The Richmond Virginian. (Richmond, Va.) 1910-1920, 1910-09-07
DECLARE TAXES
NOW TOO HIGH
Roads Protest Against Increase
OF Assessment Proposed
by Commission
OPERATING EXPENSES
RAPIDLY INCREASING
Insist That Rate in Virginia is
Already Higher Than Else
where--lncomes Shrink
ing Every Day.


re Stdle corporation commission
"Wednesday concluded the increased
tax assessment hearings granted to
the steam railways operating in Fir-
Stnfa, and took the question of ad-
sancing the tax from about $4,000
mile to $4,000 under advisement.
All the reports and statistics fled
by the roads viii haze to he carefully
gone through before any decision can
be reached. IL is well understood.
however. that the commission is con-
semplating a considerable advance in
lhe assessment and Is by no means
convinced that the railways are in
the bankrupt condition which some OF
.he witnesses have pictured.
Thursday representatives of electric
lines, heat, power, gas and water com
panies will be given chance to show
why the assessments OF the proper
ties OF their concerns should not be
Increased. Telephone. telegraph. ca
nal lines. steamboat and express COM
panies win be heard Friday.
Three More Heard.
In continuation Of the hearing
Wednesday morning, representa lives
Of three railway companies appeared
10 protest against the proposed ad-
rance.
Assistant General Counsel II. s,
Morrison. Of the Carolina. Ciinchfield
and Ohio, was the first 10 take the
stand. He declared the increased as
sessment would be unjust If applied
10 his road. as the expense OF opera
ton In almost daily increasing. while
large funds are constantly required
for improvements and maintenance OF
way. conditions in that section OF the
State being vastly different from those
existing In the eastern counties
The coat Of the road he estimated
at $4,000 per mile, though In several
instances. he said, where unusually
heavy cuts or fills had TO be made,
the cost was many times that amount.
The bonded Indebtedness OF the COM
pany liz, according to papers filed by
Mr.. Morrison with the commission.
about SIS, 900. Geo.
Its Revenues Cut Down.
Colonel J. III. McCue. representing
tha Virginia and Southwestern Rail-
way Company, was next heard HE
sttl.rnitted n number Of reports giving
In great detail the operating expenses
IF the road together with its Income
from all sources
The principal source of revenue,
he showed. il In coal transportation
Until recently the road handled this
traffic according to tariff schedule
charging from s1.0S a ton To sl-l5.
A according to a ruling OF the commits
ElPts hAt INTO N}iSNA u SilpiA tAAIaF &ASF
this oil dschedule had to he abandon
ed, and fiat rate of IS cents per
ton established, this new rate causing
an enormous falling off In the rev
snue of the road -
Competition has also developed In
sts territory. Colonel McCue declared.
which Ia still further cutting down
the business OF the road. while with
sha cost Of operation and mainte-
hi y, IL tr.sF
Ing. the company so barely able TO
show fair surplus at the end OF the
year.
The road is now taxed approx
mateiy per cent. on its gross In
come, IL was pointed out. while the
greater trunk lines are required to
pay only from per cent. 10 per
cent. this being in the opinion OF
the witness manifestly unjust,
Can Barely Pay Dividend.
Mr.. w. ID. Duke treasurer Of the
Washington and Southern. and as
sistant to the president. followed Col
onel McCue. The Washington and
Southern. he said, is barely able TO
pay per cent dividend upon its
outstanding capital stock, as IL Is tax
ed over 3 IL per cent. OF Its gross
receipts by the State
The books at the close Of the year.
the net revenue of the road of at
least s40.on0. due to the increased
cost of operation.
Including Its Potomac yards the road
now pays In tax assessments $32. 500.
Its assessment on trackagc and right
of-way. exclusively of the yards Is, Mr..
Duke declared. unusually high, and II
the commission insists upon further
advancing the tax the road will be
placed in position of unusual hnan-
rial embarrassment and win be un-
able to complete the improvements
now contemplated.
would Work Hardship.
President William III. White. of the
Richmond, Fredericksburg and Poto-
mac railway. also chief executive of
the Washington 4 Southern. also add
dressed the commission against the
proposed increase. He showed the
relation of the two AFFILIATED roads.
and declared that the contemplated
advance would work IA great hardship
upon them.
The last witness called was Attorney
w. ID. Cardwell. who represented the
Sandusky g. Cumberland railway He
concurred in. what the other attor-
neys had said. and pointed out to the
commission that his road would be
similarly embarrassed and hampered
the tax assessment were Increased
~ contemplated
Regarding the re-assessment of rail-
way holdings In the several cities in |
Virginia in the nature Of yards or real |
estate, the commission has decided to !
postpone all action until next year, |
when q new appertionment VIII prob |
ably be made.
Mr. III. II. Trice. representing the in |
dustrial commission OF Norfolk, took |
the stand by permission Tuesday after |
noon, and asked that q new assessment |
be made OF the real estate holdings OF |
Ill railways and steamship companies |
having terminals In his city. To such /
action many railroad attorneys OBJ |
iected declaring that as the assess |
ments were made only short time ago
and would not go into effect until next /
year q re-assessment at this time
would caiise tho utmost confusion and !
would only result In naisundsrstand-
tn1A