The Richmond Virginian. (Richmond, Va.) 1910-1920, 1915-04-14
PRESIDENT JOHNSON ON
RAILROAD TAXATION
That Railroads Are Not Bearing
Their Share OF Taxes.
STRUGGLING UNDER BURDEN
Declares His Company Asks Only for
Simple Observation-Disclosures Page
Resolution and Increase OF Rail
road Taxes.


President L. r.. Johnson. of the Nor
folk and Western Railroad. has issued
pamphlet vigorously assailing the
Page resolution, which was adopted
by the General Assembly. He also at
taches the increase of the tax on the
gross incomes OF the railroads. Mr..
johnson says in part
Recently certain statements have
been publicly made and circulated
through the press of the State to the
effect that the railroads are not paying
their equal proportion of taxes To
permit such reports to 60 unchallenged
would no doubt create a false impress
sion on the public mind, To prevent
this Injustice and to relieve any sus-
picion that may arise from these reck
less and unwarranted attacks, this
statement is submitted to the public
with full confidence that II will con-
vince any fairmindcd person that this
com pany Is bearing It's full proportion
Of the burden OF taxation in the Com
monwealth Of Virginia.
THE Norfolk and Western Railway
, Company is a Virginia corporation, a
citizen OF this Commonwealth, and with
the other citizens OF the state. should
bear its just proportion of the burden
the plain duty OF every good citizen.
and there has heen no statement on the
part OF this company TO evade this OBJ
legation, II simply asks for justice and
equality OF the tax laws OF the State,
equality in the enactment and admin
fstration of the tax laws of the State,
aud IL In confident that the public.
which II is endeavoring to effectually
and economically serve, win protect It
In this plea.
Discusses Tax system.
For the information of those who
may not have had their attention di-
rected 10 the subject It may be wise TO
refer to the system under which rail-
roads are taxed in Virginia. In doing
this cannot do better than adopt the
language OF the Virginia State Cor
poration- Comm issieH, ia he found in
its 1908 report. part /, at page 45. In
discussing this railroad tax system. the
commission--then composed OF Hon
! Henry G, Stuart. Hon. Beverly T. Crump
and Hon. Joseph f. willard, says.
When the late constitutional conven-
, ton in Virginia considered this ques-
ton. they found that hitherto only the
physical properties Of the railroads had
been assessed for taxation. Just as
houses and lots owned by individuals
were assessed and that no taxation
ing capacity of the railroads as bust
ness or going concerns. We are ad-
vlsed that the convention reached the
conclusion that II was fair and eduita-
BILE, both to the railroads and the State.
that the physical properties should
continue TO he assessed by some board
OF assessors. as had been heretofore
done, and that the franchise or earning
capacity OF each road should be con-
/ /. a,N,, !
yield a separate tax. We believe that
this basis of assessment Is probably
the most logical and tho easiest OF. exc
cution that has been devised In any
Of the States, The physical properties
of each road should bear some req son :
ably stable assessment. as Is the case
with the property of individuals and
private corporations. while the earn
ing capacity of the road should he
taxed In such way that IL would
share It's prosperity with the state.
and would not be at a disadvantage
In times OF adversely. With this end
I'm view, II Was provided in section 1863
Of the constitution, that all assess
menss of real and tangible personal
property should be AT IL fair market
value. TO be aseertained as prescribed
by law; and IN section tTs to lse. the
constitution provides for method OF
aSskrsiUE tfe ptFAoitdA property OF ran
roads and OF canals. and also for assess
ing and collecting Il franchise tax"
Enormou. sums Paid.
Since 1909 therefore, railroads in
Virginia have paid taxes--State and
local--on the assessment OF Its physical
properties. which in Norfolk and West
ern territory averages $3.50 on the 500
and In addition thereto franchise
tax to the State OF l per cent din
creased TO is per cent at this recent
extra session of the General Assembly
called to equalixe tax hurdensl on their
gross incomes. Under this system the
railroads paid State and local taxes in
Virginia In the year 1914 to the amount
OF S2.55o.Ss712, or this amount the
State received s1.41e,5Ia95 and the To-
oaiities s1.os0.aT$.ls, (See Senate docu-
ment No. extra session 1915. prepared
by Hon. C. Lee Moore, Auditor 81 Pub
lie Accounts of virginial
The total State revenues received
for the support of tho government for
the fiscal year ending September 80
1914. amounted to s7.2A.sosIa. hence
the railroads paid over one-fifth of the
total revenues received by the State
In 1914"
Taxation of Railroads
Continuing. Mr.. Johnson says:
The State Corporation Commission
In 1907 thoroughly Investigated this
subject of taxation of railroads, and
concluded It's opinion in the following
language report of State Corporation
Commission 1907. page 1857:
"A casual glance at the annexed ia
bles demonstrates that the Virginia
system has yielded good results. aud
that we have been receiving larger
percentage of gross earnings and n
larger sum per mile from the Virginia
railroads than any other Southern
State save Maryland. and greater than
any other state where similar COM
merciai conditions and like conditions
as TO density of population exist. Thus
IT will be seen that Virginia has been
we'll In advance of the other Southern
States in reaching railway property for
taxation"
After an Investigation OF this same
subject In 1870, the State Corporation
Commission concludes its able opinion
follows treport 1910 maya