The Richmond Virginian. (Richmond, Va.) 1910-1920, 1910-10-13
RAILWAY TAXES INCREASED

HALLWAY lAXtS INCRtAStD
Continued from First fage.)
their property used in conducting
light. heat and power business When
this calculation is completed there viii
be shown an increase in this branch
also. Being this year for the first
time unoer the control OF the State
corporations 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 pubic service corporations given
in the table Is to be 3ssl.a4s an
increase of $3.50. $3.50 over last year
According 10 the instruction or the
chairman of III. commission, Judge
lobert X. Prent,s. the clerk OF the
commission has forwarded "A copy If
the schedule with the opinion 10 the
State auditor of public accounts. who
receives sli assessment books.
Full Statement.
The statement issued hv the com.
mission in connection with it's assess
rients follow ia full;
ION the twenty third day OF oeto-
Der. 1897. the commission denied the
motion of the attorney. general 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 other
reasons stated in the opinion Report
1907, page ias.)
We have now determined fer the
current year ~ Increase the aksess-
nlents of the roadway and tracks tex
elusive OF the value OF other visible
property OF the main lines OF the
standard roads in Virginia from sl6.-
QUO to $4,000 per mile for single
tracks, and from So, 600 10 $40 uaa
per mile for double tracks
The subject Of tne assessment OF
railway properties In Virginia IL one
In which the commission has given A
great deal OF consideration. by reason
of the fact that in assessing the value
OF visible property or the railways for
taxation. by the express req airements
uf the constitution. the value OF the
franchises must he excepted the prob
lem presented is most difficult one.
However difficult 1t may be, II 10 the
duty of the commission In making
such assessments of the visible prop
ertr OF the railways To except the value
OF such franchise. The constitution
and laws are SD written. and must be
cbeyed.
The last impartial attempt 10 as
certain the commercial value of the
railroads in Virginia was made By
the United States department OF COM
merce and labor. bureau OF the CEN
sus, in 1904, and the results Of that
effort are published ss Bulletin No. FL
From that document ii appears that
the commercial value or all railroaGs
2 In Virginia was estimated at s2II-
$4,000.
Total Figure
The total capital stock founded
debt and all other obligations OF the
railroads In Virginia. apportioned on
mileage basis, amounts to &42sooo.-
600 in round numbers and some have
assumed that this .&se3. 600, 600 il the
fair value of the railroads. That sum,
Z however includes $1s1O000oa of
stock. little OF which IL worth par.
much Of which liz quoted in the mar
ket A. much less than par. and much
Is not quoted at uil and 10 either
worthless or of nominal value, as well
as the aggregate of the railway bonds
& many OF which are quoted below par
and some Of which are unstable SO
that 1t IL perfectly apparent that such
aggregate OF capital and obligations
anord no proper basis upon which to
Assess values. II such aggregate of
= such stocks and bonds should be sea led
to the aggregate market value there
vs. ~ "ouIu AHuFu some evidence OF
the present commercial value OF the
property. though such aggregate would
greatly vary with the violent fiuc-
tuations OF the stock market Even
however. after heing thus scaled a still
further reduction OF the amount thus
" ascertaincd in assessing for taxation
under the constitution and laws Of
Virginia, should be made by excepting
v the value OF the franchise.
The fact that the Constitution re-
Qutres the franchise to be excepted
appears to be persistently overlooked.
IL 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 il from such
market value. we believe that the re-
I. nlainder will fairly represent the value
OF the roadways. tracks and other visi-
bic property, which X Is the duty of
the commission to assess for taxation
4 Now the value Of the franchise is GER
i tainly part OF the commercial value
OF = railroad. and was included in the
total commercial value In 1904 OF $211-
4, 1000. above noted. SO that the assess-
ments made by the commission OF the
i Visible property az the roads. exciu-
IN aive of the franchise. must be less than
81 such commercial value. by the express
mandate or the Constitution.
~ The franchise. however. az Is well
Il, known. 10 subject to State tax and
+ u reached by. the imposition OF q tax
II ~ per cent. OF the gross transpor-
I tAtion receipts in Virginia. This tax