THE BUXDjLY OBEGOMAy, PQgTL'Ap', JUSE U,, lWg,
21
FRANCHISE IK
3 DEMANDED
Big Corporations, Which Pay
' but Little Into the
Treasury,
HOLD PUBLIC UTILITIES
Although Their Revenue Comes From
Their 'Monopolies la the Streets,
They Contribute Much Iicss
Than a Pew Merchants.
WHAT THE COnrORATIOXS PAT.
Companies holding street franchise
in Portland and the eumt which they
pay annually to the city:
Portland Gas. 20
Portland General Electric 300
Pacific States Telephone Sz
Telegraph 1,000
Oregon Water Power Sz Hall
way, last year 1.200
Western Union Telegraph 300
Postal Telegraph "100
Portland Consolidated Railway 4,500
Southern Pacltlo Company Nothing
Oregon Railroad & Navigation. Nothing
Northern Pacific Terminal. .. .Nothing
Portland Hydraulic Elevator.. Nothing
Business license; no compensation
for franchise.
All the foregoing companies have
special privileges from the public in
the use of streets. Many business
firms of the city, without such priv
ileges, pay as high as $200 and more
a year for license, or as much as the
gas company, the electric company or
the telegraph companies, while the
railroad companies pay nothing at all.
Eight of the foregoing companies hold
franchises which are perpetual In the
sense that no time is specified in them
for their termination.
For use of public streets for electric
light, telophono and telegraph wlros.
street-cars, railroads and hydraulic el
evator pipes, the City of Portland,
which granted franchises for those
public utilities to 11 companies, Is
compensated loss than $7000 a year.
Four of the companies, returning
nothing for their occupation of the
streets, pay 5900 for what arc termed
'business licenses."
Therefore the franchises on which
the 11 companies do their business and
maintain their monopoly and! make
their profits from the public do not
pay the city $8000 a year for their spe-,
clal privileges. !
But 33 business firms, owning no
franchises from the public, endowed
with no special privileges, and1 no mo
nopoly, yield 5S000 a year for "busi
ness licenses"; and SO such firms con
tribute in that manner twice as mucn
as the 11 companies for franchises.
Thus it Is clear that the private busi
ness houses arc victims of discrimina
tion. In that they are taxed far beyond
their proportion for use of the public
streets and other privileges while the
11 companies, mnklng their use of the
public thoroughfares the one source of
their revenue, and enjoying monopoly
of those privileges, pay much less than
their fair share of the burdens of gov
ernment. Hold Perpetual Franchises.
Eight of the companies hold fran
chises which arc perpetual in the eense
that no time is specified in the grants
for their termination: they are the gas
company, the eloctrlc light company,
the Southern Pacific, the O. R. &. X.,
the torminal company, the hydraulic el
evator company, and the Western
Union and the Postal Telegraph Com
panies. Four of these eight pay b'islenss li
censes to the city the gas, the electric
light and the telegraph companies
while the four others pay nothing save
regular taxes. But the SO business firms
pay licenses m addition to their regular
taxes. And these firms include no sa
loons, restaurants or drugstores only
mercantile, banking and theater com
panies aud the like.
Taxation of Franchises.
All this gives Impetus to the popular
demand for taxation of public franchises
and makes this subject the most import
ant that will come before the State Tax
Commission, which has just been appoint
ed, and which will draw up a tax code for
enactment by the next Oregon Legisla
ture when it shall meet In January. 1907.
The franchises granted by the City of
Portland cost grantees nothing, and the
city derives revenue from only three
those of the Portland Consolidated Rail
way Company, the Telephone Company
and the Oregon "Water Power & Railway
Company.
This revenue, however, is ridiculously
small. In view of the fact that the fran
chises, costing nothing when granted, are
now capitalized at millions; witness the
rale of the Portland Consolidated Railway
Company for $G,000,000. two-thirds of
which sum is based on the value of the
franchises. By the terms of those fran
chises, the company pays to the city only
$4560 a year for tho use of the streets in
all parts of the city, or 5373 a month a
sum that would hardly pay for rental of
a good-sired store on Third street, past
which the company drives its cars, yet
which makes only a small fraction of the
revenue riding past its doors In the Con
solidated Company's cars.
