Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1883-03-26
VIRGINIA TAX QUESTIONS.
The b. and O!Compasy Insists sa Pay
ing In Coupons.

The B. and OsCompaay Inststs on Pay
ing In Coupons.
BALTIMORE, March 24.-The seizure Of
part Of the rolling stock Of the Baltimore
and Ohio Railroad Company for the non.
payment IN cash OF the taxes Of the Valley
Railroad, which is leased and operated BY
the Baltimore and Ohio, creates much talk
in railroad circles here. Yesterday Mr..
Samuel Spencer, Second Vice President Of
the Baltimore and Ohio and President OF
the Valley Railroad, gave an authoritative
statement as TO the position OF the two
companies. In the first place,
the four corporations forming the
Valley Line, from Harper's Fer.
~ to Staunton, with the exception Of
so much Of the line as in the State OF West
Virginia, are assessable for taxes in Vir.
ginia, The Baltimore and Ohio Railroad
Company, as the lessee OF these corpora.
tions, has rendered to the authorities Of
Virginia tax coupons and fractional parts
in silver in full payment OF such taxes
within the time specified by law for the
payment of taxes, which have been refused.
The attempt to collect by levy on the
property Of the road raised, in the opinion
of the Baltimore and Ohio authorities. q
constitutional question which, when De,
c;1ea by the State courts, can pe carried
,broupb ali the courts TO the Supreme
Cont of the United States. The poin'
here, they think
Differs Altogether
from the !" p;"'nt recently decided, and gre.i, .,
confidence is fe.. that the Saprems Cosr'
will maintain the inv,s. ability OF tnS con
tract. The United States Sup. Cout.,
in its late decision, did not decide thas 'ae
Legislature OF Virginia could violate this
contract with its creditors, but simply de-
cided that the Coupon.killer bill only
changed the mode Of redress which should
be sought to compel the State to comply
with its engagements. President Spencer,
OF the Valley Railroad, beld first that the
Virginia authorities could not attach the
property of the Baltimore and Ohio Rail.
road Company for the non.payment OF
taxes due from the Valley Railroad Com.
panv, and he has informed the attaching
party that the Baltimore and Ohio Com
pany will hold him personally and Off.
cia.ly responsible for all damages; and,
secondly, that the Valley Railroad Com
pany will not pay its taxes due In Virginia
v,
terpretation OF the law placed upon the
Coupon killer bill by the Virginia authori.
ties.
Mr.. John X. Cowan, counsel OF the Balti-
more and Ohio, gave his opinion rs fol.
lows:
The supreme Court
Of the United States lately decided In the
case OF Antoni against Greenhow that
Coupon killer No. /, being the act OF the
Virginia Legislature Of Jan. IL, 1882, was
valid. This act simply took away from the
coupon holders the right 10 secure q man.
damus TO compel the tax collectors TO re-
ceiye the coupons in payment OF State
taxes. No other question was decided by
the Supreme Court, but the simple one
that taking away the single remedy by
mandamus did not impair the obligation
Of The contract. Coupon.killer No. 2, being
the act OF Jan. 90. 1852, takes away all
remedies from the oupon.holder. except
the single right 10 sue the col ector after he
had paid his taxes in cash, and prohibits
the collector OF taxes from receiving tax.
receivable coupons in payment OF taxes
due the State. The railroad companies and
others have rendered TO the proper State
Cffic.rs tax receivable coupons In payment
OF tLeir tsXes. These officers have declined
10 receive them in accordance with the act
last mentioned, and thereupon the officers
proceeded TO seIze upon the prCpsrty Of the
railroad company and will attempt to sell
the same in payment Of the taxes. The
Supreme Court hss. held that the State must
rec. i've these coupons in payment OF taxes,
end that no liquidation which endeavors TO
prevent this is valid. The railroad com.
p.nies. therefore, claim that the late deci.
tion If the Supreme Court does not apply
To the present case at all. On the contra.
~, they maintain that the Supreme Court
Jerision directly sustaips the validity Of
the coupons AS ts1-payiDg instruments and
as valid tenders, and that the State officer
who seeks to take property for taxes after
a valid tender Of coupons has been made 70
him, is a tresspssser, and the courts will
prevent him from seizing such property"