Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1916-07-20
.HUST|NCs COURT RULING
WOULD CAUSE CITY LOSS
Richardson Holds Merchants Capital
Cannot BE Taxed Mt More
Than 80 Cents.
CITY INSISTS on $40 RA1E
VIII Appeal to Supreme Court From
Decision i'm Drewry- Hughes Case,
Which Threatens to Cut Down
Revenues St5O,OOO Annually.

Because il is the fret case OF it's
kind widespread interest attaches to
the decision OF Judge D. C. Richardson
in the Hastings Court that tho CITY
of Richmond can tax merchants only
SO cents on each 800 OF capital instead
of $40. If this ruling is sustained by
the State Supreme Court Of Appeals II
Will affect every city and county in
the state. IT would mean an annual
loss estimated a $4,000 to Richmond
alone.
The case involved is that of the
city against Drewry- Hughes & Co. and
the courts formal order. it is expect
ed. will he entered to-day
city Attorney Pollard and Hill Mon
taSuc and George Bryan, counsel for
prewry-llu2hcs & Co. have been mott
fled by Judge Richardson of his de-
cision, which, in substance. is as fol-
lows:
That there should he no reduction in
the assessment made by the Commits
sioncr OF Revenue of the capital en-
ploycd in business by Drcwry- Hughes
& Co. during 1915.
That the city OF Richmond is limited
by law to the imposition of taxes on
such capital of Drewry Hughes & Co.
the $40 or the assessed valuation
thereof.
ISSUE rs CIEAR-CuT.
believes RICHARDS0N
City Attorney Pollard was emphatic
in stating that the city will note an
appeal just AS soon as the court en-
tiers its decision.
G. Is. Garnctt. executive assistant OF
the state Tax Board said last night
that Judge Richardson's ruling was OF
the utmost Importance While the
Cfat. iS in v.iS oil il
Garnott. the outcome of this case Is
OF prime Importance to localities. for.
Whatever the Supreme Court may hold
in this instance will apply to them"
Judge Richardson reached his con-
clusion under that section Of the state
tax laws which provides that a city
or county Is limited in the imposition
OF tax on capital to n ratio not to
exceed 20 cents on the assessed valu
alton.
Tho contention OF the city. on the
other hand is that Judge Richard
sons opinion is contrary to tho fol-
lowing language Of the tax law: That
such merchant shall not be exempt
from tho payment Of county. district
and road levies on the net amount Of
capital rs defined by law, on hand on
tho first day Of February OF each year.
and may be required to nay the usual
city. county, district and road or 9TH
or levicS thereon, Notwithstanding this
act"
Discussing his decision yesterday.
Judge Richardson said that the issue
appeared cic8r-cut. but that he would
await with much interest the decision
which will he handed down by the
Court OF Appeals.
COMMITTEE: on FINANCE
DISTURBED OVER RULING
II Judge Richardson is sustained II
Viii mean that the revenues OF cities
and counties from this class OF prop
cr,y Will he materially cut down. Rich
mouds usual tax rate on merchants
capital has been $40. for each 500. IT
~ estimated that if tho courts allow
only n tax Of 30 cents for each 500
Of merchants capital II will mean an
annual loss OF revenue to the city
treasury OF 100000.
Tho capital OF Drewry-liuGhcs & Co.
was assessed by Commissioner of Rev.
emu" Trcsnor at 100000. If Judge
Richardson Is upheld In his ruling,
tho city viii he able to collect only
$500, while If the rate OF Si.io' Is APP
piled. the city viii receive $500.
The situation has given grave con-
corn TO members of the Council Com
nittcc on Finance, and they have prom
inoh their cooperation and support TO
Ciiy Attorney Pollard In fighting
agann, any reduction which would
N Tho least cut down the city's in