The Mathews journal. (Mathews C.H. [Court House]) 1903-1937, 1911-07-20

the State and the localities Of Vir-
slnia, or S-1l per cent OF their gross
earnings Is this a fair tax. and h
n assessed in the proper manner
Inc Constitution gives the Assembly
the right TO change the present SIS
tenn after 1913. Should the Assem-
bly, avail itself of this right and If
SO, in what manner? All of us be-
heNe, OF course. in making the rail-
roads pay for the privileges they en-
JOY. and pay according TO their abil-
ltE; bat you can readily see what diff
flculUeS present themselves. In the
hrSt place, we must remember that
although we proba bly, could not main
tain our franchise tax in court. the
railroads. are at present satisfied. ANY
attempt to change the system may
bring down to the next Assembly the
greatest railroad lobby in the history
OF the Commonwealth. You who re-
member the Hobbies Of ancient days
VIII cry with the Saxon monks, from
the fury of these NorSemen, Good
Lord, deliver us. Again, rcmem Der
that there is no sure method of as
pertaining the value of railroad prop
erty for al Valorem taxation and that
the only ideal system of taxing them.
on the gross earning basis, is of
doubtful cOnstitutionality since the
decision in the Galveston railroad
case (21O u. s., 1870. Furthermore.
q
The railroads, TO be sure, argued that
the cost of their lines was $4,000
the mile when they filed their an
swerS to the 2-cent rate proceedings
and that rates should be fixed ac-
'cordingly; and they cried that 100000
was an outrageous valuation when
the Corporation Commission raised
their taxes last year. This absurd
change of front is ridiculous, for
whatever basis is fixed for one is a
proper basis for the other. Still it is
unQueStiOnably true that IL we tax
them too heavily our farmers and our
manufacturers Will pay the tax in
heavier rates. Nor is this all. We
must take a broad view and remem-
Der that new RAILROADS. are still need
ed in Virginia. We must open up
the Northern Neck and carry rail-
roads into Western Virginia. Finally,
there is the danger of a new railroad
agitation by injudicious argument
an agitation that may not only injure
legitimate business, but handicap tax
reform. SO the railroad problem pre-
sents itself thus: What is a fair tax
for this property that will stand the
test of the courts, that will not be
unjust, nor raise rates, nor create use
less agitation, but that will encourage
railroad building and yield a just rev.
enue? Nor need L pause to say that
with this is bound up that perennial
Equestion of rolling stock.
The second large problem of this
character is how TO attract capital to
Virginia and how to keep capital in
Virginia. Invested money is a coy
bird, we must remember, and tickle
in its abode, feeding only where it
fattens and fitting with it's fancy.
We must remember that the tax in
Quisitors' law of Ohio drove John d.
Rockefeller and his millions from
Cleveland and that the New York in
10 70 lnn I~fr
timated at $500,00O.0OO from New
York. We know that capital must
have some abode. and we would much
prefer it to dwell in Virginia How
can we devise, a system that will at
tract il hereto be invested in our
industries, and to find their way to
our textbooks? My own experience
has been that the richer the man the
more liable he is TO dodge his taxes;
and we certainly do not intend to
enact laws and make improvements
by which he prospers without paying;
but we want more money in Virginia
and our tax laws must attract it,
Without exceeding my authority and
speaking for the whole commission.
l think L may express the hope that
we have found. a method Of doing
this. 1t may surprise you, and YOU
may think we are not demanding
enough of new capital. but / beg YOU
in advance TO defer judgment and to
remember that half a loaf is better
than no bread-or, as we believe
that three half-loaves are better than
r whole loaf