The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1910-02-24
R., f. & P. Officials Prac-
tically Agree to That
Course at Conference
FORMAL REPORT
EXPECTED TODAY
Railroad to Surrender Certain
Tax Exemptions and Privi-
leges If Stockholders Rati-
fly Plan-Exact Terms
Not Yet Made
Public.

Assurances were given yesterday
that under certain conditions the Rich
lnond, Fredericksburg and Potomac
Railroad Company would surrender It's
present charter as obsolete, and apply
for incorporation on the same basis as
other railroads of Virginia. The road
Is to surrender certain tax exemptions
and charter privileges and be relieved
from ancient and irksofne burdens not
suitable to the conditions of modern
railroading. a report will be made
to the House OF Delegates this morn.
Ing. covering the exact terms or the
agreement
Two conferences we're held yester-
day In the Office OF Governor Mann lat
which President William II. White and
General Counsel A. Caper,on Braxton
were heard A further conference will
be held in the Governpr's Office this
morning. when members of the State
Corporation Commission. who have
been Invited. VIII be present, and a:
which a report to the General Assem-
bly, Will be formulated.
Stockholders Must Act.
While President White was careful
TO explain that such a matter would
have to be acted on by the stockhold-
ers Of the company in duly constl-
tuted meeting, yet 50 far as he and
Mr.. Eraxton had authority to speak
for the road. they said they would
strongly advise II the bill introduced
by Speaker Richard T. Byrd last Sat
urdav becomes 4 law. that the conf
pany surrender its charter and take
steps to reincorporate.
Governor Mann presided at the con-
ference YESTERDAY. having been named
as chairman BIZ the joint resolution OF
the General Assembly. which proposed
a conference with the railroad officials.
The conferees were State Senators
| Echols. Fletcher and Saunders, Speaker
| Byrd. Delegates Page. Cooke and Pow
ers. The railroad was represented by
President White, Assistant to the Pres
iden, w. D. Duke. General Counsel
| gr:,xton and Associate Counsel ". d.
| CardweIl. Second Auditor John G.
Dew was present. representing the IN
| terests of the state through the sink
ing fund which holds about se5o,co0
OF stock.
the Richmond, fredericksburg ana
i, Potomac is operating under charter
half-century old. described by Speak
er Byrd as designed for the age OF
stage coaches rather than of railroads.
White the road is exempt from all
forms of taxation, there are many re-
ouirements of burdensonle nature
which are impracticable in operation,
as. for instance. the requirement that
ali trains must stop anywhere there
are passengers to get on or Oft. The
hostility OF the Legislature to special
privilege was shown last week. when
the House tackled on to the bill per-
mitting the running OF through Sun
day freight trains. an amendment
which excepts from that right such
roads as are exempt from taxation. an
amendment aimed directly at the Rich
mond. Fredericksburg and Potomac,
the only tax exempt road.
Suit Now Pending.
The validity of that exemption has
already been attacked in the courts.
For several years the Auditor OF the
state has been filing suits In the Cir
| cult Court of the city of Richmond
| for taxes assessed on the basis OF
| other roads. A test case has been
made out and taken to the Court OF
! Appeals, where 1t has once been iullS
| argued. Judge Buchanan, OF the court
| was absent at the time, and the cour
/, took the somewhat unusual step OF
! directing new argument u
| March term, when all the judges could
he nresent. 1t is not known what cf-
feet a surrender of the charter would
have on the pending litigation, though
some legislators outside of the con-
| ference suggest that the suits may
he dropped If the company secures q
reuy charter on the basis of regular
taxation.
The state of Virginia holds in Its
sinking fund for the redemption OF
| state bonds about $550,O00 of stock OF
tho Richmond, Fredericksburg and
potomac Railroad. That fact wa:
/ strongly argued two years ago, wher
.,n ancient statute prohibiting the
naralleling of that line was repealed
and the argument is being revived
that the state should protect Its owl
/ interest and not impair it's income b!
| Increasing the burden of taxation OF
| this particular road. Members OF
the General Assembly have described
this as a case Of the private interest:
OF the State as a stocl<holder bein9
| opposed to the public interests o.
citizens and taxpayers.
Amicnble Adjustment In Sight.
No official statement was given ou
/ at the close OF the conference las
night, but members OF the body A''
authority Cor the assertion that al
amicable adjustment is In sight. aft
that the railway officials have snow
A every disposition to meet the stats
half way Formal action on the sur
render Of the charter and reincorpora'
i ton, according to President White
4 could only be taken at meeuns o.
the Stockholders called on thirty days
notice The later proceedings as te
re,ncorporatlon would be held before
|'tbe state Corporation Commission. ant
would he of a moro or less formal ma
\ turc. although they might extend ovel
several months
with a view. Of facilitating suct
nroceedtngs, Speaker Byrd introduced
Into the House last Saturday a gen
cral act to provide for the voluntar,
i surrender Of obsolete charters by, rail
road companies in which. the Stat
|ipossesses a proprietary Interest, o
holds. stock directly or indirectly, an,
the reincorporation Of such roads. u.
1.-THE state Corporation Commission.