The times. [volume] (Richmond, Va.) 1890-1903, 1902-02-04
Tie Taxation Ordinances.

The Taxation Ordinance.
Editor Of The Times:
Sir.-Permit me to express my deep
disappointment and alarm. at the report
OF the Committee on Taxation Of the Con-
sttutional Convention.
The splendid work whict has boon done
up to this time. encouraged me to believe
that this complicated and difficult task
would be handled with equal ability, and
that the State would be entirely and for
ever relieved OF the unequal and unjust
system of taxation. which has grown up
under the present Constitution. and which
the Legislature seems powerless to rene
dE. l fail utterly to dcover the ..rrt-
umph of Principle. proclaimed in your
Leader OF the END inst. except the priri-
ciple of injustice and base submission to
corporate power What are the most
ini1uitus features Of this ordinance?
l. 1t fails utterly to provide any
means by which the property of the State.
real personal and corporate can be as
sessed fairly and cquitably for taxation
That is the great difficulty under our pres
ent Constitution. There is 10 commission
or Board of EQUALIZATION for adjusting
ano equalizing assessments over the State.
There should he one taxation, one rule,
one principle applied everywhere and to
every species OF property. and only one.
2. The ordinance reported by the
committee, printed in the Leader, pro
vides that real estate and tangible per
sonal property shall be assessed at their
fair market values to be ascertained as
prescribed by law; but that railroad prop
crty is to be assessed in the manner now
authorized Under the laws of the state
viz: that each corporation shall report
annually to the Auditor Of the State the.
amount and value OF its property IN the
State which is duly sent to the Board
or Public Works and adopted by them as
the taxes Of taxation. What is the re-
suit? Why, that railways like the South
ern, Chesapeake and Ohio, Norfolk and.
Western. which cost over $4,000 per
mile, and are bonded and capitolized at
$iGO. 600 per mile are assessed to pay taxes
at $4,000 per mile. Is equality no longer
equity? Why assess the real and personal
estate of persons at fair market value i'll
manner to be prescribed by law. but
when you come to a corporation, adhere
TO an antiquated and deficient system,
which has proved utterly abortive and
disgraceful to the State, because OF its
unequal and unjust operation:
would like to ask The Times what
principle has triuInplled in that section
Of the Constitution. cannot believe that
the convention will ever incorporate such
II provision in the Constitution of the
State 1t would place a stigma upon the
body, which would render the proud WORK
Which has been accomplished up to-tHlss
time, imperative and void.
s. But worse still, it authorizes the
Legisla ture to place an income TAX upon
the salaries of clerks and others recelV-
ing over 5000 per year, but expressly III
hibits it from laying any tax upon the
net income Of railway corporations or
from taxing their real and personal prop
ertv at any higher rate than is imposed
upon individuals.
Now, if that is a good rule which works
both ways, the Legislature cannot I'M
nose an income tax on its citizens, else
it can tax an individual twice or at
higher rate than ii can Il corporation, pc
cause one is taxed first upon all real ana
personal estate and then upon the income
there Of over $500 While the corporation
is taxed at nominal sum fixed by it
self and cannot be taxed on its net IN
come Here we have the triumph of the
principle that citizens property may
be taxed twice, but that railway prop
ertv shall be left to its foreign owners to
say whether it shall be taxed at all and
how much. That means nothing less
than that the people of Virginia are stu
to be ruled and ridden and oppressed by
tbe railway corporations, reaping where
they have not sown and gathering where
they have not strewn.
Gentlemen of the convention, do you
mean to give us autonomous government
or not?
But there is another omission or defect
A. All the stocks, bonds. mortgages,
&C. of railways are expressly exempted
from taxation, itbecausc for sooth thclr
extra ordinary and anomalous rights, prl-
yileSes and franchises will be for the 1lfst
time assessed at per cent. upon tier
nropertv incomes. But the mortgage
held by a citizen upon realty which IS
assessed ana taxed at its sui market
value is not exempted. 1t is no Longer
true that what is sauce for the goose
is sauce for the gander. These aruflclai
persons, which are the creature ol law,
endowed with the right Of succession ter
ever, the members of whose rlann';Gtlc'lts
are exempted from personal liability for
their acts are made of different clay from
the natural person, and as such not hetu
accountable for the support Of the state
government. That railway franchise is
an entity distinct from its roadbed. roll
ing stock. &C., that it has always been
held to be property by the courts. ana
as such liable to taxation by the State,
as such cannot be denied. 1t IS equally
susceptible of demonstration that the
mortSageor of a piece of realty becomes
TO that extent the owner OF the property
and should be exempted from taxation
like the Board and stocks of the rail-
wav, if the realty is assessed and taxed
to its fair market value; but this ordi-
nance fails to do so-why?
Yours truly,
RICHARD " GAINES,
Mossingford, Va, Jan. q, 1902.