Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1916-02-15
RAILROADS PROTEST
AGAINST TAX BURDEN
Deny That They Are Underassesscd
in Proportion to Other
Property.
QUESTION MOORES FIGURES
Electric Lines Tell OF Losses Through
Jitncy Compctition-Com to
Take Up Merchants License Tax
Isll fortnight.

In solid phalanx, lawyers represent
ing NirEinia's most important railroads
appeared before the Senate Finance
Committee last night to protest against
the increase of three -cishths of per
cent on gross transportation rccciptS
proposed in the bill offered by Senator
Addison. anh approved by the state
Auditor "r Public Accounts and other
tax authorities for the purpose Of
securing To the Commonwealth Il por-
ton OF the additional revenue that is
needed 10 avert the impending $1,000
oo0 deficit Of 1917.
With one accord they attacked the
allegation inferred from the AUDITORS
report TO the State Advisory Board on
Taxation that the railroads of Nirgi, IL.
are not bearing their full share OF the
tax burden, and in particular the state
mcnt OF Auditor Moore that, while the
reasscssmcnt of real estate in the Com
monwcalth has shown an increase in
value OF II per cent, there has not
been a corresponding increase in the
revenue for state purposes from public
service corporations.
DENiES RAILROADS OWN
ONE-EIGItrI or VALUES
.\t:orr e. i. R,.nGolph williams. rep
rcsenting the Scnboaru Air Line Com =
pany, produced tEc Auditors figures;
TO show that the railroad unpanics
arc credited with owning one eighth of
the total value of all taxable proDcrtN y.
i'll the STAT. Of Nirginia--;L PROPOSE ion
which, he said was Inherently pre-
posterous. The railroads operating in
Virginia. he said. according TO the
Auditors last report. pay approximate
~ one-tifth Of the total amount OF taxes
so..ss'ea s".Ss,, mr,,, by the S'"Se fro" all as
Delegate Reed. OF Norfolk. single
handed, defended the proposal 10 in
crease the franchise tax OF public SER
vice corporations. Mr.. Reed compared
the taNcs paid by railroads with the
taxes paid by real estate, bank stock
and other classes OF property. drawing
from the comparison the conclusion
that railroad property in Virginia is
$4,000" 200 undcrvalucd, and is paying
an average lax rquat TO . i-2 per cent
! OF its net income. rs compared with an
average tax equal 10 Il per cent OF
net income that is paid by real estate.
| ELECTRIC RAILROADS TELL.
OF .HTNEi COMPE!rITION Y
| General Attorney y -. tiuiEou, OF the
Virginia Railway and Power Company.
representing also the associated cleo
trio railway companies OF the state ut
| large, and s. Gordon Cumming. OF
| Newport News. representing The New
| port News and Old Point Comfort Elcc-
| tric Railway Company. drew a sharp
distinction bctwcc the properties they
represent and the steam railroad com :
panicS. to show that an Increase OF
the state franchise tax OF electric rail
way corporations could not be justified
even if such Il course were determined Il
upon with regard to the steam rail
roads.
The electric railway companies. they
pointed out. have oncrous burdens &c
bear in the way Of franchise obliEn-
tion3 requiring street paving. clcaninr
and sprinkiinG. municipal taxes on
gross earnings. and an unhcndinG rate
Of fare which, under no circumstances
can hr incrcascd-nil OF them con
iributing TO Il gross tax rate far in
excess Of rate paid by any steam rail
road
And on top az this" said Mr.. Guison
there has come in the pas, year IN.
competition OF the jitury hus which
takes from the electric railroads in tn,
! Etlt'T Clii'S u !tr.s' portion OF the pI!N
tra'llc that is profitable. This IL docs
without being obliged 10 take on, 4
| franchise or to bear any OF the bur.
deus | have last recitcd
JITNEY Is FAR FROM JOKE
10 RAILROAD COMPANIES
, The iitney may be a joke to som,
of you, but it ia far from hcing joke
TO the street railway companies. This
competition, undependablc, practically
! unrcgulatcd ana unrestricted. and vir-
tually untaNcd cXccpt for the nominal
auto'n ohilc liccnSI required. has COS:
! the company l rcprcsnnt MS much ms
| $500 Il day. II is ,problom TO which
! the state may wcll direct its attention.
NJ. Cumming Joined Mr.. t;uiron In
his summing ur OF the electric rail