Daily press. [volume] (Newport News, Va.) 1896-current, 1910-05-11
ESTIMATED REVENUE
MAT ERlALLY AFFECTED
n Contention Of Counsel for Compan-
les Were Sustained, Sixteen Hun
bred Dollars Assessed Against tiec-
trio, Gas and Water Corporations
Could Not be Collected.

Although counsel for the local cleo
trio and gas companies contends tnat
these companies are exempt from
city tax under the terms OF a law
enacted by the general assembly our
ing its last session, the license tax or
dinance as adopted recently by the
city council for the coming hscai
year, imposing license taxes aggregat-
ing 81 500 on the electric, gas and
water corporations. will stand without
amendment. and if the companies 90
not comply with the provisions OF the
ordinance the matter will be fought
cut in court.
City Attorney J. A. Massie stated
to a representative of The Daily Press
last night that he is confident that
the law referred TO does not exempt
the public service corporations from
payment of license taxes, and that he
will advise that the city 20 ahead with
the enforcement of the ordinance as
it stands.
City Would Lose $1,000.
The license tax ordinance for the
coming fiscal year fixes the license 10
be paid by the Newport News Light
e. Water Company at $1,000; that to
be paid by the Citizens Railway, Light
ard Power Company at $500. and that
to be paid by the Newport News Gas
Company at $500. therefore, if the
companies are exempt from this tax,
the city will not collect 81 500 OF
its estimated revenue for the coming
year.
The law upon which Z. NJ. BraxtOn,
counsel for the electric and gas COM
panies bases his contention that the
corporations are exempt, is an act
which authorizes the State corpora
ton commission to assess the proper
ty of the companies for taxation, and
to levy a tax upon them for State
purposes.
The Law.
Mr.. Braxton's contention is based
upon section Z of this act, which reads
as follows:
LIVERY corporation coming
within the provisions of this act shall
pay to the State an annual State
franchise tax, equal 70 one per centum
of its gross receipts, for the privi-
lege of exercising its franchises in
this State, which, with the taxes here
inbefore provided tor, shall be in lieu
of all taxes or licenses charges what
sOever upon the franchises of such
corporation, and the shares of stock
issued by it. and upon all its proper
ty as hereinbefore provided: provided,
that nothing hero contained shall
exempt such corporation from the an
nual fee required by section one hun
bred and fifty-seven of the constitu-
ton, or from assessments for street
and local improvements, which shall.
be authorized by law, or from the
county, city, town, district or road
levies hereinbefore provided for: and
provided further that nothing herein
contained shall annul or interfere
with or prevent any contract or
agreement by ordinance between such
corporations and municipalities as to-
compensation for the use of the
streets or alleys OF sucn municipal
ties by such corporation"
Mr.. Hsssie Willing to Fight.
City Attorney Msssie contends that
this section only exempts the COM
panies from further State taxation,
and has no bearing upon e license
taxes levied by cities. He says he
will be very willing to give the com
panies fight in court on the PROPOSE
ton If they attempt to evade pay
ment Of the city tax.