The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-07-23
Railroad Now Ready to
Settle Dispute With
State.
WILL SURRENDER
ANCIENT CHARTER
Must Give Up Exemption From
Taxation Before Agreement Is
Effective-Special Commits
sion Empowered to Ar
range Payment of Enor-
nous Tax Arrearages.

Acting under a special act OF the last
LEGISLATURE the Richmond. Fredericks-
burg ana Potomac Railroad has sndi-
Gated It's desire for a complete settle.
Hent OF all the differences between
that road ana tho Commonwealth OF
Virginia II has asked that the special
commission authorized by the at be
formed and organized for tho purpose
OF treating with the railroad concern
ing compromise OF the arrearages OF
taxes held by the state to be due and
unpaid
AS r coalition precedent to suqh
settlement the Richmond Frcdericks-
burg ana Potomac must surrender its
ancient charter, issued TO IL on Feb
iuary IS, 1924. IL must then relncor-
porate under the new Contribution ana
laws ot Virginia srrreudering fits i'm
mensely valuable exemptions from
State and local TAXATION. In return.
it VIII ae freed from tho special bur-
dens Imposed on 1t by It's archaic
franchise TO do business.
Five ,Icn VIII Act.
~ the terms % the law as passed
~ inc General Assembly al It's last
Session, the Governor and th. three
members oi the State Corporation
Comm issiou. together win a nftn man.
- be selected ~ ;he affirmative vote
u ans three u those named ate
created q special commission OF tive.
wiki power 4uG authority 10 repre-
sent ace for and bind the Common
wealth. lud aN IT'S political sIbdiv.-
SONS Va negotiating ana .NecuUng "a
contract with iA- Richmond. Fred
orlckshurr ana Potomac EuurQad
Company inr c.mQ omise- settlc-
in,nt aud adjustment ~ certain mae
tors between the Commonwealth AMI
that company
TA.s law went into eject on June
H. Tne railroad company has losi nv
tAns ID seeking compromised regard
!ru the Immense amount OF money
claimed ON IL by the state. ma! de-
cla4on 81 whleh Is now pending before
tie supreme Court of ne United
siotes. !, has askei that the spec al
commission be ready 70 treat with It's
Hunting Fifth Member.
The Arst step is the selection q the
afth man. This mas hecn taken up
~ the Corporation Commission and
tre Governor. and sorno CORES ponccn-e
Is already going on with reference %
hts choice Nobody AS yet knows
who he will be- but - IS und rsio7i
TINT at leas, three PERSONS are under
consideration This important duty
only qunllncd 20 deal with the many
Intricate questions presented. bat WIN
Ia addition can give his time and ate
tsntou 10 thc!r solution.
In view Of tho anXicty OF tho rall-
road company TO get the negotiations
under way, tho appointment VIII not
he long DELAYED and the special COM
mission VIII soon be ready for bust
ness. The settlement. {. It can bo
J. r.rt1f . q U
tedious anair.
Huge Sum Is Involved.
Tho Commonwealth OF Virginia
claims that the Richmond. F!edericks-
burg and Potomac Railroad Company
owes II about quarter OF million
dollars. covering only the franchise
taxes assessed for the past ten years,
with penalties and Interest The exact
sum figuring in the litigation rs mulch
smaller az only years taxes We're
asked for IN the suit which was
brought as a test But even the quar-
ter OF million is "a small part OF what
the railroad may eventually be called
upon TO pay. unless there is a COM
promise There remains the prop
crty tax since the Constitution of 1907
became effective. and greater than all.
there arc the local taxes of the cities
and counties through which the rail-
road runs
Under its charter. the Richmond
fredericksburg and Potomac Railroad.
originally a stage line. but now oper-
at'ng one Of tho most valuable ana
profitable railroad propertles in
the world. running from Elba.
Station. in Richmond. to Aqua
creek north Of Fredericksbur is
exempt from All forms Of tax
alton. state or local This exemption
has helped it to make money for its
stockholders one OF which Is the state.
which holds large block OF the stock.
Many attempts have been made to have
this road pay taxes like all other Viz
ginia railroads. and the plan which II
scems may finally turn ont 20 nave been
successful was put in the new Con-
s,itution. providing that any railroad
which accepted an amendment to its
charter should thereby surrender any
exemption from taxation which II
might have enjoyed. The road
changed part of its route ana the State
seized the opportunity After pro-
tractei litigation the Supreme Court
OF Virginia decided in favor of the
state on the matter Of franchise taxes.
which have been assessed since the
Constitution went into effect An APP
peal was taken to the : lpreme Court
OF the United States. on the ground
that the state passed a law impair
Ing The Obligations of contract-the
original charter. This appeal is now
pending. and no decision may he ex-
pected for year or two.
Should the state finally win. tho de-
cision might be such as to permit the
levyng and collection OF arrears OF
taxes for years not only on tho iran
chisc, but on the property. both FOR
the STATE and the counties ana cities.
Possibly sl,O0o.0Oo IS involved. Natural
ly the railroad would like t. compro-
(Continued on Second PaRel