Evening journal., 1911-04-10
WANTSPAY FOR
FRANCHISES
Mayor Thinks Two Per Cent.
Of Gross Receipts Should
be Paid by Railways
AND NOT MERELY BE
A PART OF THEIR TAXES

~ oN'Nidi n'tllHE nelQ on sat-
urday night. at which were present
Mayor Spruance and tho members OF
the Street and Sewer Department, the
veto by the Mayor OF the franchises
granted by that body to the Winnings
ton and Southern Railway Company,
was discussed. The Mayor on Satur-
day returned both franchises with his
veto, the first providing a general
franchise to cover several which the
company now possesses and the Sec
ond to allow the New Castle trolly
company TO enter the city by way OF
Market street to Front and Market
streets.
The Mayors veto came as surprise
to the members OF the Street and
Sewer directors and they held a con-
ference at noon. II was then decided
to hold a special meeting in the even-
ing and invite the Mayor to be pres
ent AS a result of this meeting It is
likely that the Street and Sewer dl-
rectors and the Mayor Will come TO
some satisfactory solution Of the mat
ter and another meeting for this pur-
pose will probably be held within n
day or two.
Charged Against Taxes.
The Mayor withdrew his veto and
the Street and Sewer Commissioner
voted to reconsider both franchises
so that the way Is now open for more
discussion on them
The Mayor disapproved the fran
chises granted to the companies on
several grounds. most important OF
which was the compensation the city
was TO receive for the franchises. He
objected TO the wording OF the clause
IN which It was provided that the
companies should pay to the city two
per cent of their gross receipts.
This clause provides that two per
cent. OF the gross receipts shall be
paid to the city the amount thus paid
TO be credited to the companies
against other taxes that might be
|, levied against them.
According 20 this plan the city
would get only the taxes charged
against the companies and the differ
2 ence between that amount and the TIVE
per cent OF the gross receipts I
the two per cent of the gross receipt
did not exceed the amount of III
taxes. the city would get no more thar
the amount of the taxes.
Mayor Wants Two Per Cent.
The Mayor thinks the companies
should pay per cent. over and above
any other taxes they pay. instead OF
, the two per cent. merely being a part
OF their taxes.
Another clause sets forth that the
Street and Sewer directors, the Sec
retary or other authorized person
can examine the books of either COM
pany The Mayor wants the Public
Utilities Commission incorporated in
this clause and given the same priv
ilege of examining the books OF th5
companies.
Another objection OF the Mayor was
to the clause giving the Wilmington
{ City Electric Company the right to
use any street, by-way, alley, etc. He
, is OF the opinion that before the
company is allowed to do this It must
, get permission from the Street and
, Sewer Commissioners. He Is also op-
3 posed to the perpetual lease CLAUSE
] in the franchises Of both companies
and thinks the length of the term Of
J the franchise should be limited to a
p certain number Of years.
5 With respect to the Wilmington and
) Southern Railway Company's franz
4 chise the Mayor set forth in his lettor
p TO the Street and Sewer Directors that
Il was not stated sufficiently definite.
r Just how the two per cent on the
gross receipts Of the company was 70
z be computed inasmuch as the line Ia
: partly out Of the city and Will be
F. partly within the city limits. He
} thinks IL should be more plainly
/ specified on just what mileage the two
? per cent should be based.