Has Long: Time to Run.
Tho franchises of the company are yet
to run 27tj years, and as time goes on the
revenue it is bound to pay the city will
be Increased; during the period from 1227
to 1932, years hence, the annual pay
ment will be $21,000, or 53000 a month.
This figure will probably turn out more
ridiculous than that which the city Is
now receiving, inasmuch as the earning
power of tho car system is expected to
be Immensely greater than now. owing to
growth of the city.
The car company's franchises were
granted by the present Council two ana
a half years ago. They were put through
hurriedly, in order that they might bind
tne city before the present charter should
go Into effect; for it granted under the
vharter now In force, a number of Im
portant limitations would have curbed the
schemes of the two companies which re
ceived the franchises, and which have
since been consolidated the Portland
Railway Company and the City Sz Sub
urban Railway Company. For example,
the franchises could not have lasted more
than 23 years, whereas their life was
fixed at 30 years; the city would have
been ompowcred to exact from the grantee
a percentage of their gross revenue as
compensation to the city; the grantees
would not havo been permitted to shut
out competing companies from joint use
of their. tracks for short lengths, as In
the crowded business districts; the
grantees would have been compelled to
make reports ' of their earnings to th
City Auditor: and other limitations of
lesser Importance would have ceen imposed.
Made a Thrifty Turn
Consequently the car companies made a
thrifty turn when they secured the fran
chises, turned in tbclr old franchises la
exchange and paid nothing to the city
treasury for the trade. All the foregoing
restrictions they escaped, and, instead of
allowing the dty a revenue from their use
of the public streets, commensurate with
their earnings, and based on their income,
they allowed only a lump sum, 'absurdly
small compared with the exclusive privi
leges and monopoly conferred on them by
the city.
Two companies holding franchises also
profitable and relatively more so than
those of the car company, since the
gantccs pay nothing for the privilege, are
the Portland Gas Company and the Port
land General Electric Company. These
franchises cost the grantees not a-dollar
to acquire, not a dollar to hold. They
pay no franchise tax to the city, and
the only revenue the public derives from
the pipes of the one under ground and the
wires of the other overhead Is a $200 an
nual business license from the gas com
pany and a 5300 license from the electric
company. The one company digs up the
streets where It pleases, and until recent
ly has been filling up the holes to suit
its own pleasure, while the other has
been netting unsightly poles in the streets,
sometimes in the way of property-owners
and mutilating shade trees that thrust
their "branches between the wires. And.
though the earning power of these two
companies is based wholly on their use of
tho public streets, they pay nothing for
tho privilege. Furtbcrfaore. their fran
chises have no time set for their ending,
and If the city Is ever going to collect
revenue from these two Important utili
ties, or terminate the franchises so that
It may acquire the utilities Itself. It
will have to battle long In the courts.
Terms ot Their Grants.
The cas company's two franchises were
granted, one by the Territorial Legisla
ture in 1S53. the other toy tne city wrau-
dl in 1S9S. the electric company's by the
City Councils of Portland and East Port
land and Alblna. at various times from
1SS3 to 1BSL one in Alblna. two In East
Portland and two in Portland.
