The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1910-09-07
RAILROADS FIGHT
HIGH VALUATION.
Corporation Commits
sion Evidently Has In
crease in Mind.
RAISE OF 25 PER
CENT. INDICATED
Norfolk Loses Contention for
Increase in Property Taxes.
Railway Representatives
See Ruin if Assessments
Are Increased-Decis-
ion Not Announced.


Che tax hearings given to the steam
railroads Of Virginia yesterday before
the State Corporation Commission
predict material increase in the as
sessment of physical properties of
these corporations. 1t would appear,
also, that an average raise of about
l5 per cent. may be expected.
While the commission did not give
any intimation of what it's decision
would be. 1t was not difficult to see
that 1t had a course of action in mind.
Time after time Commissioner Will
liam F. Rhea asked the question OF
the attorneys for the railroads: What
would be your Judgment as to the ef-
feet of an increase on the valuation of
the tracks and rights of way OF the
standard railroads from $4,000 to
$4,000 per mile, with an appropriately
larger assessment Of double tracks,"
This clearly indicated that this figure
had been under discussion by the
commission. Besides, the nature OF
the questionings along certain lines,
as well as comments injected into the
hearings by the commissioners, would
seem to convey the impression that
the arguments of the railroads were
not taken to be exceptionally weighty.
Roads In Bad Shape.
AS result of this increase. If it is
made, every railway company in the
State will go Immediately into bank
ruptcy. This Is inevitable, Judging.
from the long tales of woe related by
the attorneys and accountants.
Disastrous business conditions, in
creasing demands from labor organiza-
tions higher cost of corporation liv-
ing, the implied agreement of the Con-
stitutional Convention that the physi-
cal valuation should not be disturbed
for ten years, the higher rates of as
sessments on the property of railways
than on those of individuals, passed in
review before the commissions mind
for hour after hour.
If anybody wants to own Virginia
line of railroad. and can take posses
sion of it legally, he can have 1t for
the asking and with a thank you" and
perhaps cash bonus thrown In. Rep
resentatiyes of the Southern Railway
said that their road would give away
its Pittsylvania line to anybody who
would accept 1t. The late President
Spencer, it was said, had tried to con-
vey it to some unfortunate with
$4,000 cash bonus, and the Supreme
Court Of Virginia had refused to al
low the Southern to give it away.
Strong Arguments.
Time after time was the proposition
advanced that this is an exceedingly
critical time in the history of rail-
aroading. and that it behooves States to
be fair to such corporations instead OF
burdening them with additional taxa
ton. Unquestionably some of the ar
guments advanced were ably prepared
and forcibly presented, ard We're n
fact, strong statements, backed by the
conscientious opinion Of the speakers.
Commissioner r, r. Prentis took oc-
CASTOR to interpose slight objection
to the argument which was frequently
made, to the effect that there had been
tacit understanding with the Con-
stitutional Convention of 1902 that IN
consideration OF the franchise taxes
imposed by the new Constitution, the
railroads should not be burdened with
increased property valuations uhl,i
1918. Judge Prentis said that such
an agreement was shadowy, could bind
nobody, and no one seemed TO staHu
sponsor for it.
Norfolk Is Defeated.
Counsel for the Industrial Commls-
sion of the city of Norfolk advanced
to the attack, as promised, Win an
in,,,tat,on first to the Corporation
t,ommission to come to his community
and see If the properties OF railway
comnanies there should not pe au-
yanced in assessment. Wnen the com
mission found 1t could not 40 S.h,s'
the attorney. H. Fl, Trice, desired 70
present his statements at a later us.S.
At this there was STORM o. d 8 uins.,
and nrotest from the railway repre-.
aa.t anu t,,,as all of whom desired to
saaau al once upon the proposition.
T,nal,v, after the commission haa
n,isaa ~ take the matter up carry
pas.t year with a view to adjusting
.ba +axes for 1911 on perhaps new
~ Trice gracefully lowered ms
ua aIass and withdrew from the field,
oo.o nn,is,ng on the part Of the 1ndustrl-
=, - rommission, no further move thAs
year. nro,nnt,v at 10
o,o,oc,,. with Commissioners Rhea ana
vr,nrfield sitting. Commissioner Preh-
lis arrived at 10 minutes before noon.
a fter an absence from .ne o,. o,,a.s !,
a.. weeks. spent in Europe. Clerk Z.
~ 1.A uri1son and Statistical Clerk p. r.
Iona we're also on hand, while Tax
Cor,missioner D. S. Freeman was an
interested listener.
p Coast Line on Rack.
The Atlantic Coast Line Railway
was trst called, and Alexander Ham
ilton, of Petersburg, appeared Tor tn the
cbmpany, He advanced the point that
a. was the understanding in the Con-
stitutional Convention that there
woulF ,5a no increase in the valuations
nntii 1919. He said that Commission
ers Stuart and Fairfax, both OF whom
were members Of the convention and
afterwards of the Corporation Com
mission so understood It..
Commissioner Rhea remarked that
these two men had also raised the as
sessment from $4,000 to s16,0ooBa a mile
later on, and Mr.. Hamilton said he re-
garded this action as somewhat Of q
violation of the agreement.
Commissioner Rhea then preached
his "leading question" as to the effect
Of a raise from $4,000 to $4,000 a
mile, This was the first intimation
Continued on, third Pase.l