The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1910-09-24
RAILROADS ASKED
FOR COST FIGURES
Statements OF Construction Ex-
pense Requested by Tax
Commission.
P PROBLEM is IMPORTANT
Legislature Will Provide for
Methods Of Taxation After
1913.

| Calling for a statement Of the cos,
| CT demonstrating their lines on tn,
| basis of the present construction
| charges. including every phase of road
J building and maintenance from tho
| cost of iron rail spikes to tho cost OF
passenger stations, circulars were sent
| out yesterday to all tho railroads VI
| Virginia by the State Tax Commission
| These circulars are the first step II
a physical valuation Of the rallroada
which is being made by the secretary
Of the commission. Dr. Douglas g.
Freeman. in the study of railroad tan
alton. Whtn these are returned and
certified by the railroads. they will
be tapuiated and will be made the
LASTS OF a new system of railroad
assessment which will be recomme nd ed
by the Tax Commission to the rex.
General Assembly. The companies are
required, under the ruling of the com.
mission, to furnish these figures AMI
have expressed Willingness to do So
Information Is necessary.
When asked yesterday regarding the
object OF the Tax Commission in Sc
curing this information. Commissioners
Freeman gave out the following state
n,ent:
THE Tax Commission, after FUZZY
the question of railroad taxation
should receive its attention and tina,
every possible aspect of this great
subject should be investigated. or
course the assessment OF railroad
property Is in the hands of the Cor
poration Commission. and Will so re-
main as long as the provisions OF tn.
present Constitution are in effect.
After 1918. however. the General
Assembly will have authority to pre-
scribe the methods by which such
taxes are imposed. and this in turn
VIII require great deal OF statistical
Information. When the matter was
first discussed, Chairman Prentls OF
the Corporation Commission expressed
his desire that the Tax Commission
should consider the subject, and under
stands fully that there is no conaic,
between our work and that done by his
commission.
! from the railroads because we are con.
| WINGED tina, 1t Will be possible to reach
| q correct valuation OF the railroad
| property from the basis of the cost OF
reconstruction. II the railroad are TO.
| DAY more valuable than they were
| when they were constructed, the
| Increase in value is due to tn,
| privileges which the railroads have
! enpoyed and in consequence, the
| Commonwealth has right to snar.
in this increased valuation Just as i
| shares IN the increased valuation o
other real estate. The simple cost o
reconstruction, however, is by n,
| means a correct basis for the assess
ment of railroad property In itself
Some railroads are much more pros
Porous than others with equal holding:
and some companies are making larg,
dividends where others are barrel,
meeting their running expenses. Al
of these facts must be taken In con
'slderation when adding to the cost o
constructing the railroads or deduct
ing from that figure In valuing thel
property. The system upon which WI
are working at present, while not We
complete, will work out about the
same valuation for railroads as tina
now in use In the most progresslv,
States and will. we believe, be mucl
simpler In the end"
In addition to this work, the Ia.
Commission is busily engaged In tn,
/ study Of insurance and bank taxes
The tables for the insurance tax
which have been prepared Jointly b,
the secretary of the commission ant
by the Insurance Bureau, are almos
ready and will soon be given out. Re
ports on the bank taxes are being re
ceived daily.