Though those two companies are pos
sesscd of large privileges, granted by the
public, they pay but $500 a year Into tho
city treasury, besides the regular taxes
on their tangible property, while many
business houses, not possessed of such
privlleces. nay as much for business
licenses, towlt:
American Steel Sz Wire Co $200
Ames & Harris, baga 200
Arcade Theater 200
M. I. Aiher. pawnbroker................. 300
Balfour. Guthrie Sz Co 200
Barr &. Hares, cawnbrokerf... .......... 300
Canadian Bank of Commerce 210
A. Delovage. pawnbroker................. 300
Eantern & Westetm Lumber Co......... 2UJ
Etberr. Gunst Sz Co 200
Flelschner, Mayer & Co 240
W. P. Fuller & Co 2 0
B. Granlch. pawnbroker.................. 3W
Honey man Hardware Co 240
Inraan, PouhMn Co. (first quarter)...... 113
Lane & Co 240
Llpman. Wolfe Sz Co..................... 240
London Sz San Francisco Bank... 240
A. Lyon, pawnbroker...................... 300
Dan Marx, pawnbroker 300
Mason. Ehrman & Co........ 240
Meier Sz Frank Co 240
Bertha Myers, pawnbroker...... 300
North Pacific Flour Mills Ce. (first quar
ter) 100
Olds. Wortman A KJnc 244
Oregonian Publishing Co 2ou
Park Theater X)
Portland Cerdace Co 200
Portland Flouring MIH 240
t tan card oil Co io
Union Meat Co 240
Wells-Fargo & Co. Bank 240
P. Nathan Wolfe, pawnbroker 300
What the Firms Pay.
The 33 firms just named pay 5SOO0 a
year to the city in. addition to their usual
taxes, a larger sum than that paid by
the 11 companies lh addition to the taxes
on their physical properties. The 11 com
panies contributed to the city government
last year for franchises and licenses $769).
And there arc many other business
firms in the city which are taxed In. large
sums for licenses, yet enjoying no mon
opoly nor special privilege from the pub
lic, among them being: j
A. H. Averili Co $100
George Baker, auctioneer........... 100
Baker Theater 150
Banfleld-Veyxey Fuel Co 100
Charles F. Beebe Co ISO
Blake-McFall Co 100
Bradetreet's 100
Brryman Leather Co 100
Butterfield Bros 120
Closoett Sz Derers 100
J. F. Cordray 150
Crane Companay 100
Dunn's Mercantile Agency...... 100
Edison Theater 133
Empire Theater .......................... 150
Ford Auction Co 149
F. Fritz Sz Co 138
J. K. Gill CO 100
Gllman Auction Co 169
W. B. Glafke Sz Ob JO
Goodyear Rubber Co..... 1C0
Hazelwood Company.................. 100
Heywood Bros. & wakene4d Co 100
Kerr. Gi.Terd & Co 120
The George Lawrence Co...... 1C0
James Manner Sz Company... 100
Marquam Grand ISO
The J. McCraken Co J10
T. McDonald, auctioneer 100
Mitchell. Lewi z Stiver Co ISO
Mollne-Baln Co 100
North Paelflc Anumacat Co..... ISO
Overbeck. Star & Co 100
PacKlc Coast Biscuit Co i. 3 CO
Page Sz Son ISO
Portland Lumber Co 150
Portland Trust Co . loo
E. M. Sargent Sz Co ...J20
M. Seller & Co 100
Studebaker Bros 100
Tatum Sz Bowen 100
It. M. Wade & Co 100
H. Welnhard.. 100
Revenues From Franchises.
The city's revenue lost year from fran
chises of all kinds was as fellows:
Pacific Coast Telephone & Telegraph
Company $iom
Portland Consolidated Railway Co.... 4300
Union Market Association (rent) 1100
City Messenger Sz Deliver' Co lvO
Total $7O0
Tho Union Market Association's pay
ment of 51100 was for rental of what is
now known as the market" block, whore
public markets are to be maintained.
Tho telephone company's payment is un
der a franchise granted three years ago
for a period of 25 years. In addition to
the payment of money, a largo number of
telephones are supplied the city free of
cost. The telephone company's franchise
Is not exclusive and the company Is soon
to have a competitor, a franchise having
just been granted for a system of auto
matic telephones.
In addition to the foregoing sums paid
the city last year may be mentioned
51200 from the Oregon "Water Power Sz
Railway Company, for licenses on Its cars.
In accordance with a franchise granted by
the Council In November. 1WC
BUY STR EET RRlLWftY
Eastern Banking-Houses Now
Are the Owners.
PLANS OF CORPORATION
FIRESALE.
Thomson's corset warehouse. 3&C47
Broadway. New York, damaged by tire.
