Omaha daily bee., 1909-07-15
WARM DEBATE, LIE PASSED
Corporations Resist Occupation Tax
and Councilmen Wrangle.
EXCHANGE SHORT, UGLY WORDS
One Public Service Man Says He
Won't, Another He Can't Pay
Tax and Another IL Giving
Away His Service.

them claimed to be broke, however.
Behind locked doors, with all but them-
selves excluded, the city counctl discussed
the occupation tax ordinances.
The discussion waxed warm and ere 1t
was over one councilman mad called an
other a liar. This short and ugly word
was exchanged between Messrs. Bridges
and F~unkhouser.
In the executive session Councilmen
Berka and sheldon sought to fix the tax
at 21h per cent, while Councilmen Bridges
and Schroeder, backed by Councilman
Davis, took the other tack and sought to
have the tax fixed at B per cent.
Councilman Berka moved that the occu-
patton tax Of all companies except the
electric light and gas companies be fixed
at 21S per cent This was seconded by
Councilman Sheldon. Councilman Bridges
Immediately amended the motion to fix
the tax at 5 per cent. Councilman Schroeder
seconded the motion, but when it was
put to a vote the mover and seconder to-
gether with Councilman Davis were the
only ones to vote for it, all of the other
councilmen voting against it.
Burmester IL from Missouri.
After his vote President Burmester, in
discussing the question, said that no one
Ldu bilOWu lllh AilaN a "a VI y pCA NSAAN
would be Just. Councilman Bridges re-
Piled by asking IL any one had shown
him that such a tax would be unjust. The
discussion became more heated and before
1t subsidized Councilmen Bridges and Funk
houser had passed the lie. During the
course Of this discussion Councilman
Bridges asked Councilman m If 1t
was not a fact that Hummel had made
open statements to the effect that he was
in favor Of and would vote for a 5 per cent
tax, but Councilman Hummel failed to
reply.
Prior to the executive session the coun-
Gil received reports from all but two OF
the public service franchised corporations
and listened to arguments by representa-
tlves Of three of the companies.
Adjournment was taken until Wednesday,
July p.
VIII Herdman, attorney for the Omaha
Gas company, was the first speaker in
the open session and in the course OF
his made the statement that
the gas company could not stand a tax
any heavier than that now being paid.
The company pays a royalty to the city
which last year amounted to $3.50 and
Mr.. Herdman said that dividends had never
been paid on common stock and no divi-
dends had been paid on preferred stock
In the last six years.
F. A. Nash, president Of the Omaha Elec-
trio Light and Power company, followed
Mr.. Herdman.
I'VE light the streets of the city at very
nearly the cost price, said Mr.. Nash,
"and what we propose to do is to make
you a proposition to continue the present
lighting contract and to light your streets
-. - II NIA 4A,.-A W. -
willing to pay an occupation tax of 3 pei
cent and to make a contract for street
lighting that will not be one nickel
above actual cost"
Says They Can't Do 1t.
f. M. Fairfield, manager of the Omaha
Water company, told the council that his
company is operating under a contract
which cannot be changed without the con-
sent of both parties, and reiterated the
statement that the council could pass the
occupation tax ordinances if it wanted to
as the water company does not propose &c
pay it as the city has bought the system.
According to statements furnished the
council by the affected companies the
Omaha Electric Light and Power company
last year made the most money. This COM
pany's statement shows a surplus OF
SSO, SbA. Inc SUI Iluo Va AhV OAihoiA N
Council Bluffs Street Railway company
for 1908 was S22, 6SO,6S; that of the Omaha
Gas company was SIP, 400. SO, and that OF
the Western Union Telegraph company
was N,O77.S4. Adding the dividends in as
expenses, as did all the companies in he'll
statements, the Nebraska Telephone com
pany shows a deficit of $S4,S12.S2. The In
dependent Telephone company also shows
a deficit, its deficit on 1908 business beinl
s24, 1877. 49,. Royalties due the city but no
paid are added in the Independents ex
penses.
Manager Fairfield of. the Omaha Watel
company said ne had sent the city olerl
a statement of receipts and expenditure
! of his company, but the clerk neglected
to forward 1t to the council, and the Posta
Telegraph company failed to furnish a re
port.
Summary of Statements.
The statements Of the companies arr
summarized as follows:
STREET RAILWAY COMPANY