Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1899-12-07
THE STATES AFFAIRS,



treasury, II would be a risk. ana pernaP
irreparablo mistake, for he j,egisa'rr'
10 conclude that there Is less neeh io'
the exercise OF economy than there has
been In past years. There have been an
usual causes for Increase In the revenue
for the last two years; especially has tht
collection OF arrearagcs on the delinquent
land tax been potent factor IN produc-
ing this result. We must bear IN miad
that the State has collectcd in the two
years much that should have been com
ing In for the last eglt OF ten years.
and we should not be dllured into ex-
trayagancc. or make calculations which
will not be justified 10y normal condi-
tions. by all means we should await the
next assessment OF lands before we NIX
upon the Treasury any permanent IN
crease in expenditures further than Is
absolutely necessary.
II the assessed value OF property re-
mains as IL is, some other source or reVe-
nue. will have 10 be devised. 1t IS hoped,
however. the assessment Will increase
rather than diminish. l do not feel, now
ever. that the lands OF the Common.
wealth could. i'm the continued low price
OF products. stand greater burden
than now exists If II should be-
come necessary that any existing
property should have an increased as
sessment. believe that the railroad
and some other corporations of the State
would gladly bear a reasonable one on
heir properties. They are getting more
and more prosperous every year. and the
amount of taxes paid by them In proper
ton to their income Is nothing like that
paid by other property-holders in the
State. They are interested more than all
other interests in the maintenance Of the
credit Of the State, and ii was the gene
raj understanding, 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 rail-
roads would assume said increase.
/ believe IL to be TO the interest of
every railroad I'm Virginia TO see that no
question ever arises i'm regard TO the pay
ment Of our public debt. or the interest
thereon. and that rather than see the in
tcrest forfeited for a single year. that !
these great corporations could we'll af- |
ford 10 ASSUME. and doubtless would as |
sumo. a much larger part if not the |
whole. interest fund itself; and / am not |
certain that even In such an emergency |
any very great Inequality would be i'm
posed on THIN by such a course. Our /,
present system of taxation, as applied to
railroads, Is very much less burdensOme |
that that Of many other States. All the
frst-class lines in the State are assessed
at $1,000 per mile. while it is a known
fact that hundreds Of. miles of these
roads are mortgaged at two. three, and
four times this amount. 1t is not neces-
sary for me TO call attention to the fact
that all properties 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 cor
porations to pay under our laws an in
come tax, yet before paying this income
tax they are allowed to deduct from their
income interest on three or four times the
amount of bonds their road is assessed
FOR ] would recommend 10 this Iegisla-
ture that no corporation. in ascertaning |
lis ii~ome, should be allowed to deduct
interest and bonds greater than the
Of assessment for taxation
against the property.
GUARD AGAINST FRAUDS.
Let me try to make this plain. For in
s'ahce' corporation might have net
income OF, say. $4,000. one per cent. in
come TAX on this amount would Weld the
state N,l50. The directors could easily
create fictitious debt by issuing bonds
IN excess of what are actually nego-
uated' Of. say, 100000. holding the
oohds themselves, and pay interest
oh these bonds TO themselves. which
al per cent. would be $4,000. thus on
llfey cutting the State out of the amount
u It's income tax. No such opportunity
shouId be left open for the practice of sue n !
.rauds. do not mean TO say that v
nave IN the state OF Virginia corporations !
mat "ouiu DO such things. but in this
10y y, STOCK ana bond manipulations, il
u Wei 10 provide against the possibia |
gf
Yield TO no man in my State I'M the de-
sire 70 see our railroads and an othe,
industries prosper | am in favor OF
ioing what is right between man and
man ana as between man and CORPORA
IONS. heartily favor encouraging pub
lc enterprises by showing them every
possible encouragement under the law.
ma believe the investment of new cant
al In our State is "A great and inesi-
nable benefit TO all our people. 1t gives !
'mp'oyment to what would otherwise
De idle hands; it builds up waste places 4
md stimulates trade and develops indus T
ries in every direction. Corporations. | ,
Justly and equitably assessed and taxed | I
ND held to the sole object OF their crea- ,
ION, are one Of the great forces i'm our
modern civilization in bringing into the L
each OF all men the comforts of living | [
20 long as they do not interfere In the /
'olitical rights of the people and do not 5
eek TO avoid their just share and pro- I
'ortion OF the burdens of government /
hey are blessing to mankind. In this /
onnection i would recommend. I'm order q
o relieve the railroads of burden. for I
Which 10 one gets any corresponding J
eneft. the abolition Of the Office of State /
iailroad Commissioner; and if, In the (
wisdom OF the Legislature, any such 4
Al nrf,ic set &c |
nd purposes bo clearly defined. and Il
hat It's officers be paid out of the Urea a
ury of the State. |
PUBLIC DEBT OF VIRGINIA. j
The General Assembly at its last SEES. u
Ion. for the third time opened the door c
Or the funding Of the old securities b
hitch had not been funded under the act a
( February Ia. 1852. or February 20. 1882. o
he report of the Second Auditor shows 1
hat under the provisions of this act, the &
olders of sl62, 6l9.5l of old securities sur IL
andered and had them funded and re- t
eived in lieu thereof SS4.l72. IS of new "a n
onds. This increases the century debt
} $lsOO2, 0S3.6l. AS there Is still out G.
landing small remnant of bonds with j
lx-receivabie COUPONS attached, which Il
lay continue to annoy the collectors OF | p
he States revenue and intercept a POI Il
on of her taxes. 1 would suggest that II
~ opportunity be again given to fund a
ese. under such conditions as in your al
dgment you may think equitable. al
The interest on Virginia bonds has been a.
I'D promptly under act February II. u,
&. and February 90 1892, and the pros a
cts that the State will be able TO con lie
luo to do this has largely restored the | hi
ates credit, and her bonds are now | a.
pular as an investment and have M a,