Virginian-pilot. (Norfolk, Va.) 1898-1911, 1899-12-07
GOV. T'YLER'S MESSAGE
TO GENERAL ASSEMBLY.
Continued from Pagel..

Continued from Pagel.
mains as t Is. some other source of
Srevenre Will have to be devised. It la
hoped, however, the assessment will
increase rather5than diminish. I do not
feel, however. that the lands of the
4 Commonwealth could, in the continued
low price OF products. stand a greater
burden than now exists. II 1T should
become necessary that any existing
property should have an Increased
assessment, believe that the >railroad
and some other corporations of the
State would gladly, bear reasonable
one on their properties. They are get
ting more and more prosperous every
year, and the amount of taxes paid by
them in proportion to their income is
nothing like that paid by other prop
erty holders In the State. They are In
terested more than all other interests
IN the maintenance OF the credit Of the
State, and it was the general under
standing. as implied in the report of
the Debt Commission, and understood
by at least some of the members of
said commission. if any increase in the
taxes should be required in order to
meet the additional interest Charges.
that the railroads would assume said
Increase. / believe it to be to the in
terest of every railroad in Virginia to
see that no question ever arises in re-
gard to the payment,of our public debt.
or the interest thereon. and that rather
than see the Interest forfeited for
single year. that these great corpora
lions could we'll afford to assume, and
doubtless would assume, n much larger
part. il not the whole interest fund it
self; and am, not certain that even in
such an emergency any very great in
equality would be imposed oil them by
such course. Our present system of
taxa ton, as applied to railroads, Is very
much less burdensome than that OF
many other States All the frst-class
q lines in the State are assessed Mt $l5,-
Ou0 per mile, while it is q known fact
that hundreds OF miles of these roads
are mortgaged at two, three and four
times this amount. 1t Is not necessary
for ME to call attention to the fact that.
all pronerties are generally worth far
more than the amount of mortgages
that can be put upon them; and while
there is provision for railroads and all
corporations 10 pay under our laws an
& income tax, yet before paying this in
come tax they are allowed to deduct
from their income interest on three or
four times the amount or bonds their
road is assessed for. ] would recon-
mend to this Legislature that no cor
Dora ton, in ascertainng It's income,
should be- allowed to deduct Interest on
bonds greater than the amount of as
sessment foritaXation against the prom
erty.
Let me try to make this plain For
instance, a. corporation might have a
net income of, say. s175,oOO. One per
cent. income tax on this amount would
yield the State s1.750. The directors
Y could easily create a fictitious debt by
Issuing bonds in excess of what are ac-
tually negotiated, OF. say, $1,000, 900,
holding the bonds themselves, and pay
interest on these bonds to themselves,
which Mt six per cent. would be $780, 600,
thus entirely cutting the State out of
4 the amount of it's income tax. No such
opportunity should be left open for the
practice of such frauds do not mean
Z 70 say that we have in the State of Vir-
z ginia corporations that would do such
things, but In this day of stock and
bond manpulations, it lis we'll to pro-
vide against the possible accomplish
1nent OF such purposes. I yield to no
man In my State in the desire to see
our railroads and all other industries
4 prosper. am in favor of doing what
is right between man and man, and as
between man and corporations. I
heartily favor encouraging public en-
terprises by showing them every pos
sibie encouragement under the law, and
] believe the investment Of new cap
ital i'll our State Is n great and inesti-
mable benefit TO all our people 1t
gives employment to what would other
wise be Idle hands; 1t builds ZIP waste
placesIand stimulates trade and de-
velops industries In every direction.
Z Corporations, justly and equitably as
scssed and taxed, and held to the sole
object OF their creation, are one of the
great forces in our modern civilization
in bringing into the reach of all men
the comforts of living. So long. as they
do not Interfere In the political rights
of the people and do not seek to avoid
their just share and proportion Of the
burdens OF sgovernment.they are a bless
Ing To mankind. In this connection
would recommend. in order to relieve
the railroads OF n burden, for which no
one gets any corresponding benefit. the
abolition OF the Office OF State Railroad
Commissioners; and IL, in the wisdom of
the legislature any such commission is
desirable, that its object and purposes
be Clearly defined, and that It's officers
DC paid out of the treasury of the State.
THE PUBLIC DEBT.
The General Assembly at Its last SEES
si"n for the third time, opened the door
for the funding of the old securities
which had not been funded under the
Act OF February II, 1882, or February
20, 1892. The report of the Second An
uitor shows that under the provisions
of this act the holders Of s162 619.5l OF
old securities surrendered and had
them funded and received in lieu there
OF SS4.172.4S OF new 2-3 bonds. This in
creases the century debt to SIS, Oo3. 0Ss 81
As there is still outstanding a smal,