The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-04-28

Scaboard Air Line Railway Company,
G per cent. on $4,000 per mile.
Southern Railway Company per cent.
on $4,000 per mile.
Richmond, fredericksburg and Potomac
Railroad Company, G per cent. on $4,000
per mile.
Washington Southern Railway Com
pany, 6 per cent on 500, 900 per mile.
New York. Philadelphia and Norfolk
Railroad Company. 6 per cent. on Ss5co0
per mile. ~ 4.
valuation of property used In producing
these earnings and discuss at length.
Unreliable and Untrustworthy.
Tho bond and stock basis has been sus-
gested; but this is probably the most UNI
reliable and untrustworthy of all meas
ures of value of the property.
The cost of original construction has
also been suggested: but this method Is
subject to various objections, among
which is tho consideration that the facts
from which to determine original cost
ere usually too remote to be available.
Since the roads, by their, accounting
methods, charge enormous sums annually
10 maintenance of roadway and struc-
lures, and to maintenance Of equipment,
the aggregate of which sums Is annually
deducted from the gross revenues in ar
irving at the reported income. and has
heen deducted In each case from the net
incomes above given, it would seem that
they have protected themselves and are
continuing to protect themselves fnanci-
ally against tho consequences OF natural
depreciation of their property.
Under the laws of this State 1t was, for
many ears. the duty OF the board OF pub
lie works, composed OF the governor. the
auditor of Ia M ~ a ND he
urer of the Commonwealth to assess for
taxation the value of all railroad property
In this State; for four years past this
duty has devolved upon this commission,
which, in the performance thereof. has
made careful personal inspections OF all
the railroad property in the State. and
availed itself Of every practical source
of information as to the true value of
that property, and have assessed 1t as
the facts and circumstances Of the case
would. in their opinion, justify, with a
view of deriving therefrom for the State
the fair amount of taxes to which, under
tn claw, it was entitled.
The Assessment of railroad property in
Virginia under the old board OF public
works was in no single instance more
than $4,000 per mile. and under this COM
mission, has never been, up to and In
c,rding the year 1906, moro than $4,000
Ier mile on single track roadway proper,
and in may instances 1t Is much less.
After discussion of the principles gov
erning valuation. this general statement
ia made:
BY this process the commission has
arrived at the conclusion that the entire
Virginia property of no railroad COM
pany assessed by 1t is really worth more
than $4,000 per mile for the entire mile
age in this State, while tho property Of
most of such companies is worth less
In the exercise OF this discretion, the
commission deems 1t the height OF I'M
wisdom and mistaken policy to restrict
the railroad companies to the utmost
point legally permissible or anywhere
near that point. On the contrary, the
commission deems it manifestly wise and
proper that the railroads, as one OF the
greatest engines of civilizationtand pros
perity, on tho successful operation Of
which practically every industry and
every community is largely dependent,
should be given every reasonable encour-
agement and dealt with as literally as
the public interests and the welfare of
their patrons will permit
Decision of Commission.
Tho commission, therefore, in it's final
action in these proceedings has been
guided by these considerations and has
decided upon the reduction in the maxi
mum limit to passenger fares wrich 1t
orders only after assuring itself that,
even II such reduction is not fully COM
pensated by the consequential increase In
business the roads will still be left, upon
their intrastate Virginia business, such
margin OF profit upon any fair value
OF the property employed as will enable
their business to compart favorahly in
nroGt q hlnnnSS with m NJ tba
standard, businesses or tho country. and
not even approach anywhere near the
legal limit of connscntion,
After careful study of tho evidence
and of tho entire railroad situation In
this State tho commission believes
under the maximum limit Of passenger
fares as prescribed by it In this pro-
ceedng.
First That the revenues Of the railroad
companies affected will not be necessarily
diminished as compared with thelr exist
ing revenues, but may be increased
Second That, If their revenues be In
fact diminished thereby. they will not be
sufficiently diminished to work any unjust
or unreasonable reduction In their net
earning; and
Third. That since tho effect of such
maximum limit will not be to work
greater reduction in the companies' net
earnings than they could be justly and
reasonably called upon to bear, such
reasonable reduction should be applied as
FAR ms practicable to such rites as are
best able to bear 1t and most generally
affect public interest. Applying this prln-
ciple to the evidence In the case, so far
as Hdauced. we reach the conclusion,
and there is little II any evidence to the
contrary, that 1t is proper to make the
bulk of reduction In passenger fares, es-
pecially since such reduction will he
more surely and readily compensated for
by Increased business. than II similar re-
duction had been made in other class Of
traffic, The Increased passenger revenues
which must necessarily result from the