The Richmond Virginian. (Richmond, Va.) 1910-1920, 1919-08-21
Millions to Be Provided
From Other Sources
Says Commission.
CITY WOULD
MANY THOUSANDS
Upon Passage of Meas
ure State Would Drop
Revenue From Taxes
on Franchise.

Setting forth what would be the
effect in Virginia II the Plumb
plan of railroad operation is en-
acted into law by congress. Gov
ernor Davis, in q special message
to the general assembly. yesterday
transmitted a communication re-
ceived by him from the state cor
poration commission. The COM
munication to the executive is
signed by Judge William r. Rhea.
Alexander Forward and Berkeley
u. Adams.
According to the commission
the Plumb plan would take from
the revenues of the state approx
imately $224,000 the first year.
$44s,000 the second year and
3s69.000 the third year. The
total at the end of the third year
of ten years II was estimated that
it would cost the state In taxes
s2.500.0O0 per annum, or approx
mately 25 per cent of the entire
revenues OF the treasury. II
would cost the city OF Richmond
alone the greater part OF $751;
6s9.73. These figures include.
revenues from steam railways.
revenues from telegraph and tele-
phone companies, but these lat
ter represent only "a small frac-
tional proportion OF the total.
Governor Davis message was az
follows:
August 30, 1919.
Gentlemen OF the General Assembly:
The state corporation commission
has forwarded to me Z statement OF
the revenue losses, = a. estimated By
them, the state and counties and cities
Of Virginia will suffer should = bill
smbooying what !. known = tht
Plumb pan for public ownership oi
railways and canals now psndinx q
the c9ngEess OF The Gn4tAk HI %
enacted.
submit herewith to your honorable
body . copy OF the communication ]
have received from the state corpora
ton commission on this subject.
WESrMORELAND DAVIS.
Governor.
The communication from the COM
mission to the governor reads:
IT appears from the printed bill
embOdying what u known a. the
Plumb pan for public ownership OF
railways anu canals. the states, coun-
ties and cities would be deprived I'm
mediately OF ali revenue from taxes
on the franchises ana property OF such
transportation lines. reports OF hear
ings on the bill appearing in the pres
ent state that the author of the plan
will revise the bill SO as to provide
that taxes paid on railway franchises
and property TO the several states
shall De reduced 10 per cent each year
until at the end Of ten years no taxes
shall be paid.
Should public ownership become q
fact through an act OF congress EN-.
bodying the proposed amendment, il
will be necessary for the general as.
sembly OF Virginia to provide othel
means of securing revenue for the sup.
port OF the state government and the
public free schools, to pay the Interest
on the public debt. to build roads and
to provide for pensions for veterans
OF the war between the states, and "
forth.
The taxes assessed by the stat,
corporation commission in 1918 upor
the property ana franchises OF stea,x
railways amounted to Si.234,sOI. Thu
operation Of the Plumb plan. - re
ported. would take from the revenues
Of the state q sum which. on the pres.
emit basis. would amount in the 1rs
year to $2s3.000: the second year L
x446.000; the third year to 3s69. 200
and which at the end OF ten year,
would con- the state In taxes possibly
$500, 900 per annum. or approximate
~ Is per cent Of the entire revenue.
of the treasury.
Additional revenues must also hs
provided. should the Plumb plan b
enacted, for the counties and cities Of
the state. which. with the exception OF
q few counties in which there ara nc
railways. would lose In varying
amounts and varying percentages Of
their total revenues"