We secured five large cases of the best
number for less than 1-5 of actual
cost. The corsets are In perfect con 31
tlon and will be placed on sale Monday
morning at 10 o'clock. Corsets worth 53
go at Sjc -pair, only two to a customer.
By mall 5L2S. Send In your order for
the best all-round style of corset made.
McAlIen Sz McDonnell, the store than
has no competitor.
LET US INCREASE YOUR
BUSINESS.
By lighting your stores and show win
dows with our new methods of electric
and gas lighting, we can increase your
buslness 0 per cent. Telephone or see
us at our showrooms. S43 Washington
street, corner of Seventh, for estimates.
Have you heard the new twostep. Kat
clna." latest thing out; catchy and full
of swing.
It Proposes to Extend the Subnrban
Lines Greatly and May Ulti
mately Build as Far
South .as Salem. ,
The Portland Consolidated Street Rail
way Company Is now the property of
Eastern banking houses and great things
are to bo expected from tho change.
Yesterday morning the change of own
ership was made when the holders of tne
majority of the stock In the Portland
Consolidated Company transferred their
holdings to the firms of Sellgman
Brothers, of New York. and.E. TV. Clarke
Sz Co.. of Philadelphia. The consideration
In the transaction la approximately 5,0.
0CO, that being the selling price asked
by the stockholders in control of the com
pany at the time the representatives of
the two banking bouses visited Portland
a short time ago.
The capitalization of the Portland Con
solidated Company Is rated at a total of
53.0M.O00. of which 51.OM.0W Is treasury
stock and not Issued. It Is held as a
reserve fund for future contingencies that
it was thought wise to provide for at the
time of the reorganization of the com
pany some months ago, when the two
old companies wore consolidated. ' The
outstanding capitalization of the company
is 51.O00.O00.
The value of the company's property Is
not In excess of the capitalization. If it
is so great. A great effort Is now being
made, or has been In the immediate past,
to Increase the rolling stock and general
equipment In order to be able to handle
the crowds consequent upon the Exposi
tion. The company has added new cars
and Improved Its lines throughout the
city, but has not as yet finished all that
has been planned.
The property, however, is a valuable
one, as is shown by the fact that the
stock Is paying a -large dividend to the
holders. It Is the earning capacity ot
the road at the proportionate value of
the property taken in common with the
chances for expanding and growth with
the enlargement of the city, that has
made the Eastern financiers look upon
the project with so much favor.
It is understood that the new manage
ment of tho road will at once begin to
plan for the further extension ot the
lines of the company Into the suburban
districts. TVhlle nothing has been stated
autborltively It is shown lh a semi-official
way that it Is tho intention of the new
company to build on the west side ot the
river In the direction of HUIsboro, though
the exact route of the new road will de
pend upon what Is done by other com
panies now working in the samo line.
It is also hinted that the construction
of a line up the east side of the river,
paralleling the Southern Pacific, perhaps
as far as Salem, Is under serious consideration.
If these plans are carried out It will
mean a great deal for the development of
tfto Willamette Valley.
For the present it is not thought that
there will be any change In the manage
ment of the company locally, though the
personnel of the "board of directors will
perhaps be changed to a certain extent
by the retirement of some of the present
stockholders, who will turn their time
to other hut!no. Xn tntmAnf wilt
Nmade at this time by the officials of the
company as to the plans to be followed
by the new owners.
SEEN ON THE BIOGRAPH
COVE1CVMEXT READY TO GIVE IN
STRUCTIVE ExnmiT.
I
Moving Pictures of 31111tary and Navnl
Maneuvers, and Sham Battles
Will Be Presented.
The Government working exhibit. In
cluding the blograph. will be complete In
every detail tomorrow. A large force of
electricians will work all of today rear
ranging the wires of the building so that
extra voltage can be secured which has
been found necessary for the proper op
eration of the working exhibits.
The moving pictures, which will start
tomorrow, arc considered one of the most
attractive and Instructive features of the
Government exhibit, and were Installed
at considerable expense. This was the
only exhibit In the Government building
that was not In rcadlaess when the struc
ture was thrown open to the public on
opening day.
