The Mathews journal. (Mathews C.H. [Court House]) 1903-1937, 1910-09-15
RAILROADS FIGHT
RAISE IN TAXES
Lawyer Informs Corporation Com
mission That Transportation
Companies See Little
Promise of Better
Things in 1911.
RIG MoND. v A-special.-

X & II Nj y N ID, A--Spectal.-
Gentlemen. I am not a pessimist.
I do not believe in a business man
croakjng about business conditions II
would be decidedly an unwise policy.
however. for a business man to shut
his eyes to conditions.
The railroads of this country to-
day are facing a more serious situa-
ton than they passed through in the
dark times of 1907 and 1908. Fur
thermore, do not see that they will
be in any better condition in 1911"
The foregoing remarks were ad-
dressed to the State Corporation Com
mission in open session by for
mer State Senator Henry T. wickham.
general counsel for the Chesapeake
and Ohio Railroad.
The commission convened this
morning with Judge Rhea and Com
missioner Wingfield present. Judge
Prentis. chairman OF the commission.
arriving later.
The purpose OF today's session is to
consider the assessment OF steam rail-
roads in the State, and II was in con-
sideration of the increasing OF the as
Judge Wickham appeared on the part
OF the Chesapeake and Ohio.
Would Jump TO $4,000.
The commission has under consid-
Grafton the raising Of the present val
uation Of $4,000 a mile for single
increase in the assessment of double
track roads, which are now assessed
at $4,000 a mile.
Mr.. Wickham strongly protested
against any increase in the assess
ments and quoted from the last re-
port of the commission, showing that
no increase was thought advisable last
year.
Judge Rhea suggested to him that
the commission took no action at the
meeting last year for the reason that
the roads had just passed through a
very trying time. being naturally af-
fected by the panic of 1907 and, in
Virginia, by the burden of the 2-cent
rate, which was later raised.
Mr.. Wickham took the position that
the increase in passenger rates from
2 to IL cents a mile had not been
considered ground for an increase in
assessment. The increase, he stated.
affected only one-tenth of the earning
power OF the road, the other nine
tenths not being affected, while the
increase in assessment affects all
branches OF the roads earning powers.
Big Increase I'm Wages.
The increased operating expenses
of the railroads at the present time
are greatly in excess Of the increased
receipts, stated Senator Wickham.
THE increase in wages, which has
gone into effect this year, amounts
to approximately $350.0OO a year in
Virginia alone and other increases in
wages are yet to become effective.
TheSe increases Will eventually eX-
tend to employees in all branches
Senator Wickham then presented to
the commission prepared statement
showing the great increase in the cost
of all of the supplies used by rail
ways.
THE trough of the sea, which usu-
ally approaches business in this coun-
try during the year of a presidential!
eelction, is already upon us. stated
Senator Wickham. He then called at
tention to the fact that business con-
tracts. which are usually entered into
by this season of the year so that
goods and commodities could COM
mence moving during the early fall,
have in most instances not yet been
signed.
Il do not know this If my own
knowledge. but I am informed by
those in whom / have the most abso-
lutte confidence, that very few COM
lmercial travellers are on the road at
this time. Usually this is the season
OF year for them to do their travel
ing, but this season they have not
1come out. Merchants are afraid to
lay in large stocks Of goods under
present conditions. and as n result the
roads are affected" stated Senator
Wickham.
Chesapeake and Ohio Taxation.
Senator Wickham then called at
tention to the rate of taxation paid
by the Chesapeake ood Ohio in Vir-
ginia. He stated that il is generally
expected that roads should pay atout
2h per cent. of their total operating
revenue in taxation. In Virginia the
rate is S.59 per cent. In West Nir-
ginia, he stated, the rate is 3.13S per
cent. and in Kentucky the rate IS only
2.0I. The rate paid ~ the Chesa-
peake and Ohio on its entire system is
2.93 per cent.
Appeared on Behalf of Norfolk.
H. II. Trice appeared before the
commission on behalf of the Indus
trial Commission of Norfolk and re-
Quested that the commission take up
at this time the matter of increasing
the assessment of the real estate hold
ings of the various railroads and
steamship companies having terminals
in Norfolk.
Mr.. Trice's suggestion was strongly
opposed by the attorneys of the COM
panies involved. 1t was maintained
that the commission had made an as
sessment of these properties only two
years ago, and inasmuch as the new
real estate assessment will not go into
effect until next year, it would be i'm
proper to increase the companies as
sessment on real estate at this time.
The commission decided to allow
the matter to go over until next year,
and in the meantime it will make a
personal inspection of the properties.
The commission adjourned at 1
o'clock for lunch and will hold an
other session later in the day.
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