The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1906-02-18
THREE RAILWAYS
MAY De MERGED

Continued from First Pagc.)
the Richmond. Fredericksburg and Poto-
mac. which will amount to about $4,000.
as well as a franchise tax of about $1,000
yearly. While the State owns about one
sixth of the stock of the road on which
1T will be obliged to pay taxes, yet 1t
will receive s. for every dollar it pays
out.
Although the bill now before the Legis-
lature will bring about these results, II Is
the contention of the Attorney General
that the Richmond, Fredericksburg and
Potomac has already abandoned it's char
ter and has been since 1903 operating
under the general railway laws OF yir-
ginia. and, therefore. should pay to the
State taxes for the years 1903. 1904 and
1906 amounting to more than 100000.
A discussion of the question is brought
out in the case OF Richmond, Fredericks-
burg and Potomac Railroad Company vs..
the Commonwealth. which is now before
the Circuit Court of this city.
The Corporation Commission in 1908 lev
led a franchise tax on the Richmond,
Fredericksburg and Potomac, taking the
grounds that the original charter of the
road, while granting freedom of tax on
all tangible property, did not grant free
dom OF a franchise tax. The case went
on appeal, to the Circuit Court.
Not Exemption of Company.
In his answer the Attorney General
says in part
s"The exemption which the General
Assembly of 1S33-'34 undertook to grant
to the Richmond. Fredericksburg and
Potomac Railroad Company by the goth
section of its charter, was as will be
seen upon Inspecting that charter. con-
RI n tn ,,rn
erty of that company. distinctly defined
In the exempting clause, and all profits
which should accrue from said property;
but that exempted property. by the exl
press terms of said twenty-fifth section
was vested not In the company, but in
the respective shareholders of the cory
pany forever In proportion to their re-
spectiye shares" so that the exemption
was given, not to the company. but to
its shareholders. not in the aggregate,
but In proportion to their respective
shares or In severalty.
i 1t was in no sense, therefore, intended
to be, nor CAN'T be fairly construed to
be, as respondent is advised an exeun
ton of the franchises of the company
which constitute taxable entity, entirely
distinct and separate from It's tangible
property or the profits derived from
such tangible property,
4 ManlleStly Tor the purpose OF getting
rid of such unjust inequality and favor.
itism as any such immunity created. and
of abrogating any possible exemption or
special privilege which any Internal I'M
proyement company or other corporation
might be entitled to, or claim, under Its
charter. the Constitutional Convention
OF 1902 embodied In tho Constitution
which 1t framed, the Following farreach-
fore chartered IN this state, which shalt
hereafter accept, or effect, any amend
ment or extension of It's charter shall he
conclusvely presumed to have thereby
surreneder every exemption from taxa
ton, and every non-repealable feature Of
it's charter and Of the amendments thore
Of and also I'LL exclusive rights Or priv
leges heretofore granted toll by the Gem
eral Assembly and not enjoyed by other.
corporations OF n similar general charac-
ter; and to have thereby agreed ito there,
after hold its charter and franchises, and
all amendments thereof under the pro-
visions and subject u all the require
moIts, forms and conditions of this Cons
sttution and of any laws passed IN pur-
slarce thepeof so far as the same may 90
applicable to such corpora ton,,s
Had Exhausted Its Power.
Respondent shows this honorable court
Il that 7the said Richmond, MISUNDERSTANDING
land Potomac Railroad Company had,