So much has been said of the Govern
ment moving pictures, which will be
given dally free of charge, that large
crowds have assembled nearly every day
In anticipation of seeing them. The visit
ors who have called at the building have
been greatly disappointed because the
blograph was not In operation.
The blograph Is located in an auditor
ium, capable of seating more than a hun
dred people. In the main building of the
Government exhibit The room Is dark
ened so that the pictures can be seen In
the day. There will be several exhibitions
both In the morning and the afternoon.
it will show all the different phases of
military and naval life, from the drills
of the regular troops of Infantry and cav
alry to the maneuvers of the powerful
battleships and cruisers of the United
States JCavy. It is understood that there
will be pictures of nearly all of the ships
that compose the Navy, including the torpedo-boats
and submarines.
Pictures will be shown of torpedo-boati
firing their terrible projectiles and the de
struction wrought when they explode.
Exploding submarine and floating mines
will also be shown. There will also be
Illustrations of the torpedo-boat destroy
ers, which are somewhat larger than the
topedo-boat. carrying a heavier armament
and a larger complement ot men.
It will show pictures of the battleships
saluting and the naval maneuvers of re
cent years. It will show the ships in full
speed. It is understood tha the visitors
to the exhibitions will be treated by the
blograph with a sham battle of the regu
lar troops.
The pictures will show thousands ot
men in the field, from all appearances In
deadly combat, with batteries of artillery
In action. Soldiers by the hundreds will
be seen to fall to the ground, and when
the scne ot the conflict passes out of
view ot the audience the ambulance corps
will remove the dead and wounded from
tho field. There will also bo charges "by
the cavalry.
At this time, when the attention of the
entire civilized world Is centered upon the
gigantic struggles which have taken place
in Manchuria and the waters of the Japan
Sea. between the land and naval forces of
Russia and Japan, the pictures of the
battleships and rcgBlar troops will prove
to be particularly Interesting.
June ZL 51000 cash It you guess it. Don't
ferret it.
CALEF BROS.
Furniture
i 30 6th Street .
We Will Soon Move
To East Morrison. Street
Between
East 3d and Union Ave.
Before moving
we will reduce
our stock as low
as possible. To
do this we must
have your help,
For the next
two weeks the
profits are yours.
U
m
Come and get some
thing, for you will save
from 10 to 40 per cent.
Remember our stock
reducing sale is on at 130
Sixth street.
V
, -J"
The Best Ever
LAST WEEK
we received
.v ."v - . : J'
' . v. V
144 Men's Suits
better than any we have ever
"sold for $15.
A, 7' '' -. v
4
.r
't V
STRANGERS
IN THE CITY
9HUR-ON
Should remember that the Oregon
Optical Co. is the best equipped opti
cal institution in Oregon.
All glasses bought o us kept in re
pair one year. This includes broken
lenses (the rimless kind included)
whether specially grouud or otherwise.
OregonOpticalCo.
Fourth and YamhlH, Y.M.C.A. Bldfi.
death occurred June 1 at the residence ot
F. Hackman, In Crook County, was a pio
neer of this state. He came to Oregon In
IKS, and for several years conducted an
Iron foundry at Oregon City. In the
Spring of 1SS! Professor Hurley moved to
Idaho and after engaging In the mining
business for ten years, returned to Ore
gon. In 1ST9 he located mines In Crook
County, which he owned at the time of
his death. Besides many friends. Profess
or Hurley left a widow and seven chil
dren; General George Hurley. Elmer S.
Hurley, of Xcw York; 3Irs. Fred Terry,
of Oregon City: Mrs. J. T. Lc Roy. Mrs.
George C. CaraHne. Mrs. C L. Pease and
Mrs. A. E. La bo witch, all of Portland.
Or.
.,;:--X. f,
To replenish our broken lines
we place them on our
Ten Dollar lit
TABLES
(WC ft" .4
Never Again
will you be able to secure such
bargains.
