The times. [volume] (Richmond, Va.) 1890-1903, 1899-12-07
SOVEREIGN REMEDY CO.,
1887 Arch ST., Philadelphia, Pa.

would gladly bear q reasonable one on
their properties. They are getting more
and more prosperous every year. and the
amount OF taxes paid by them Ia pro-
portion 10 their income is nothing Ike
that paid By other property holders Boo
the state They are interested more
than an other interests iu the mainten-
ance OF the credit of the state, and it
was the general understanding. as inn
piled in the report OF the Debt Conmis-
sion. and understood by at least s. ne of
the members OF said commission. if any
increase I'm the taxes should be required
in order TO meet the additional interest
charges that the railroads would assume
s4id increase. / believe ia TO be TO the
interest ol every railroad in Virginia to
see that no question ever arises IN regard
20 tine payment of our public debt. or
She interest thereon. and that rather
than see the interest forfeited for sim
Gle wear. and these great corporations
could we'll afford To- assume, and doubt
less would assume, much larger part
u not the whole interest fund iisrl; ana
[ am not certain mat even m such -an
emergency any very great inequality
would De imposed Ola them by such a
course our present system of taxa
ton. as applied TO railroads is very much
less burdersome than that OF many
other States All the hrst-class lines
in the state are assessed at Sl5.Wo per
mile while it is a known fact that hum
drede of miles of these roads are mort
gagged ~ two. three and four times this
amount u is not necessary for me 10
call attention TO the fact that all prop
critics are generally worth far more IMAM
the amount of mortgages that can be
nut up0n them. and while there Is pro-
vision for railroads and all corporations
To pay under our laws am income tax
set before paying this income tax they
are allowed 90 deduct from their income
interest ON three or fou; times the
amount of bonds their road is assessed
for. would recommend to this Leg
islature that no corporation, M ascer-
tanning its income. should be allowed
to deduct interest on bonds greater than
the amount of asst ssment for taxation
against the property
Let me try 10 make this plain. For
instance. a corporation might have a nel
income Of say $4,000. one per cent
income tax ON this amount would yield
fhe state SL1l0. The directors could
easily create fictitious debt by Issuing
bonds In excess of what are actually
negotiated OF, say. 100000 holding
the bonds themselves. and pay Interest ON
these bonds 10 themselves "lil'H
at six per cent would Doe $4,000. thus en-
trelv cutting the state ont Of the amount
of IFS income tax ~ such opportunity
should be left open for the practice OF
such frauds / do not mean 10 say mat
we have in the State of Virginia corpora
lions that would do such things, but I'm
This day Of stock and bond manipulations.
10 is well 20 provide against the possible
accomplishment Of such purposes. ] yield
20 no man in my state in the desire TO
see our railroads and all DINER industries
rrosner 7 am I'm favor of doing what is
RIGHT between man and man. and as be
tween man and corporations / heartily
favor encouraging public enterprises by
showing them every possible encourage
rent under the law. and | believe the
investment of new capital in our state Is
"a great and inestimah'e benefit TO all our
people. II gives employment to what