Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1885-09-18

way Company, the property thus ac-
quired in the Covington and Ohio rail-
road was exempted from taxation until
She net earnings Of the G. and o. Rail
road Company should reach the sum OF
10 per cent. on its capital stock.
The Virginia Central Railroad Cont
pany having complied with its contract
and completed the road to the Ohio
river, the Legislature Of West Virginia
in the year 1878 repealed so much of
the original charter as exempted the
company from taxation. In 1879, and
after taxes were assessed against the
company, the company, believing that
this action on the part Of the State OF
West Virginia was in violation OF the
Constitution Of the United States, OBJ
tained injunctions against the collection
Of these taxes. and the Circuit Court OF
Wheeling sustained the position Of the
company and made the injunctions per-
petual. The State appealed to the
Court Of Appeals Of West Virginia,
and they reversed the decision OF the
Circuit Court Of Wheeling, on the
ground that the original contract grant
ing exemption from taxation was in viO-
lation Of the Constitution Of West Viz
ginis. From this decision the railroad
company appealed to the Supreme Court
Of the United states.
In the spring Of this year the Su-
preme Court decided the case against
the company and in favor Of the State
of West Virginia, taking the position
that the original contract was A legiti-
mate one, but that the Legislature,
having repealed the clause exempting
the company from taxation prior TO the
sale and reorganization Of the company,
made the Chesapeake and Ohio Railway
Company q new corporation, and that
the exemption clause Of the original
charter having been repealed, the new
company did not take the original ex-
emption.
Whilst the company did not receg-
nize the propriety Of this decision, yet
they had to bow TO its force. The sum
adjudged against them was a large one
TO meet in the present depressed condi-
ton Of railroad business, and the com
pany desired 10 make an arrangement
with the State 10 pay the whole OF
these taxes in instslments. This the
State authorities Of West Virginia re-
fused to agree to. The company then
proposed TO pay the State the whole
amount Of the State tar less 10 per
cent. penalty, which was added 10 the
face amount Of the taxes, proposing
then TO endesvor to arrange with the
counties in such instalments as would
meet the necessities Of the counties,
and tender was made Of the amount.
This proposition was also refused by
the authorities Of the State, whereupon
the company announced its purpose to
apply 10 the counties for an extension
Of time.
The Governor Of West Virginia then
ordered the tax-bills TO be sent out 70
the various sherifis, with orders to levy
at once for the amounts. and addressed
circular letters 10 the Commonwealth
attorneys Of the various counties on the
line OF the road 10 resist any movement
on the part of the company before the
county courts for any extension Of time
TO the company. Ii being matter Of
vital importance to the company that it
should have this extension Of time. and
10 have time TO make their application
to the county courts, they obtained
temporary injunction from Judge Jack
son, Of the United States District Court
at Charleston, and in Wheeling. in
chambers, the Judge decided that these
taxes, under the laws Of West Viz
ginia. were not collectableprior TO No
vember lst, and continued his inlunc-
ton against the collection OF any part
OF them until that date.
In raising these questions before the
court the company also took the ground
that the addition Of 10 per cent. to
these taxes in case Of failure to pay by
a particular day was a violation of the
provision Of the Constitution Of West
Virginia, which declares that "all
taxes shall be equal and uniform. and
that no one class Of property shall be
taxed higher than any other class" lnas-
much as no other corporation or indi-
vidual save railroad companies have
this penalty for non-psyment attached
TO their ax-bills. the collection OF
this 10 per cent. penalty was enjoined
BY the Judge until his further order.
which will be made at his November
term. The Governor Of West Virginia
participated in the argument Of the in
junction case at Wheeling, and took the
ground that he had the right 10 give di-
rections 10 the county courts not TO
grant any extension Of time to the COM
pany in the payment Of its taxes. This
caused the Judge TO embrace this sub
ject in his opinion, and to declare
that the State authorities had nothing
whatever to do with the management
and collection Of the county taxes, and
that it Was matter entirely in the
hands Of the county courts. outof this
doubtless grows the order Of the Cover
nor, which was published in our tele-
graphic dispatches of yesterday morning.
1t seems TO be q mere " brutum full
men, and We have no idea that any con-
fict between the State and Federal
authorities will grow out Of it.