WHEN YOU SEE IT IIS OUR
AD IT'S SO -
-r. ; ..,v-ri
V
MAVCD THIRD and
iyivy 1 JJrv OAK STS
in this country, and that this course of
procedure has given Mrs. Flske consid
erable free advertising. She has clever
press agents.
COMMENCEMENT.
Commencement exercises of the Gilles
pie School of "Expression. Arlon Hall, Fri
day evening. June IS.
June ZK. "Watch It grow. Greatest holi
day of the year. That's alL
THEATRICAL TRUST AGAIN
Suit -Will Bo Filed In Behalf of
airs. Fiskc.
The 'next step In the theatrical war
fare Is the filing of a suit tomorrow by
John F. Logan against Calvin Hellig
and George I Baker enjoining them
from interfering with the playing of
Mrs. Flske at the Empire Theater. While
the contemplated step may be the work
of the enterprising press agent to "boom"
Mrs. Flske. yet the facts are that those
In the deal wish the aid of the law to
help them out of their tangle. When the
emissaries of Mrs. Fiske consulted Mr.
Logan to secure a noncohtrolled trust
theater where their star could shine. Mr.
Logan hied himself to his friend. Lawyer
Robert W. Galloway, who has a lease
on the Empire Theater from Mr. Hellig
and Mr. Baker. Supposing there would
be no hitch In the arrangement, from
the theatrical trust, Mr. Logan gave the
word to go ahead, and the Flske men
began to get out their lithographs. Then
the Helllg-Baker forces got busy, and
Mr. Logan was informed that he .could
not play Mrs. Flske at the Empire. Mr.
Logan- Insisted that be had a right to
do so under the rights of Mr. Galloway's
lease. JCay," said the theatrical trust.
So the war Is on. It's an old story thnt
"the Klaw-Erlanger theatrical trust has
fought tooth and nail to prevent Mrs.
Flske playing at any of their theaters
PIANOS
DELAYED
But will be here Tuesday. Large ship
ment due to arrive on that date. It
will pay you to see them. They are
the latent designs ot the flaest makes.
SOULE BROTHERS
PIANO CO.
372-374 MORRISON ST.,
COR. W. PARK.
For free estimate for tuning; polish
ing, reflnls'ntng and repairing pianos,
call up Main 677.
Stories of Oregon
Is c. very Interesting and thrilling account
of true Indian adventures and frontier
life In crossing the plains to Oregon In
the year of 1S32. by George A. Waggoner.
Price, . postpaid, $1.50.
JONES' BOOK STORE
SI Alder St., Portland, Oregon.
Old Pioneer of Oregon Dies.
Professor Richard H. Hurley, whose
. FOR EXHAUSTING r
Smoke, steam, vapor, gases,
'foul air, fumes, or any light
solid material, such as wool,
cotton, grains, shavings, no
system approaches The pan
System in point of efficfency.
We will be glad to supply in
formation, and can guarantee
positive, definite, results.
' 2 k
the w. g. Mcpherson
COMPANY ,
Heatla. Ventilating aa4 Dry!a
Eaflaeers, -
47 FIRST STREET!
HOME FURNISHINGS
Do you know how little it takes to
furnish your parlor, or your entire
house, for that matter, in a manner at
once !as neat and tasteful as any
standard of social taste requires? It's
not the amount of money you spend;
itTs the taste and tact. A person who
lacks these can hide $100 in a parlor so
its effect could not he noticed, while, on
the other hand, that amount of money
used judiciously would give it an ap
pearance far above the average. tfo
matter how much or how little money
you spend, brains will more than double
it in the, effects secured.
It's the same in buying Eumiture for
the trade. A glance over our stock will
convince you that the things that go to
produce the very best effects,, no matter
how much or how little the cost, are
here, and are arranged in so suggestive
a. way that your selections are easily
and quickly made, and this is a real
consideration to the busy housekeeper. ,
We make terms suit thoconvenience
of your income. . Have no hesitancy
whatever in making your wishes known
in this respect. If you want the goods,
we can dp business with you in a way"
that will make- and keep you our ex
clusive customers-.
COVELL'S
Formerly New York Furniture Co.
184-1S6 FIRST STREET
. "T