The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1910-09-09

.he state Corporation commission dur
ing the tax hearings yesterday, cor
porations existing in Virginia as mere
auxiliaries to companies operating in
other States. and which receive no
revenue of any sort in the jurisdiction
OF the commission. can be taxed only
on their,physical properties, and not as
to their franchise. This was decided
In reference to the case of the Bristol
Goodson Water Company.
Cases of this sort, wherein new
points arose. were numerous before
the commission yesterday, in view OF
the faci that light, heat and power
companies, and gas and water COM
panies, are this year, under law
passed by the Legislature at it's last
session. placed under the control of
the commission. AS result, there
was much variance in the methods
used by the corporations in making
UP their tax returns and their repre-
sentatives were kept busy In cxplain-
Ing how the figures We're arrived at.
Differing Methods.
In some cases tho estimated actual
present value of the properties was
returned. under the heading provided
In the blanks to record the cost. In
other Instances the actual cost was
recorded. Notwithstanding the prop
erty might have been In use for many
Years and had greatly deprecated
Still others essayed to report what ,ha
same property would cost to-day.
1t was not the intention of the Cor
poration Commission. explained Chair
man Prentis, to fix the assessment at
the original cost. especially when. as
appeared In one case. the iron pipe
winch was given in had been III the
ground for eighteen years. The cost
hgures are to be used as basis for
estimating the valuations,
a. 3. Whitaker, city attorney for
Bristol, Tenn, appeared in reference
to the water matter there Some two
years ago 1t appears that city pur-
chased the property Of the Bristol.
Goodson Water Company. of Tennes-
see, which had the franchise for sup
plying the people of the city with
their water supply. There was also
In existence a Bristol Goodson Water
Company. of Virginia, which was ac-
CURED at the same time. Later, the
latter concern, as holding company
for the city. purchased two springs
In Washington county, Va, laying a.
pipe line between one of them and tho
Stare line. The Virginia corporation
mas no income from any source and
merely holds the title to the property.
The city takes the water at the State
line and sells 1t to the people of Bris-
toll, Tenn. disposing Of none of IT to
any citizen of Virginia.
Won't Pay for franchise
When the situation was explained,
the commission ruled that 1t could
not charge a franchise tax against the
Tennessee city, as 1t does no actual
business in this State. The company
was, however, required to report the
value of It's real estate and pipe line
to the commission for assessment and
taxation. There was no contention on
this point
A contest arose over the assessment
of the property Of the Newport News
and Old Point Railway and Electric
Company. 1t was not entirely dlspos
ed of, tho commission agreeing that
1t would hear any further arguments
on Tuesday morning. September 10.
Judge z. E. Montague. Common
wealth's Attorney of Elizabeth City
county, appeared and stated that he
thought the assessments in some in
stances were too low. He objected
to an apparent decrease in the COM
pany's property value In his county
as represented by the returns. The
answer was made by General Man
ager Butler, who hrst took up the de-
crease In trackage of the Hamps Son
Roads Traction Company, an affiliated
concern. 1t was shown that this COM
pany reported 2.43 miles of track last
year, and this year has only .SS of
main line and IL of siding. The ex-
PLANTATION was that this siding Is an
unused track which runs to old car
barns which have been abandoned.
Low Valuation.
Coming to the property Of the New
port News and Old Point Railway
Company, Judge Montague inquired
as to some new property purchased at
Buckroc Beach. The land owned by
the company there was given in last
year as $4,000. and during the year
a lot was purchased at $4,000. the
increase in the tax returns being only
$2,5O0, or $4,000 in all. This, of course,
was exclusive of buildings, which In
Guide the hotel. In addition, an old
path house has been torn away. and
replaced by one costing $4,000 The
commission raised the assessment s5,-
600, making it $4,000 on the land.
Ihen Judge Montague raised ques-
ton as to the valuation of the COM
pnnys power house and machinery. It
NEUTRALITY-SUSPICIOUS.