The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-11-11
STREET RAILWAY
RES|STS WRIT TAX
Judge Scott Grants Mandamus
Requiring Recordation of
Mortgage.
STATE WILL TAKE AN APPEAL
Original Paper Filed Previously
on Which Entire Amount
Was Paid.

In the mandamus proceedings of the
Virginia Railway and Power Company
against Charles o. sSavillc, clerk of the
Chancey Court of the city of Rich
mond, pending In the City Circuit
Court. Judge Scott entered an order
yesterday granting the mandamus, d.
recttnE the clerk to record n supple
mentary indenture in relation to IA
mortgage without second collection of
state writ tax. Assistant Attorney
General II, b. LAWS appeared for the
Commonwealth and gave notice of
appeal.
The case is regarded as a test In
which the state officers desire to set
tie an important point of law in regard
10 collection of State taxes. If the de-
cision OF Judge Scott is upheld. 1t
means the loss to the State of n large
amount of revenue from the wri. tax
collected in every court of record in
Virginia OH the filing OF similar papers
Recorded Conceal Mortgage.
In the case at issue il appears that
when the street railway and electric
properties were reorganized and taken
from the bands OF receivers several
years ago. a general mortgage of SIS.
100000 was authorized to cover bond
issue for that amount. tho mortgage
being given to the Equitable Trust
100000 of tho bonds authorized were
issued at that time. Now the company
plans rebuilding portions of its lines
and the erection of an additional power
station. OUTLAWS which Will require the
issuance of another million or more
of the bonds already authorized.
When the original issue was author
lied as part of the reorganization
plan, 1t was made matter of record
n r1n of
Court of this city. the State writ tax
being one-tenth Of 1 per cent. on S15,-
100000. the face of the mortgage. or
$4,000. In financing the now issue
the company presented for record II
supplementary indenturc or agreement,
listing for additional securing of the
bonds certain property not listed un-
der the original mortgage.
Claimed Additional Tax.
The Commonwealth held that this
paper was in effect a new mortgage.
and claimed writ tax of $4,000 for
recording same. To test this ruling
the street railway company applied
to Judge Scott for a mandamus COM
pelling the clerk to place the paper on
record. which, after argument by at
torneys for the company and by the
Assistant Attorney General for the
state. was granted. The State moved
to set aside the order. which was over
ruled and exceptions were noted and
leave given to file bills oil exception.
Counsel for the State announced tho
intention OF applying for a writ Of
error. and the order was suspended
for sixty days under bond in the sum
OF $1,000.
a somewhat similar case from Fred
erick county is pending in the same
court. except that in that case Clerk
Gold recorded the paper without re-
auirinC payment OF the TAM. which the
State is now attempting to recover.
Another case involving partly the same
points is that OF the Pocahontas Con-
solida ted Collieries Company, submit
ted Wednesday in the Supreme Court.
The Attorney Generals Office claims
that under the order of the court a
loopnole is left for avoiding taxation.
as IL might prove possible for a party
to file an original mortgage for NOM
inal sum. paying only the nominal
taxes imposed and then by supplement
tary papers not subject to taxation,
Increase the mortgage to its true
amount