The Richmond Virginian. (Richmond, Va.) 1910-1920, 1915-03-14
RAILROAD PROPERTY
ASSESSMENT TOO LOW
House Adopts Page Resolution Criti-
Ching Corporation Commission
On Small Valuations.
SAYS INTERPRETATION WRONG
Hopes Expressed That Commission
VIII Revise Its Construction of the
State Constitution--Tcxt of Utter
ance Expressing Delegates Views.

Railroad property In Virginia is
under assessed for purposes IF taxa
tion by the State Corporation Com.
mission III ne opinion o. tile House
of Delegates
Expressioh to this view vas ma le
in a resoluti n ad pied by an aver
wheiming majority u The House ycs-
terday mornine The resolution was
presented By AIR. Page. II Albe,naI le.
Not only is the property unassessed
according 10 the resolution. but the
State Corporation Commission has
misconstrued and misinterpreted the
meaning of the constitutional pro-
visions for the assessment of suC1
property. That property, says the
resolution, should be treated just as
is the property OF individuals,
The resolution follows:
Tho Resolution.
whereas 1t appears from the re-
Spouse of the State Corporation Com
mission to the ojint resolution Of the
General Assembly of Virginia re-
questing certain Information as to the
assessment of railroad properties in
Virginia tSenate document No. 81
that Gae said State Corporation Com
mission, prior to 1910. has assessed
the roadbet of the principal railroads
Of Virginia at $4,000 per mile for
single trace and $4,000 per mile for
double track. for the purpose of taxa
ton. State and local and IN 1910 and
subsequent years assessed single track
at $40, 900 per mile and double track
at $4,000 per mile, for purposes of
taxation, State and local. and
Whereas. it appears from the an
swer to a joint resolution in 1905
%. mo Mt
the assessment of the physical prop
critics of steam railroads for 1905 was
s65.sIs.3i4. and the franchise tax in
1906 was s372.15332. Regarding this
franchise tax as representing the
value of the business. the earning
capacity and other matters entering
INTO the subject of the franchise. az
distinguished from physical property,
we have calculated the amount which
at the general rate OF taxation. 35
cents on the 500. would yield THIS
amount of franchise tax. We find
that sl06,329,520 would xield. at a
tax rate of 35 cents on the 400. s372,-
1882 Adding this capitalized
amount to the value of the physical
property just above stated, we have
sIT2,iiT.s3+. which may he said to
from the Virginia point OF
view. the commercial value Of the rail-
road corporate interests and proper
ties In the State"
Whereas, althulgh the said State
Commission thus ascer~
tained the value Of the physical prop
critics OF the railroads In 1905 to have
been $l72.f4T.S34. they assessed for
taxation. State and local. only $65,-
s1s.Sl4. about one-third OF said ascer-
tanned value. and by reason of this
low assessment. the State, TO the ex-
tent Of IS cents on the 800. and the
localities 10 the extent of an aver
age of Sis on the 500, did suffer
loss OF revenue on *i0s,32a.520; and.
Whereas. Judge Robert r.. Prentis,
In his opinion In the matter Of assess
ment OF railway property in Virginia,
dated October i. 1910. in an argu-
narrative way ascertains that the av-
erage value of the four longest roads
in Virginia would be $s7.sS1 per mils,
and that the average of all railroads
in Virginia. including the cheapest
and shortest lines. thus ascertained.
would be S57.e47 per mile. and yet
bringing in the factor of capitaiizing
the franchise tax at IS cents per 800,
the said Corporation Commission in
1910 made the aggregate assessments
of the visible property OF railroads in
yirginia sl04.s42.474, out OF the sum
ASIcItaiHeu OF f&Ro,3oS,1ft L&luS ut-
priv:ng the State OF revenue at 35
cents on the 500. and the localities
more than three times that amount.
on $751;. 5l0,Soo. and
Whereas the Constitution. Section
IFS. provides that the State Corpo-
ration Commission shall annually as
certain and assess the value
OF the roadbed and other real estate.
rolling stock and all other personal
property whatsoever Except It's fran
chise and the non-taxable shares OF
stock issued by other corporat!ons)
In this State of each railway corpora
ton, and such property
shall be taxed for State. county. city.
town and district purposes in the
same manner as authorized by said
law, at such rates of taxation as may
be imposed by them respectively from
time to time upon the real estate and
personal property of natural persons.
Section III of the Constitution pro-.
vides: Each such railway or canal
corporation shall also pay
an annual State franchise tax equal
to 1 per cent upon the gross receipts
hereina fter specified in Section 11S for
the privilege OF exercising Its fran
chise In this State"
Section l7S OF the Constitution pro-
vides: The State Corporation Com
mission shall, after thirty days no.
tice previously given, as provided by
law. assess the value Of the property
not exempt from taxation OF the cor
poration and ascertain the amount of
the franchise tax and other State tax
chargeable AGAINST it,
Now, therefore, be it Resolved. That
in the judgment Of this House OF Del
egates, the said State Corporation
Commission has misconstrued and
misintcrpreted the meaning OF the
said three sections of the Constitution.
l76. lit and 17s. The railway COM
panles pages the State OF Virginia a
franchise tax for the privilege of OPP
Grating in this State. and in Section
ITS the words in brackets "texcept
its franchise, etc.)" simply means that
in assessing "all other personal pro-
perty whatsoever the Corporation
Commission shall not assess the fran
chise, because that 10 to be paid for
by the franchise tax on gross receipts.