The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1910-10-13

boat and steamship companies, and
| sleeping, parlor and dining car COM
I panies. The latter own no property
1 In Virginia. but are licensed accord
/ ing to stature.
| No report is made as to electric rail
ways, since under the law there must
be separation OF that part of their
[ neat and power business. When this
| calculation is completed there will be
| shown an increase in this branch also.
| Being this year for the first i.
under the control OF the STA
| poration Commission. the valuations on
| light, heat and power companies and
| gas and water companies are not yet
! complete.
| The total tax to be realized by the
! State this year from the public SER
vice corporations given IN the table is
| to be s991,54s.34, an increase of S163,-
4Ss.s0 over last year.
Text of statement.
The statement issued by the COM
mission in connection with its assess
| tnents follow in full-
'On the twenty-third day of October,
1907. the commission denied the mo-
ton of the Acknowledgement to in
crease the assessments for taxation of
certain railway property In Virginia
at that time because OF the business
panic then prevailing and for otAer
reasons stated in the opinion. (Report
1907, page 1850
We have now determined for the
current year to increase the assess
ments of the roadway and tracks Eek
elusive of the value of other visible
| property of the main lines of the
standard roads in Virginia from s16,-
900 to $4,000 per mile for single
tracks. and from $4,000 to 100000 per
mile for double tracks.
THE subject OF the assessment 4
| railway properties in Virginia is one
to which the commission has given
great deal of consideration. BY reason
of the fact that in assessing the value
of visible property of the railways for
taxation, by the express requirements
| OF the Constitution. the value of the
franchises must be excepted, the prob
lem presented is most difficult one.
However difficult 1t may be, 1t is the
duty of the commission In making such
assessments of the visible property of
iathe railways to except the value OF
such franchise. The Constitution and
laws are so written, and must be
opeyed
Commercial Value.
1.-THE last impartial attempt to as
certain the commercial value of the
railroads in Virginia was made by the
United States Department OF Commerce
and Labor Bureau of the Census In
1904. and the results of that effort
are published as Bulletin No. 81 From
that document 1T appears that the
commercial value of all railroads in
virginia was estimated at s21l.sl5, 900.
"rhe total capital Stock funded debt
and all other obligations Of the rail
roads in Virginia, apportioned on
mileage basis. amounts to $423,OOO,O0O
in round numbers, and some have as
sumed that this s423.o0O,oOo is the
fair value of tho railroads. That sum,
however. includes $161, 100000 Of stock,
little of which is worth par much Of
which is quoted in the market at much
less than par. and much is net Quoted
at all. and Is either worthless OF of
nominal value, as Well as the aggre-
gate of the railway bonds, many Of
which are quoted below par. and some
Of which are unsalable. So that it is
perfectly apparent that such aggregate
of capital and obligations afford no
proper basis upon which to assess
values. II such aggregate OF such
stocks and bonds should he scaled to
the aggregate market value thereof,
lit would afford some evidence OF the
present commercial value Of the prop
erty. though such aggreguto would
greatly vary With the violent flu.lua-
lions OF the stOcE market, Even, how
ever. after belns thus scaled SIN
further reduction o. the amount thus
ascertained in asseaslrg for taxation
under the Constitu.ion anu laws of
Virginia. sholld be made by esccprinr
tho value Of tho franchise
The fact that the Constitution re-
quires the franchise to be excepted,
appears to be persistently overlooked.
If from the fair market value Of the
stocks and bonds we can find a sum
which fairly represents the value of
the franchise, and deduct 1t from such
market value, We believe that the re-
mainder4 will fairly represent the value
/ OF the roadways tracks and other visi-l
bile property, which it is the duty OF
the commission to assess for taxation.
Now the value of the franchise Is GER
tainly part Of the commercial value
OF a railroad, and was Included in the
total commercial value in 1904 of Salt
$4,000, above noted. so that the assess
ments made by the commission Of the
visible property OF the roads, exclu-
slve of the franchise, must be less than
such commercial value blythe express
mandate Of the Constitution.
Value of Franchise.
THE franchise. however,. as is we'll.