Omaha daily bee., 1909-07-02
No ACTION on TAX BILLS
Council Waits Ten Days for Will
Herdmsn Of Gas Company.
HE WRITES TO PHILADELPHIA
Says it VIII Fake That Long to Hear
water Company H. indifferent
and Nash Opposes Occupa-
tion Tax.

Final action on the proposed occupation
tax ordinances has been postponed to
Wednesday. July IA. when the council will
again meet in special session.
The postponement was made largely on
the request OF Will Herdman, attorney for
the Omaha Gas company, VINO said he
would have to send to Philadelphia to find
ont what the operating expenses Of the
company were for last year. This would
take a week or ten days, he said.
The resolution postponing action for two
weeks states explicitly that this will be the
last postponemcnt and tina the affected
companies undoubtedly will be given no
more time for argument after that date.
Argument was offered Thursday morning
before tho city council on the occupation
tax ordinances affecting water and electric
light companies.
In the argument Thursday the Omaha
Water company was represented by E. NJ.
Fairfield, local manager, and the Omaha
Electric Light and Power company by F.
A. Nash. president. These officials argued
against the ordinances, Harry B. Zimman,
former councilman, speaking for the meas
ures. Representatives OF other public
service franchised corporations we're pres
ent at the session.
We Don't Care, Says Fairfield.
You can do as you choose with these
ordinances" Manager Fairfield Of the
water company told the council. I'VE do
not care much one way or the other
whether you pass them or not, as We will
not pay the tax anyway"
He said that the company is now paying
the city about u per cent per annum in
the way of free water furnished; that it
takes many years for public service cor
porations to earn profits and that in thir-
teen years the company had paid in dlvi-
dends only" 500, 600.
5 Following the argument of Mr.. Nash
I and the reply OF Mr.. Zimman to both COM
a panies, Councilman McGovern called Mr..
e Fairfield back for further questioning.
3 One of the questions the councilman asked
I was IL the manager did not think that his
company ought to pay the city something
: for the use Of the streets for the mains
$ used in carrying water to South Omaha
S but Mr.. Fairfield thought not, saying that
I the company was paying for the streets
by furnishing water free to drinking foun.
4 tains.
d How many of these free drinking foun.
e tains have you shut the water off from, d
Is asked Mr.. McGovern.
About sixty" replied the manager.
h And still you think you are paying the
city in water all it ought to receive in re
d turn for the use of the streets?'
Il most certainly do" said Mr.. Fair
field. The quantity OF water Furnished
, is entirely immateriai. The fact is. tn,
company is not making any money abov,
expenses and improvements"
We'll" said Mr.. McGovern, "you ar,
not paying out any money in Omaha ii
the way OF improvements"
And the argument was closed.
Nash Injects Politics Into IL.
r President Nash OF the electric light com
pany told the councilmen that 1t would d.
them no good to pass the ordinances, a
ie they would get no credit for 1t.
ID This occupation tax theory has bee
proclaimed and threshed over in the pa
ls pers for a matter of six months, but tn
r people do not seem to be greatly intereste
in 1t, as there is not a single representa-
III tive taxpayer at the hearing" said Nj
st Nash. The truth is that the occupatio
er tax discussion was started by Harry Tin
r man.
n Il have been accused OF owning Harr
ne Zimman," continued Mr.. Nash, but 1 war
'n to proclaim right here and now that 1 d
not, never have and never want TO own c
is control him"
SIX Mr.. Nash said that in the ten years h
has been with the company he has NJ
on drawn 81 in d~ividends.
rs Mr.. Zimman spoke briefly and replied
ts' the water and light companies at the san
time.
IE LAS long as the Omaha Water compan
and not the city, has the key to the cas-
u" drawer. II is no more than fair that II
company should pay the city a royalty
he said. The water company has not pa.
d, 81 to the city. its franchise has expire
and it should be compelled to pay tn
EST tax"
Value of n Franchise.
VI The value OF a franchise Is true vii
ne all companies. and II 1t Is true that Il
ne electric light company makes no money
Tor street lighting, its street lighting contra
~ is valuable nevertheless, as 1t keeps d
he competition"
In answering President Nash, who 4
led Jected politics into the discussion, Mr.. zir
ny man said he would announce for the ga
no ticular benefit Of the president Of the ele
trio light company that he will not be
he candidate for any office this fall or In Il
ed city campaign three years from now Al