The Richmond Virginian. (Richmond, Va.) 1910-1920, 1910-09-06
Railway Men Appear Before
Commission Against In 4
crease of Tax
DECLARE TREASURES
ARE BEING DEPLETDs
Insist that Passenger Tariff Com
promise Does Not Warrant
Action-Many Papers
Filed.

Railway attorneys appearing Defor0 s
the State Corporation Commission !
Tuesday morning in the Increased taxS
assessment hearing declared that the
assessment is higher In Virginia than
in any other state OF the Union save
in New England, while the fraight@
rates are Kept at sucn a low and tin-3
remunerative figure that the roads ~
unable TO earn the profits to which A
they are entitled. %
The hearing was granted to r0pr0-N
sentatiyes of all roads operating In
the State to show cause--if SO desired q
why the assessment of the roadbednM
and rights OF way should not be tn~
creased from $4,000 a mile to $2o,~s
200, as the passenger rates have been
Increased from two cents per mile D
two and a half cents, resulting. 1t ~
shown, in a considerable Increase III
the operating
Nce-President Alexander Hamilton.
Of the Atlantic Coast Line, and Vice.
President Henry T. Wickham. of tha
Chesapeake and Ohio, consumed the
greater part of the forenoon protest~
ing against h tax increase.
Increase Would Be Unjust.
MIR. Hamilton made a very clear.
cut against the PROPOSED
increase, showing how his road would
suffer, and pointing out that the op~
Grating revenue Is now only suficient
to meet the expenses and fixed CHARGES
and yield a fair profit on the Invest
ment.
Vfce-President Wickham. when the
Chesapeake and Ohio Railway wax
called, filed with the commission ~
quantity OF documentary evidence,
which will clearly prove. he maine
tains. the injustice OF the increase.
He declared at the outset that the
railways Of the country are facing q
very grave financial situation. The
entire business OF the United States
fs in a state OF expectancy, he said.
Contracts usually closed at this time
OF the year have o been closed.
Trade in general is not as 1t should
be. There is q kind of vague un-
rest spreading OYER the IA
everyone. he declared, eeme III III
waiting for something to happen and
yet no one could tell what that
something is.
Freight Rates Very Low.
While he admitted that by Above
ing the roads to increase their pas
senger rates from . cents a mile to-
: IL cents considerable revenue was
received which would not otherwise
have found its way into the treasures
of the road, Mr.. wYckham pointed
out that the freight rates from which
the roads receive nine-tenths Of thetrx
income, had been held at a very low
figure, and that consequently Ii thor
proposed assessment were made the
railways would really lost just that
much every year.
He said that the Q Ia cent passen-
ger rate was a compromise. The
State wished to fix the rate at 2 cents.
n roads desired 1t to remain At 8
cents, but finally as the result OF sew
eral conferences agreed to accept the
2 liz cent rate without protest, little
dreaming that in consideration OF tt|
the commission contemplated an In
crease In the tax assessment.
Ratio Is Very High.
ratio of the income of the Chez
apeake and Ohio to Its expenses III
now 81 IL per cent, Mr.. Wickhafms
declared. In other words 1t takeos
81 1-2 cents TO earn one dollar. Cut
of this dollar all must h8
paid In addition to the fixed chargaos
which run into the hundreds OF thouo-
ands of dollars.
Over against this figure Mr.. Wick
ham said hat under the 2 cent pae~
senger rate. or during the period o.
that rate the ratio of operating ex~
penses OF income was 80 per cent.
showing an increase of over 3 po4
cent. since hat time.
Much of this increase can be 10
counted for In increased wages. M.
Wickham said. but many thousands
of dollars are spent each year M
materials and supplies. which cost
considerably more than they did r
few years ago.
A road is supposed to pay In taxe1u1
to each State, he said. about Z HI
per cent. of it's gross revenue In thM1s
State. The Chesapeake and Ohio on
H. -~x-- -Av -
OF them pays as much as In Eirgtnta~
In this State the road pays 8 6-lO p1K'
cent. on Its revenue; in West virgint&I
1t pays 9 1900, and in KentuckN8
2 Ito.
Should BE Equalized.
Some basis of equalization shouI&
be adopted. not only by Virginia. blk4E
by all the States through which fnGI
various roads operate. In this WAY
Mr.. Wickham declared, great lAhd16G!
and expense would be saved. 4ah{f
State knowing what they should px&6
would submit without protest YuEM
conditions. Mr.. Wickham said, MuuiE
be Infinitely better than the condtt1kSS
which now exists in many parts az #&&(
country, where the roads are In E12&&
slant opposition to the tax ~coile0ts0T|
power. and where sudden and nnn<N2
sonable increases are constantly a6x4I
Gated both In rates and taxes
where a constant war IL being w4G(
between the commonwealth and f
corporation.
Mr.. wickham was followed hy A1&8
torney Lucien Cooke. for the Ne4Go
6 Western and Attorney CONT
Baird for the Norfolk a SouthAk1S
These two attorneys covered p<a6
caliy the same ground, both ent1G
earnest protests against the pr0pQS
increase. sS@X
The hearing win occupy th6 93eg
part OF Wednesday and II q
concluded win be continued to%
future date.