The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-03-06
R. T. & P. BILLS
NEARING PASSAGE
House Committee Reports Sen
ate Measures Looking to
Compromise on Taxes.
JUDGE WILLIAMS OBJECTS
Finds Many Flaws-Corporation
Commissioners Approve
Proposition.

After listening for four long hours
to repetition of the biennial argu-
ments regarding the relations between
the Richmond Fredericksburg and Pc
tomac Railroad and the Commonwe
of Virginia, the House Committee on
| Roads and Internal Navigation lnet
night reported the Senate bills per-
uniting q comprt mise OF the differ
ences as to perhaps 100000 tuxcs.
| while members of the committee re-
served the right to offer amendments
| on tho floor. Il is not believed they
! will do So since at this late day thu,
would probably wreck situation
which. after twenty-five years OF ef-
| fort. Is at last apparently within the
| states grasp.
The only point still at Issue, Il
seems. is whether or not the provision
should he added that the state shall
! continue TO have member OF tn.
board of directors OF the road. It is
pointed out that this can be arranged
In the compromise and that director
| has really no important place. with
his one vote.
History of Contention.
| ~. Capcrton Braxton represented the
railroad. He said that there Is out
standing capital stock of the par
value of sl.S1I,3oo. In the hands OF
the public there is s5S6,9oo. and the
State owns S275.0o0. There are two
kinds of stock, common and guaran-
teed. both with voting power
The contentious between the road
and the State. now of many years
standing. were detailed By Mr.. Brax-
! ton. At present there IS a suit, al
ready decided by the Supreme Court %
Virginia in favor OF the Common
wealth, to the effect that the railroad
has forfeited it's right Of exemption
from taxation By accepting an amend
ment to its charter.
| This has been appealed to the
Supreme Court OF the United states.
! Should the State win there, said MIR.
! BraXton. there would still be II further
| Issue as to whether the decision APP
/ plies TO property taxes as We'll as TO
/ the franChise-whcther II cover $780,
| coo or 100000.
| In any event. he believed it TO be to
the best interest OF both parties TO
/ compromise while the matter is stil
in doubt, and so END the differences
and chickering's which have been the
Nightmares OF succeeding General AS
sembles. The bills would name the
Governor. the three members OF tho
State Corporation Commission ana a.
J NTH person to he selected by the other
| four. TO act on the part OF the State,
! their judgment as 10 the terms OF the
| SNliltiiitHl N'IbS mai Els dGEGS-
incnt is 10 cover the amount OF taxes
| to be paid the state in lieu OF all
| claims.
VIII Amend Charter.
Then the company is 10 amend its
charter by a two-third vote of it's
stockholders, giving up It's tax cXemp
tons and being relieved from its
special burdens. Minority holders OF
stock are TO he paid an agreed price
for their holdings, unless they prefer
10 remain in the company This would
he an exercise of the right OF eminent
domain on the stock OF directors to
the action of the majority.
Attorney General Samuel W. VII
liams interposed many objections to-
the bills. ana suggested sundry amend
mcnts He thought the Corporation
/ Commission hardly the body to act. as
! it had duties In connection with super
vision of railroads. The Governor has
other duties lie preferred that the
! Governor, the chairman OF the COM
I mission and the president OF the
Supreme Court name i've persons on
the commission, and that they report
TO the next meeting OF the Lcgisla-
1 turc. or at least to their appointing
rower.
| lie argued ;hat the minority stool;
| cannot b. condemned. Then lie fear
ed tho compromise might affect the
/
! to their share of the taxes. lie wanted
| the prepayment of the State taxes for
! 1911 ana 1912 made q prerequisite to
entering into negotiations, or else 10
strike il out. since il would give the
company a chance to say that this was
F, 10 be the basis OF compromise.
Replying, Mr.. Braxton said that the
rights OF political subdivisions would
not be affected. lie protested against
| any amendment; which would proba
| bly, result in killing the bills. and said
! that tile time had come for final
| settlement oil this natter
| Stu-c 0hiciuls Approve,
| Judge X. T. Prcntis and Judge j. r.
| Winsheld OF the State Corporation,
! spoke briefly, saying that they APP
| proved the bills, and that the states
! interests were safeguarded. Only they
| thought that the Commonwealth
should continue 10 have ;. director
state Treasurer q. ". Unrman gave
, hearty approval. He said that the goa
| at which the state has been aiming
| for d quarter OF Il century is in sight.
| The bills fully took care of the States
| interest, ANA should be passed with
cut question.
! He insisted that the State should
not sell It's stock in the Richmond,
fredericksburg and Potomac until
/ 1891, when the century bonds mature.
The talk Of parallelins the road was
I but II bugaboo. ne said. since IL 1, were
! accomplished the value Of the prop
erty could not he hurt, while six trunk
| lines arc pouring their business over
its tracks. No better Investment, he
| Insisted, could he found.
| so the committee reported the bills.
--------------
To Improve Carrier service.
With .!ew OF tncreus!nc the efficiency