The Richmond Virginian. (Richmond, Va.) 1910-1920, 1910-09-08
AGAINST
INCREASE TAXES
Public Service Corporations Ar
que in Favor of Lower
Rate.
CUT DOWN THEIR PROFITS
Virginia Concerns Say They
Would be Seriously Hampered
aud Embarrassed by Action.

-Four public service corporations
appeared before the State Corpora
uGn Com mission Thursday morning to
protest against the proposed increase
IN hte Tux assessment. Representa-
ives ~ SaGii concern fIed statements
showing the financial condition OF the
companies, each declaring that his
company would be placed in a very
en- narrassing position of the assess
ment were increased.
Secretary FL. s. Jones, of the Cliff
ton Forge Light and Water Company.
was the first witness. This company
~ now compelled 10 pay some $500
annually. he said though il has re-
Gently sold its lighting plant to the
tlifton Forge Public Service Corpora
ton.
Mr.. Jones said his company was
capitalized at $4,000. Its manage
mont ny conservative and economic
methods have succeeded in placing il
upon a paying basis, but il the com
mission raises the tax rate. he de-
clared, the earnings justly belonging
TO the company will be consdera =
reduced.
In behalf OF the Clifton Forge Pub
lie Service Corporation. it's secretary
and treasurer. Mr.. Ambrose c. Ford.
took the witness stand This com
pany recently organized with a capt.
tai Of 100000 authorized has just
begun business.
Would Hamper Business.
Its annual taxes, Mr.. Ford explain
ed are already very high. though as
vet 1t Is impossible TO accurately esti-
mate the yearly income of the COM
psny, as 1t has been In operation less
than twelve months. He therefore
requested that the Corporation Com
mission allow the rate to remain as
ii is, or at least raise it no higher.
as such action, he said, would seri-
ously hamper it's business.
The Radford Water and Power Co.
was next called, and Its representa-
tive, Mr.. II. l.. Jordan, filed detail re-
ports showing the complete operating
revenue and expense for the current
year.
This concern, Mr.. Jordan said, re-
ceives annually about $4,000 but OF
this s20,000 is paid out for expenses
leaving a net earning of only IS, 900
The tax assessment already cuts heav-
/ lily into the profits of the company
! he declared, and II the assessment IL
| raised the company will be placed In
such condition that much smaller
return will be received from the in.
| vestment.
Colonel James p. Woods appeared
| for the Roanoke Electric Railwa,
| Company. This concern. he said. wa
| taxed last year on an assessment
| basis in excess of the actual value o
the property.
The trackage cost. he declared
| about 5000 mile. and could b.
| duplicated for less than $4,000, ma
| toriai being more expensive thar
when the line was built. Yet the as
| sessment Is In some instances thre'
/ times the actual cost, and this he be
| lieved unjust. as the company wa
| making only a fair profit upon its in
! vestment
Wants Rate Raised.
When the Newport News & Water
Company was called Commonwealth
Attorney st. George Wilcox. of War
| wick county. explained that the com
pany derived Its water supply from MI
| county, and that he wished to submit
figures showing that the taxes of th'
| concern should be increased.
The auditor of the company, Mr.
| W. p. Lfvezey, had already filed yer,
exhaustive report, but he agreed, af
| ter conference. to acquiesce to som'
Of the attorneys suggestions. The re
port was made to coincide with thei
| views in this matter and the cas'
/ closed.
Attorney T.. e Montague. represent
! ing Elizabeth City county. addressed
| the commission when the Newpor
News S Old Point Railway, the Citi
zens' Railway & Light Company anc
the Newport News Gas Company wer'
Jointly called.