The Richmond Virginian. (Richmond, Va.) 1910-1920, 1912-02-21
STATE ROBBED OF
;5Oo,000 YEARLY.
DECLARES RAIL-
ROADS ARE Assessed AT LESS
THAN TRUE VALUE
SUBMITS REFORM PLAN
SENATE FINANCE Committee
FAILS TO SEE WHERE HEN.
RICO MANS SCHEME Is
PRACTICABLE.

Author of half a dozen bills that
have brought railroad officials and
attorneys about his ears. Louis @.
Wendenburg, senator from Henrico
county. was defeated yesterday In
the hardest fought contest he has
taken part in yet. Representatives
Of every railroad In the State were
tee opposing the Heprico senator's
bill to reform railway property as
sessrr1ents. Wendenburg supported
his bill single handed.
Tho bill was reported unfavorably
after a three hour discussion, In
which Wendenburg declared the State
Of Virginia Is being robbed annually
Of half a million dollars taxes by
railroads. Railroad men told the
committee that the railroads of the
State pay a total taxssmounting to
20 per, cent. Of the assessed values
altogether.
The bill presents an entirely new
scheme OF assessment. II directs the
state Corporation Commission to
consider the net earnings OF railroads
as per cent. OF their capital stock
and make assessments accordingly.
Under this plan II the net earnings
Of a railroad amount to 100000
its assessment would be placed at
500. 100000.
Il have found" said Mr.. Wenden-
burg, that conditions are appalling
The railway companies Of Virginia
are robbing the State of $eoo,ooo
every year. How much they are de-
priving the counties l have no means
OF learning.
There ID difficulty in determining
the value Of railway trackage. The
Corporation Commission has taken
as basic principle certain SUN Tor
mile OF track. In this bill II II
fixed at a basis of 6 per cent. OF
the net valuation. If the road earns
a little 1t pays little tax under this
plan.
I'VE must have startin6 point.
Fixing the assessment on basis OF
earnings at per cent Is, | think.
eminently fair and the only way to
determine The 'alue of railroad prop
erty.-lt cannot he computed like real
estate '-.
Reads some Figures.
Nh Wendenburg produced figures
compiled IN the Office OF the state
Corporation Commission ano,' II. II
what figure railroads are assessed
and the relation oe.weer these iiS-
ures and III. net earnings.
The Norfoin und Western Railroad.
the speaker declared, on Dasis OF
6 per cent. should be valued ut $685.
0nO a mic. IL IS assessed at $4,000
a mile. Instead Of $4,000 property
tax, Mr. WendcEDurg said, the state
now receives. It should get SS9p,ooo.
The Ches ipak and Ono Rail
road earns { per cent on ss2.ooo, II
Ia assessed at $4,000 a mile. other
railway assessments were read.
From rairoa Is in the STATE said
Mr.. Wendenourg, the State should
receive In taxes $Ib4.00O. Ii re@''iree
actually only $4,000. Thasa roads
are depriviny the State OF s4oA.ooo
rightful tax. The railroads viii proc
ably tell you tf:at they arc paying on
higher assessments in Virsini1 now
thfn any other State. THIS Is not
truc when the tax rate II taken ihto
consideration. Mileage OF the Ches-
er,ske and Ohio Railroad In virginia
Is assessed at only $4,000. ia West
rginia 1t is given In at $ss.ooo.
THE railroads tell US In 30 many
words that they are beating US OUT
Of the property tax. but are giving
Il back in franchise taxes. But tne
constitution says we must set Two
taxes. Counties and cities get none
Of the franchise tax.
I'VE must raise assessments to get
money in the state treasury. Then
we can lower the tax rate. This Is
our sworn duty. We must make .
start in the matter OF raising assess
ments of all sorts. In Richmond NOT
2 per cent. Of the real estate earns
8 per cent. II railroads cannot I'VE
under the tax. AZ they will Doubtless
say, let them go before the state
CORPORATION Commission and get per-
mission to raise their rates.
THE Norfolk and Western railroad
Ia now earning 1S per cent on It's
assessed valuation
Railroads Object
Julian w. Coke, OF the Norfolk and
Western railroad. declared his road
was already paying 3.62 per cent. OF
its gross earnings to the State. Tho
reason, he said. property taxes SEEM
ed less iii West Virginia was be-
cause the franchise tax Was not made
d specific part OF tha taxation tys-
tenn. The Norfolk and Western was
really paying more In the State OF
Virginia than In West Virginia. i.
In recent statement issued by
the Interstate Corporation Commits
siorN said Mr.. Coke. Of thirty-six
roads shown. only fourteen We're pay
ing more in taxes than the Norfolk
and Western.
Henry w Miller, assistant TO A. r.
Andrews, first vice-president OF the
Southern railway. declared It mani
testify unfair TO tax railroads under
such system unless other corpora
tions and individuals were included.
Were the system put into. practice
throughout the State, he said, there
would be general revolution. Rail-
roads. ne said. vera the only cor
porations that could hide nothing
from the State. All their books were
open to inspection.
done more for the State Of Virginia
in the matter OF low freight rates
than the extra tax would amount to
In fifty years. He said Virginia had
been treated much moro fairly than
other Southern States.
1t was declared that railroads are
paying to the State in taxes more
In proportion to their value than
any other corporations. The state
ment was made that one-1ixth OF tho
entire property valuation Of the State
Is represented by railroads. The Cor
poration Commission. one said. can
meet the situation without special
legislation IL It thinks railroad prop
erty is assessed ut too low figure.
Railway assessments are revised every
year instead OF every five years. as
is other property.
cIJDDnCrn cYrrHYnC