Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1915-04-03
JUDGE W|NGF|ELD
ISSUES STATEMENT
Member of Corporation Commits
sion Discusses Assessment of
Steam Railroads.
DIFFER AS TO CONSTITUTION
Tax Commission Took One View,
Corporation Commission An
other and Legislature a Third.

Judge j. Richard Winrncld who is
introduced by Delegate Samuc! NJ.
Page, of .tlbcinarie. ut tho recent apo-
cial session Of the Legislator and
Which was adopted. condcmninE tho
for its attitude on the assessments OF
railroad franchises in Virginia. last
night issued 81 statement on tho sub
jcct.
In this statement Judge WirEncld
acknowledges responsibility for the
Iagc resolution. His reply TO the
charge that he exhibited bad taste in
his participation i'm the action of Dele
gate Page is that tho cause justified
the means.
The Page resolution will be recalled
as scoring the Corporation Com mission
severely for having misconstrued and
misintcrprctcd the meaning of certain
sections of the Constitution Of Virginia"
sections LIS. IL aud l7o being men
toned specifically.
JUDGE WINGFIELD
ISSUES STATEMENT
Judge Wingheld said:
The matter of the assessment of
railroad property and whether the
franchise tax capitalized should be cX-
cludcd from the amount reported for
taxation has come up several times in
the Legislature since the new Consti-
tuition went into effect. II came up Il.
the extra session in the form of
joint resolution. introduced by Mr..
Willis, the Delegate from Roanoke,
asking three question, of the Corpora
tion Commission:
Question What is the value OF
the physical properties of the railroads
OF Virginia. ascertained by the
state Corporation Commission?
Question Els the amount at
which such physical properties are as
sessed for taxation by the state Cor
poration Commission less than the
value OF such properties as ascer-
tanned, as aforesaid, and II so, how
much?
Question 3-What is the method
pursued by the state Corporation Com
mission in ascertaining the amount at
which such properties are assessed for
taxation by the counties and cities?
FRANCHISE TAN CAPITALIZED
At THIRTY-FIVE CENTS
"In my response TO the said Willis
resolution, stated that the amount OF
roadbed. track and other physical
properties OF the steam railroads as
sessed for taxation was 2l.SS3.60S
Franchise tax capitalized at 50 cents.
which was not assessed for taxation
siS2.7a7.6oo.
Il further stated that from 1905 TO
1910 important railroad lines in Nir-
ginia were assessed al $4,000 per
mile for single track and $4,000 for
double track for purposes OF taxation
State and local; from 1910 on. 10000
II lie for single track and s&c0oo a
mile for double track.
I'm the opinion given out ny this
commission October -. 1910. j; is said:
How 10 ascertain the amount which
should be excluded on account ot this
franchise value is certainly difficult.
No rule that is entirely satisfactory
has ever been formulated. Two rules
have been suggested as the proper
method OF determining the value OF the
franchise. One. the capita1izing the
amount realized from IL at the State
rate OF taxation. 81 cents on the 800:
the other, capiial!zing it arSthe averag ge
rate, State and local
TAX COMMISSION ADOPTS
DIFFERENT METHOD
In the report of the Joint Commit
tee on Tax Revision. page 129, that
committee SAYS:
I'VE have prepared Il table, which
will be found elsewhere 10 show the
value of railroad properties as assessed
for taxation for 1872 To ascertain
this total we capitalized the gross re-
ceipts tax at sl.49ia which is the aver
age rate on real estate. and We added
the amount thus given TO the assessed
value of the physical property OF the
roads.
THE Corporation Commission has
always capitalized the gross receipts
franchise taX-at 81 cents. which in
1914 amounted to $lS2.I97. 500. which
was excluded from taxation Hut if
the method OF the joint Tax Commits
sion were adopted. the amount cx-
cludcd would he s43.4oo,OOo. i'm round
numbers. which. deducted from the
total OF sa0t.GSl,2oS. would have left
S2sl.2SI.20S subject 10 taxation. State
amd local. instead OF I21.SS3.G0S. above
mentioned.
0UOTES FROM RESPONSE
To WILLIS RESOLUTION
In the conclusion of my response TO
said Willis resolution. ! said:
"'Tt is to he noted that tho property
OF railroads assessed by us consists OF
real estate and tangible personal
property
"'Scction 17G Of tho Constitution
reads: The State Corporation Com
mission shall annually ascertain and
assess tho value OF The roadhcd
and other real estate. rolling stock
and all other personal property what
socvcr teXccpt its franchise and the
nontaxable share of stock issued by
other corporations)."
The word in brackets "(exccpt its
franchises. ctc.)" may meanShat it may
he capitalized and deducted from the
value of roadbcd. ctc., as asccrtained
by the commission.
"'And if capitalized. it may mean
capitalized by dividing the amount
Continued on Last Pagc.)