The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-01-13
Supreme Court Decides
Against R., f, & P.
Railroad.
HAS FORFEITED
ITS EXEM PTIONS
Though in Business for Eighty
Years, Road Has Paid No Tax,
Harvest Results for State,
City and Countics-Ap-
peal to Federal
Court.

Holding that the Richmond. Freter-
!cksburs ana Potomac Railroad ma.
surrendered all its exemption from tax
alton by acceptipg amendments to us
rhartcr, the Supreme Cour, Of Appeals
pi virginia yesterday handed down a
decision which viii result. unless re-
Nersed. In putting many thousands Of
collars into the Golfers OF the Com
monwealth. While the decision was on
the question Of franchise taxation
only. the effect will almost unQucs-
tipnhbly be "a successful effort on the
part OF the State and OF the cities and
counties through which the road runs.
70 assess and collect taxes on the Wis
'ble property OF the company
Al that stands in the way OF rcaliaa-
non OF these hopes, for which Virginia
has contsntisd 80 long ana go earnest
y. is tho possibility of adverse action
ON the part Of the Supreme Court OF
tho United States. President William
III White, Of the road. said last night
that an appeal will certainly be taken
The entrance 10 the Federal court VIII
be based on the section OF the Constf-
tuition OF the United States upon which
Judge X Carter Scott. in The. civ cir
cult Court. has based his previous de-
cison In favor OF the railroad. ANA
which prohibits any stare from bass
Ing y law impairiag the obligations OF
contract.
stnte Gets Big sum.
10 the state there win accrue at
once between sl50.000 ana 100000 tho
accumulation OF franchise taxes an
nually assessed by the State Corpora
ton Commission since the ncw consti-
tuition went into effect Each year the
railroad has secured an Injunction I'm
the Circuit Court Of the city OF Rich
mond preventing The collection OF THIS
tax. the case decided yesterday being
tngt I'm tI.
1907.
In addition. the state will receive
annually hereafter abou, $4,000. this
being ! per cent on tho gross earn.
ines OF the company This sur Is cX
pected 70 grow constantly as The ycars
go oy' In view of the immense import.
ehce ana increasing earning power OF
one Of the mos, important trunk lines
In the United States
VIII Get Property Tax
Again, the property taxes are 10 he
considered. Hereafter ach county and
city, as well AS Inc Stale, will assess
and collect from the road. barring
adverse action by The United states
supreme Court. a tax on the right of
way. track. stations and All other Wis.
iole property Of the corporations. The
valuations are made by tho state Cor
poration Commission. that body's ne-
ures being taken by the local com
nes'des. that all the rolling stock Of
the road Will be assessed Iii Richmond.
ana that this city viii reap rich
harvest In taxes as result OF the de
cision.
me counties OF Henrico, Hanover,
caroline. Spotsylvania and Stafford
ana the city OF Frederick sburc viii
benefit 10 the extent il is estimated on
the basis OF the valuations on other
lines, OF about S2l,00u. while the state
VIII get approximately $4,000 as a
property tax making a total TO Vir-
Einia's treasury alone, with the fran
chise taN OF about $4,000
Has Old Charter
The Richmond. Frederick spurg and
1'otomac Railroad stands unique among
inc lines OF the world. in that il has
never paid taxes for the support OF
the government from which IL derives
us powers and privileges, and from
which II gains protection. II was char
Tered by act OF the General Assembly
of Virginia on February -. 1884. as
turnpike road with the provision
mat II should pay no taxes whatever
IN return. II has special burdens 10
the public one of which Is that il shall
.of 90 cents stop It's trains anywhere
10 take on or let Oft any passenger
Many LcEislatur have tackled the
ROAD and the problems which il has
presented There has naturally been
more or less antagonism and time ar
ter time there have been efforts to
get the company TO place itself on the
basis with the other railroads OF the
state. Such an attempt was made last
winter when q bill was introduced
giving the consent of the Common
wealth. which is large minority
stockholdcr, to the merger of the
Tour lines which constitute the Rich
mond Wash ington system. from Byrd
street Station, Richmond. to the south
end Of the Potomac Bridge and 10 the
reincorporation OF the road as n mod
crn company. No action was taken
Work Of Constitution.
Thc Trainers of the Constitution of
1o02 seem 10 have done the work In
Section las OF that instrument il is
provided that every corporation here
tofore chartered in this state which
Email hereafter accept, or effect any
amendment or extension of it's charter.
shnl be conclusivcly presumed 10 have
thercby surrendered every exemption
from taxation. ana every non-Iepeal-
able feature Of it's charter and of the
amendments thereof and also all cx-
elusive rights or privileges heretofore
granted to IL by thc~Gencral Assembly.
and not enjoyed by other corporations
of q similar general character"
The. same Constitution also provides
that every railroad company shall pay
TO the state annually | per cent OF
Its gross receipts. Under this section
the State Corporation Commission pro-
ceeded to assess the RICHMOND, Fred
erickshurE and Potomac! With franchise
tax. Each year the road regularly
went into the Circuit Court of the
city of Richmond and secured an in
junction preventing the collection Of
this tax. Judge Il. Carter Scott based
his judgment on the provision OF tho
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