The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-07-16
Public Utilities and Taxation.

Some time ago State Auditor Moore raised
the question whether or not the public utilities
of a city, such gas works water works,
electric light plant and the like were lawfully
exempt from taxation. Since that time state
ment has been published in the Richmond news
papers alleging that 1t costs the city 81 cents
per thousand cubic foot to produce gas, which
Is sold to the consumer at 80 cents per thousand
That II Is, living rate of profit. surely and II
Is further stated that the aggregate profits OF
operation are approximately $4,000 year,
The Evening Journal Is now demanding on
behalf Of the public that the price Of gas TO the
consumer be lowered.
1t has long been a question in dispute whether
not a municipality has the moral right to
make profit out of the taxpayers on a utility
which belong to them and which they pay to
maintain. There two sides to the question
and something to be said on each side But we
do not believe that 1t contemplated In
law that municipal enterprise operated for
gain and which yields a large percentage Of
profit to the municipality should be free from
State taxation. The city of Richmond furnishes
gas not only to its own residents, but to the
residents of large territory beyond its Dor
ders. And II charges higher rate to the out
landers that to It's own citizens Suppose the
CITY should decide to establish a municipal ice
plant, would 1t be allowed to sell ice to Peters
burg and Ashland and TO all communities within
its reach, without paying cent OF tax to the
State? If so, It would seem that municipal
corporation may engage in any branch of in
dustry within its charter rights and drive private
enterprises out of business and still pay not
cent OF revenue to the State for the privilege OF
trading.
1t is significant 10 note in this relation that
in exemptng real estate and personal prop
erty belonging to Young Mems Christian asso-
Citations and similar institutions it is expressly
provided in the constitution that the exemption
shall apply to organizations which are mot
I conducted for profit 1t Ia not reasonable to
suppose that the trainers OF the constitution
meant be more liberal toward municipal
porations. In time. we believe that under a
fair construction of the law. municipal opera
lions conducted fer profit subject to State
taxation. The only escape. in our judgment
is for the operation to be carried on at actual
cost-Newport News Press.
Vindcation Desirable.
We note from the papers that Governor Mann
has ordered investigation OF certain charges
made against the management OF the Virginia
Industrial Home for Girls at Bon Air by two
former inmates of the home. We are not quite
sure that the governor should not dignity the
charges emanating from such source until and
unless corroborative evidence Is secured
The two girls charged that they had to work
various other charges rejecting upon the hu
name management of the institution. 1t Is
barely possible that there may be some founda-
ton for these charges. but when takes into
there because OF derelictions and that 1t s in
It's nature a refOrmatory and the further fact
that the management consists OF persons OF
good character, the improbability of such an
investigation resulting In any disclosures of
conditions demanding drastic reform must APP
pear. 1t Is well to accept with small credence
charges emanating from boys girls detained
in such institutions against their wills. Still.
lest there be any truth at all in the charges 1t
Is we'll to make a searching inquiry into the
charge OF abuses then change the management
We confident that the inquiry will result in
nothing more startling than vindication of
the management and refutation of the charges
but even this will be we'll worth while provided
it is done without too much puelieity.-Dan-
vile Bee.