Evening star., 1909-04-25
STATE FUNDS SHORT
Virginia Likely to Face a Sc
rious Deficit.
MAY PUT TAX ON COAL
Belief That This Will Be Necessary
to Raise Revenue.
NEW NAMES FOR GOVERNOR
Democrats Discussing Echols of
Staunton and Capt. Lee of Fair
fax-Mann-Tucker Debate.
Special Correspondence Of The Star.

Special Correspondence Of The Star.
RICHMOND, Va. April "a. 1909.
That the state of Virginia will face
a deficit by the first day of July is the
belief Of many persons who have studied
the question of the finances. The gen
eral assembly of last year appropriate ted
money with a lavish hand. When the
general assembly began work there was
a surplus in the treasury Of more than
a million of dollars. Today there is not
anything like that sum. Before the first
day of July there are to be heavy drafts
on the exchequer of the Old Dominion,
SO that what there may be at this time,
and it is less than $35OOOO. will be wiped
away. July 1 the state will have to
pay the interest on the public debt, which
amounts to nearly S425,OOO. Then there
is the sinking fund, which is to receive
about $125.OOO for the retirement of
bonds. The expenses Of government have
to be met-the payment Of salaries. court
expenses. the payment of money to the
various institutions. Just how much the
deficit will be no one can tell, but that
there will be a deficit is the confident
belief of those who are in touch with
the affairs of the state
The whole trouble seems to have been
that the legislature ran things with
too lavish hand. Salaries of sheriffs.
sergeants and others were increased by
fees, schools were well remembered, the
highways of the state came in for a
good big sum. some of the state insti-
tutions got an additional appropriation
and money went to all sorts of enterprises
and undertakings for the benefit of the
people of the state. The result is that
there will have to be scrimping in many
directions by the next general assembly
and rigid observance of laws of economy
been appropriated and to guard against
the large increase in the criminal ex-
penses Of the state. which shows q dis
position to grow out Of all proportion
to the returns made by property owners
Of values for taxation.
Will Impose Tax on Coal.
That there is to be q determined effort
made to impose tax Of not less than
2 cents ton on the coal output in
this state by the. next general assembly
is expected. There is reason for this.
The state is not running even In the mat
ter OF revenues and win have to look to
other sources Of taxation than those al
ready on the books. Coal pays no tax
whatever. The operators are shipping
some millions of tons yearly from the
state. and there is a desire to get at least
a small revenue for the state for the
mineral wealth which is being extracted
ana sent 10 Olner states ana countries.
The imposition of a tax Of cents q ton
on the output at the mouth of the mine
would mean a big return to the state.
The state must have the money, and
when 1t becomes known that there is a
deficit there will be strenuous move on
the part of the institutions and depart
ments to compel the levying of tribute on
other subjects for the purpose Of raising
money with which to meet what has been
given to them and to guard against any
reduction, for in many instances there
have been contracts made and improve
ments commenced with the expectation
and belief that the same sums would be
forthcoming at the hands of the next
general assembly.
The southwest section of the state is
alive with mineral resources the coal
and coke output being something enor-
nous. That the members from that sec
tion. with the backing of the coal-carry-
ing roads, will make a fight against the
tax there is not the least doubt. The
railroads own the coal mines-that is,
the same persons who own the roads
own the mines under different names
This proposition was attempted at the
last session and was defeated by a mar
row margin, though all the minority
members of the legislature were arrayed
against the measure. The belief is gen.
eral that 1t will become law next win
ter.