Pine Bluff daily graphic. (Pine Bluff, Ark.) 1893-1942, 1916-04-15
BLANCHARD NOT
SATISFIED WITH
FRANCHISE Plan
Continued from Page ~


gross earnings of the company. Ouch
a tax was not exacted of the Cotton
Belt or Iron Mountain railways, and
would be an unfair discrimination
against our company, placing us at a
disadvantage in the matter OF operat-
ing costs and competitive rates, at
which we would have TO haul freight
and might just as well say frankly
to you at this time that we would not
care to operate under such discrin.i
nation.
THE suggestion of certain members,
that we select the route which we
propose to occupy, naming it in the
franchise, simply means that if we at
tempt to got terminal real estate alone
the line Of a known location. we will
have to pay a higher price for such
real estate than we would if we had
the chance to select our route after we
have been able to buy terminals at
fair price, and l feel sure no one
wants to impose that penalty on us.
1.-The suggestion that we at this time
deposit certified check for $1,000
with the city clerk, to be forfeited if
we do not build the road on the fran
chise granted us is unreasonable
cannot be complied with and is not
consistent with our position. If, after
we get an acceptable franchise, get
our costs compiled, get our earning
estimates made, and then decide to
build the road, would have no objsc-
ton to forfeiture clause. if the gen
| tlemen insisted, but at this stage OF
investigation merely, such cash for
fixture clause is impossible.
"It was stated when the bridge con-
tract was being negotiated, that with
in two years previous to that Vine,
a bonus or subsidy had been pledged
for railroad coming into Pine Bluff,
and that the road which I propose to
build would have no trouble getting a
franchise. We are not asking aor a
bonus, but we do want a franchise on
terms as favorable as those granted
the Cotton Belt and Iron Mountain,
and feel that such a franchise has
been promised.
"The proposed road contemplates
connecting with barge line to be
operated between st. Louis and Baton
Rouge or New Orleans, La. The Kan
sas City Missouri River Navigation
company was organized by the citi
zens Of Kansas City, a very progress
sive lot of people, and they raised for
the company $1,000,000 to put Kansas
City on the water competitive freight
basis. This company makes rate of
80 per cent. of the rail rate, from wa
! ter points between st. Louis and Kan
sas City. On freight originating or
| destined beyond these points, l am
informed that the reduction amounts
to 10 per cent. of the all rail rate.
81 do not know the exact amount
of the freight which is paid in Pine
Bluff annually, but have been in
formed that it will be over $1,5O0O,000
Ten per cent. of this amount means
saving of $4,000 to the people of
Pine Bluff. and it seems to me to be
a sufficient argument against gross
earning tax"
Leaves for New York.
Mr.. Blanchard was compelled to
leave for New York yesterday after
noon, but spent a few minutes with
the chamber Of commerce trustees,
discussing the franchise ordinance.
He expressed his willingness to ac-
cept an amendment to the ordinance
specifying that unless work is started
in Pine Bluff or between Pine Bluff
and the free bridge, by the road,
within six months, the entire ordi-
nance is to become null and void.
Mr.. Blanchard stated that he had
received information that the price
of steel is to be increased on May I.
He had hoped to be able to place the
roads order for steel rails before or
by that time, but stated that because
of the unsettled conditions here rela-
tive to the franchise, he will not be
able to do So. He will be unable to
take any definite action, he stated,
until he can tell the bankers and fl
nanciers who are financing the mat
ter. the exact cost of the building of
the road, including it's entry into Pine
Bluff and it's terminal facilities here.