The times. [volume] (Richmond, Va.) 1890-1903, 1898-01-21
TELEPHONE COMPANIES.
To Pay a Tax of One Per Cent. to the State
on Their Gross Receipts.

on lheir Gross receipts
The House Committee on Finance held
a called meeting in room No. 1 on the
upper floor Of the Capitol Building yes
terday afternoon at o'clock with Mr.
Merritt 4. Cooke. OF Norfolk, in the
chair. The object Of the meeting was TO
take up the consideration of Mr.. Saun-
ders bill providing for a board of APP
praisers and assessors TO ascertain the
value OF taxable property OF express,
telegraph and telephone companies.
The various companies were represent
by the same gentlemen who were pres
ent last Tuesday when the consideration
Of that bill was first taken up. Mr..
Saunders who was also on hand. stated
that after conference with the various
representatives he was willing TO acqui-
esce i'm their request TO let the matter
20 over until next Tuesday. when these
gentlcmen expected 10 he In a position
TO submit some proposition that might be
agreed upon. The committee finally de-
cided TO postpone the further cOnsidera-
ton Of The bin until next Tuesday even
ing a. o'clock.
RIGHTS or LAWYERS.
Among those who appeared before the
committee were several lawyers who had
uqid the counsel fee OF 500 provided BY
law and they claimed % have the right
Of appearing not only before the various
committees. but also before either branch
~ Tie General Assembly. I'm support Of
their claim they submitted printed copy
as extracts from the existing laws which
had been compiled IN the office ~ Audi
tor OF Public Accounts and which read
thlt they shall appear before any COM
mittce or either branch OF the General
Assembly
When the committee consulted the acts
on Assembly OF $500, which contained
the law referred TO- g. was shown that
rhe passage quoted from that act read az
follows:
They shall appear before any commit
tee of either branch OF The Genral As
scmblv."
IL was apparent. therefore. that the
compilation made by the Auditor Of Pub
ne Accounts contained an error.
TELEPHONE TAXES.
The committee then took up Mr.. Maui
pins bill providing for a change in the
taxation Of telephone companies. The
present law provides that telephone COM
panios shall pay a fec Of $50 for each
transmitter, II they have 500 or more
telephones in use. while Mr. Maupin's
bill seeks To have every telephone com
pany doing business in the state pay
tax ~ ! per cent. on it's gross receipts.
Several gentlemen were present 10 ex-
press their views In regard 10 the bill.
Mr.. Watson. Of Augusta. appeared before
the committee and stated that a tee-
phone exchange existed in stanton
where no transmitter tax was paid. The
telephones were sold TO subscribers at SO
per wear II this tax was 20 be paid the
price of the telephone would have to be
! raised II the tax OF Sl.50 was 10 be paid
| FOR each transmtter all the prohts would
! be used up.
Mr.. Scott. OF Lynchbure. also spoke in
! favor Of the provisions OF the bill intro
| duced by Mr.. Maupin and against the
| existing law. lie said at present the
smaller companies paid absolutely no
| thing. but they were willing 10 bear
| their share but should not be Outrageously
! taxed. II there was a distinction made
new companies would be organized, thou
sands OF people would he given employ
ment. IL the new tax was decided upon
| the taxes would be raised from Z 10 per
cent. as they now are. 10 from y 10 IL
| per cent. thereby driving many organiza-
J lions out OF business.
| Three years ago an independent telc-
| phone company was organized III Lynch
! burg. and FOR three years the concern OF
which | am the president has not made
dollar. and we will be compelled TO sell
| out IL this bill becomes law IL TINS TAX
was imposed on telephone business Il
would annihlate all business invested in
thar line during the past eight years.
Mr.. Churchman. OF Augusta. said his
county had q very good telephone systom,
| which had extended as Tar as IL would go
under the present law. II was particular
Is useful during the harvest time 10 trans
nit weather seryice II the tax was
made ratable TIT company could extend
| the telephone service.
| CAPTAIN GUIGON'S VIEWS.
Captain ~ r. Guigon spoke In behalf 81
the local companies. and said they had
| no objection TO the Saunders bill, which
| did not AFFECT them. The Maupin bill. in
! his estimation, was absolutely Just. In
| Charlottesville the Mutual Telephone
Company charged from $40 10 81 year
! I'm other cities the rates were niue
| higher. tax OF $50 per transmttcr
was "A great hardship 10 local companies.
and the only fair way TO distribute such a
tax was to place II on the gross earnings.
In many instances the total receipts from
| tho transmitter tax amounted 20 large
| nor,ion OF the gross receipts
! BEFORE the advent or these oppo sition
| comranles the fcld was In The hnnds oi
the Dcll Company. For the telegraph
| cnmnapics the tax has been for the past
eight years a tax Of per cent OF their