S8 That was on
the car mileage plan. 1t would have
received S153, 0s5.0s upon the basis of
taxation, according to population.
In support of the plan 1t puts forward
the report says:
Such a method permits of indefinite
expansion or contraction without favor
and without restriction"
To Print Report.
Mr.. Anderson, after the report had
been read. declared that it was not his
intention to ave the Board of Trade
express its opinion of the report by
vote Immediately and suggested that it
would be a good theme for a subse-
auent meeting. 1t was then decided to
have the report printed.
The report in full is as follows:
9TH committee on municipal affairs
would report having given consideration TO
the questions involved under the terms of
an ordinance adopted July ID. 1893, be-
tween the City of Newark and the Con-
Jersey Street Railway Company. in which
an allowance is provided for that the city
shall receive 8 per cent Of the gross
within the limits of the city
Your committee interested itself during
the public hearings granted by the COM e M
and ordinance OF January II. 1905, which
ordinance was subsequently set aside by
The Board of Works has now under
consideration the question of effecting a
conditional agreement as to how the gross
receipts shall be computed and determined.
under which the 8 per cent. allowance t9
tho city shall be paid henceforth. Several
methods ore proposed and are known as
follows: The pro rata method, the car hour
track mileage method. the latter being tho
method adopted under which payments are
now n1ade to the city.
First and most important, your com
mittee would advise this Board of Trade
not TO sanction any agreement on behalf
Of the city of Newark which would create
q perpetual franchise out Of one now
limited. With this provision guarded
that the best method which can be adopted
Is the one based upon population Such a
contraction without favor and without re-
striction: 1t comedies to the trolley COM
pany the same, rights reserved to the
improvements in service without regard to
the amount OF the 5 per cent. allowance.
1T will permit of the diverting of the route
or terminal of any of the present lines, and
in the Judgment of your committee X is the
most equitable plan which can be adopted
to insure to the city all that is due without
taking from the C0rpOr3tj0u more than II
has agreed to pay.
Track Mileage.
Under the track mileage plan it has. been
shown that the gross receipts of the thirteen
I lines ye rnne endfins In A ana Gut 1895 Ct Sawapf; to- 20
s3.654, 104. 49, percentage of amount subject to
5 per cent. tax is AZ 1-3 per cent, amounting
to 81, 7Ss, 0S7.7S. The 5 per cent. allowance
on this sum paid to the city was $50. 654. 38.
This payment represented 21-S per cent. of
the gross receipts on the thirteen lines,
which per cent, in the Judgment Of your
of Newark should receive from the actual
amount of traffic.
In the second exhibit appended to this
report q record is made of the eight trolley
lines operating within the city of Newark,
on which the city receives 5 per cent. of the
gross receipts. The operation of these lines
Gross receipts. sS7s.s2s.52; percentage Of
amount subject to 5 per cent. tax, $685.
s2S.52; amount paid to the city under the
D per cent. ALLOWANCE, So5,Sto.fS.
The twenty-one lines included in the two
exhibits represent a gross earnings amount
ing to s, 1888, 033. OF, the city receiving a total
of $120, 600.S0. representing a total paid to
Newark Of 5 per cent. Of 5o1a per cent. OF
the gross receipts, or a general average on
the twenty-one lines of ~ per cent.
Tho adoption Of a method for computing
and determining under which the 8 per
cent. allowance shall be paid, based upon
population, in and out of the city, accord
ing to the territory covered by the several
lines. would have resulted in the city re-
ceiving more just and equitable apportion-
ment.
I'm making up his exhibit your com
mittee has endeavored to make every fea-
sOnable allowance, covering changing condi-
lions with respect to the population within
and without the city
Population Growing.
"a study Of the trend Of population indi-
Gates that the population of the city OF
Newark has increased during the past three
decades at a rate of from 30 per cent. to
80 per cent. each decade, while the popula'
ton in suburban outlying sections shows
an increase OF from 30 per cent. to as high
as 100 per cent, and the. outlook wouid
Indicate that the outlying sections VIII in
crease much more rapidly IL proportion tc
the increase within the city, thereby lessen
ing the payment proportionately with the
adjustment of population.
I'VE assume, and We think correctly so
that a given hundred of the population In