Evening journal., 1918-07-19
CLAIMS TRACTION CO.
owes FRANCHISE TAX
Hasn't Paid on Current Sold
TO Consumers Out
side City
SHOULDN'T PAY ON 1T
Is VIEW OF COMPANY

Councilman James w. Robertson last
night, at a meeting OF City Council,
announced that he proposed TO take
some action to try to compel the VIII
mingtOn and Philadelphia Traction
Company TO pay franchise taxss,
which he claims are due on electricity
delivered 10 points outside the city,
which the company claims il is not
required TO pay on. The company has
paid its tax on receipts from electricity
delivered within the city, but con-
tends it is not required TO pay on cur
rent distributed outside the city limits.
The question OF the franchise taxes
came up after Councilman Abberger
presented a protest about the bad
street paving on Fourth street be-
tween Jefferson and Washington streets.
Ihis letter was signed by all the prop
erty owners Of that block and Mr..
Abberger asked that 10 be referred 10
the Street and Sewer Department with
instructions 10 have the crater-like
street repaired.
Councilman Robertson explained that
he recently visited that section on an
invitation OF woman resident OF the
block and found the paving unsatis-
factory. kr. Robertson then launched
into The subject Of the franchise tax
saying;
Several years ago tho Street and
Sewer Department entered into an
agreement with the Wilmington City
Electric Company for that cOncsrn 10
pay to the city two per cent OF its
gross income, less the taxes paid on
its wires, poles, etc, after they reached
a certain amount The department Is
Of the opinion that this agreement in
cluded all the current made here and
sold outside and no fair-minded man
can place any other construction on it.
Those who don't play fair don't like
to think otherwise, and the traction
company thinks it has found a loop
hole 10 get out OF it.
This didn't amount 10 much in
1915, or In 1916, but in 1917 il almost
doubled itself, owing 10 the increase
In business"
The amount now due in taxes on
current delivered TO consumers outside
the city is now s9,sss56. divided as fol-
lows. Mfr. Robertson clsimedi 1915 tax,
81 .s72 %; 1915 interest, s22s.75; 1916 tax
s.. 500 %; 1916 interest. si43 80; 1917 tax,
sl5i2 81; 1871 interest, si3537; total,
s9,2Ss56.
Now want 70 say. I am personally
responsible for these statements, but
the Street and Sewer directors VIII
agree with me in them" Mr.. Robertson
added "Some time ago this company
was granted the right TO increase their
rates charged the poor people and II
we had a public utilities commission
that was WORTH cannot find an ad-
jectivs strong enough 10 define them
who would have said you pay the
money you owe the city end you can
increase the rates, we would have re-
ceived our money
Mr.. Robertson then explained that he
was preparing data on the subject
which he proposed 10 lay before City
Council, and also the city solicitor II
so instructed, 10 bring suit at the
proper time
Mr.. Robertson also Rdded that he was
informed by a man recently that he
was going insane on the subject. and
he said: u would rather by insane al
Psrnhurst than a thief at large" lie
said he had 80 more nights yet In
Council and 50 more plums TO pluck.
Colonel q. w. Sparks explained that
his department had been receiving the
check for taxes on current delivered
within the city from the company un-
der protest, that tney had considered
the m3iter snd referred Il 10 Council
before, and IL was up 10 that body 10
take action,