The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-09-28
CLOSE ARGUMENT IN
RAILROAD TAX CASES
Early Decision Is Expected from
the State Corporation
Commission.
LAWYERS ABLE SPEECHES

Though largely in reiteration OF the
great arguments submitted to the Cor
poration Commission In the railroad
tax cases on Thursday attorneys for
the opposing sides spent nearly tour
hours In further discussing the subject
yesterday, when the commission took 1t
under adviscment, with prospects OF an
early decision.
The matter Is one OF sweeping I'm.
portance to the companies, as well as
to the State, and there is much coca
sion for an early opinion. as pending q
settlement of the question the clerk
OF the commission has had to refrain
from making up the new assessments
upon the property of the roads involved.
He has completed this work with refer
encc to the smaller lines. which will
not be affected. whatever shall bo the
decision of the commission, and Will
begin on the others as soon as TIL.
opinion is handed down. 1t will be
recalled that prior to the fixing of the
assessments for the present year the
Attorney General notified the commig.
sion Of his intentions to move to
change the basis. and this motion was
predicated upon the assessment of last
year.
There were four speeches yesterday,
and they were all clear-cut and able.
In No Defiant Spirit.
Those OF the railroad attorneys were
more in the nature of pathetic appeals
for mercy than along the line of de-
tiancc OF State authority. and they all
pointed out eloquently and earnestly
that the proposition of the Attorney
General. II carried into effect, would
almost. II not qu.a wipe out the earn
ings OF the companies. so far as vir-
ginia business Is concerned. They did
however. absolutely deny the authority
OF the commission to assess the fran
chise OF u railroad company, and they
cited the Constitution in support of
this denial The Acknowledgement ad-
mitted In his argument that the fran
chise of railroad cannot be assessed
for taxation by the commission but
his proposition Is to tax the companies
on the market value Of their stocks
and bonds. first capitalizing the fran
chise tax and deducung 1t from sucli
valuation. He would capitalize the
franchise tax on basis OF s125 on
the 800. which is regarded as the min
imum average tax paid for all pur-
poses In Virginia. both State and local.
Mr.. Lucien II. Cooke, representing
the Norfolk and Western. was the
first speaker when the commission con-
vened at 10 o'clock
Mr.. Cooke had before him the sta
tisilcs submitted by the Attorney
General. and he discussed them at some
length, undertaking to break down the
deductions drawn theretrom. He de-
clared that in view OF the increased
cost OF labor and all kinds Of ma
teriafs. and OF operating expenses in
general, his road could not stand an
increase of its taxes at this time.
Mr.. Hunton Speaks.
Hon. Eppa Hunton, Jr., appeared for
the Seaboard Air Line, and he went
over the entire situation with great
care, discussing the constitutional fea-
lures In very able manner. Mr.. Hun
tons closing appeal was strong one.
and he submitted that the proposed
change in the method of assessment
would work decided hardship upon
his company.
Hon. c. V. Meredith followed. rep
resenting several of the roads In
volved, and he submitted very able
argument along the general lines of
those OF his predecessors.
Judge w. J. Leake spoke briefly,
but ably. for the Washington South
ern, and the case was closed in
strong effort Of over an hour by At
torncy- General Anderson on behalf of
the State. AT times Major Anderson
grew vigorous In his contentious that
the companies should pay more taxes,
and his closing effort was regarded as
an able one. The commission will
probably decide the matter next week.
1t was enormously stated yesterday
morning that the Norfolk and West
ern had earned last year 100000 per
mile. The figures should have been
$4,000 a mile.