The Richmond Virginian. (Richmond, Va.) 1910-1920, 1918-07-31
Tells Tax Board He Is
Right in Assessing
Corporations.
LETTER IS SHARP
GovernorH Amen
able to Law Where
People $ Money Is
Involved.

Major William III. Sands. exam
trer of records, whom the gov
ernor had called to appear before
the state tax board yesterday and
explain why he had recorded Tor
taxation many millions of dollars
Of corporation property which the
governor wished not to have
taxed, did not appcar-but he
sent a letter, the receipt of which
was Immediately followed ny an
adjournment of the board. the
governor and Auditor Moore be-
ing the only members present.
Major Sands stated that nc had
recorded the property for taxa
ton because the board had order
ed him to do so, because the
board had been advised by Its
counsel that the law required
such action. and because the only
way To safeguard the interests of
the state and the city of Rich
mond was to place the property
ON record. leaving the final in
terp-ctaticn of the law To the
courts
He added that. even II nc had
received the beiated order of
majority of the board. consist
ing of the governor and Mr..
Moore, he would still have pur-
sued the same course. He was
unwilling to assume the RESPONSE
bility of throwing away more than
two million dollars I'm taxes which
he believes due the state and city,
and he expressed pointed surprise
at the attitude of the governor, In
view OF the latter's insistence ON
economy" In appropriations by
the general assembly.
The letter, which created a pro-
found sensation, follows;
To the Honorable Westmoreland
Davis, chairman OF state tax board
Richmond, Virginia: Sir--1 have the
honor 10 acknowledge receipt OF your
of July II. 1918. the
text of which is as follows.
Commonwealth of Virginia, Of
Ace OF state board. Richmond.
July II, 1918 Mr. William II,
Sands, examiner of records. Rich
mond. Virginia; My dear sir-lt
appears that prior to June 5.
1915, you were duly directed as
examiner OF records by the state
tax board not TO report for assess
ment intangible personal prop
erty, money and income omitted
for the year 1915 belonging to
to do no part OF their business
In Virginia, and not TO make or
cause 10 be made assessment
thereof; but that in spite of said
direction and in disohedience
thereof you made. caused TO be
reported and made said assess
ments.
You are directed to appear be-
fore the state tax board at a
meeting thereof to be held in the
once OF the governor of Virginia
the thirtieth day OF July, 1918,
at the hour of IL o'clock, and
then and there you will have OPP
portunity to offer such explana-
ton OF your conduct as examiner
Of records In this matter as you
may care to offer.
II assume that you speak for a ma
tority Of the state tax board, con
eisting of yourself and the Hon. c. Lee
Moore, auditor of public accounts. =
have no idea that Judge c. B. Gar
nett has added his authority to your
demand for an explanation of my of
fciai act In assessing certain holdinl
corporations created by the laws o
Virginia, because Judge Garnett is al
able lawyer and he knows that l dix
so under the ccmpulsion of definite
law.
Rights OF Taxpayers.
'.As my official act in that regart
IL unequivocal and as / performed &
plain duty imposed upon me by {
plain statute and with the added au
thority OF your honorable board.
must conclude that the real purpos'
Of your request for an explanation Il
to secure in mater involving to tbs
taxpayers OF Virginia upwards of TIVE
millions OF dollars a statement OF fact'
which may become a part OF the per
manent records OF your board.
I'm this view 1t gives me pleasure
to give facts which will permit thu
parties In interest to form an intelli
gent conception of any issue which
may have developed between the ma
tority Of your honorable board anc
myself in regard to my official con
duct in assessing the holding corpora
tions. Prior to 1915 all domestic in
corporations were liable for taxes OF
Intangible property Among thes
were included what are known al
holding corporations. These are ere
ated to hold and administer the stock!
and securities of other corporations
and are much used by men OF grea
wealth Tor their own financial ad
vantage.
rBy act Of March 16. 1918, which
vas IN emergency measure and to b.
effec4lvo upon IT. passage. omitted
ltaxoo On lntangibfes cannot be assessed
none than three-years back. BY &C
sz.... ~ Y