The Richmond Virginian. (Richmond, Va.) 1910-1920, 1910-09-07
RAILROADTAXATION.


in the matter of reassessment of physical values
of State railways bring forward the customary
dire predictions to the effect of amy increase
in taxes. Attorneys for all the roads concerned
profess TO see impending bankruptcy Ill any adj
vance over present assessments. Pesslmlsm
runs riot III the argument. Long established
roads, while apparently increasing the scope OF
business, are in reality operating at an ever IN
crcasing loss in net Business conditions are
bad. Wages have been increased. Traffic BUSH
ness is decreasing According to the railroad
position, another dollar i'll taxes would be the
small but vital straw upon the over-burdened
back of sorely strained corporate enterprise.
This is an old line of argument with the
Corporation Commission Of Virginia or any
other official body called upon to exercise toward
railroads the powers of supervision and control
which are now conceded to lie within the power
of the State toward public service corporations.
With all respect for the emnently able men who
prepare and argue to this effect, the argument
itself barely escapes the suggestion of farce 1t
is all in the routine Nothing is quite SO human
as to resent tax. Nothing so much as tax
spells financial disaster TO the individual or cor
poration from whom the tax is collected. In
this respect the railroads are human. The sug
geston of IA reassessment is sufficient to throw
them into panic The suggestion of actually
increasing the assessment appals them. To their
harried senses the proposal is outrageous. They
protest-deeply, vehemently-" Even as you and
z,
Stripped of its technicalities the question OF
physical taxation of railroads is as the question
of the taxation of real estate belonging TO in
dividuals. The value of the property is tang
Bile thing to be estimated IN accordance with the
value of its surroundings, location. and earning
power. Physical value is relative term, not
outstanding its restrictive meaning. Under the
theory of equable taxation a mansion i'll the
mountains has not the same physical value as
residence in city, but under the same principle
a store in city Is not to be taxed absolutely up
on the valuation of the stone iron and mortar
Of which it is constructed. 1t is not even to be
taxed strictly in accordance with the character
of its owners business for the season. But il
is to be taxed according to ITS cataIe, rightly es
timated III accordance with it's possibilities.
Virginia railroads have in this matter beer
treated with the greatest consideration. The
assessment of $4,000 mile is manifestly low
one. The tentative increase to $4,000 a mile
is an emnently reasonable one i'll public opin
ion. 1t is a conceded fact that the obtaining as
sessment was held down as a result of reduction
in passenger fares, which itself created pro
test which, if not Needed was certain to bring
to pass the everhreatening bankruptcy. The
bankruptcy did not come TO pass, and steadll }
the rates established have been increased to
basis of compromise entirely fair to the railways
The reasonable increase in assessment on this
ground alone, if on none other, is merely com
pensatory m character.
In the argument on Tuesday Counsel Wick
ham, of the Chesapeake and Ohio, made two con
tentons which we think should be examined
In the first place he states that the organization
Of the Corporation Commission was as tribunal
TO stand between the railroads and the public
In the second place he contended that the in
crease of half a. cent in passenger rates was q
negligible quantity so far basing an increased
assessment was concerned, since 95 per cent Of
the business was derived from freight charges
If this be true, two great mistakes arose in the
handling of the passenger rate agitation; first
in lowering the assessment of physical property
by reason of the passage of the lower rate fol-
passengers; second in afterwards raising this
rate TO point negligible to the railroads but Of
constant and continuing importance to the body