The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-01-02
R.,E.&P. AGREES
TOSURRENOER ITS
TAX EXEMP ton

ting il 70 use the new route.
This was made the basis of an at
TEMPT by the State to abolish the eN-
~mption. The State Corporation Com
mission, in the nrst year of 'ts existence
in 1908. assessed the road with the
statutory franchise tax of ] per cent
on it gross revenue, amounting To
about $4,000. On application 10 the
Circuit Court Of tho city Of Rich
mcnd, the railroad secured an lnJunc-
tion prohibiting the enforcement OF
collection Of this tax by the oihcih4s'
Each year since that time. the same
action has been taken-the commis-
sion assessing the tax and the circuit
Court declining to permit its collec-
ton.
state Got Judgment.
Appeal was taken by the Common
wealth to the Supreme Court, where
the case as argued about two years
ago decision was rendered in favor
Of the state for one years franchise
tax. the proposition. OF course. invoN-
wing this tax for all the years IL had
been levied. and perhaps. in certain
CONTINGENCIES. property taxes 10 the
state. cities and counties.
From this decision the railroad APP
United states. on the ground that the
state had violated the Constitution oil
the United states in passing law I'M
pairing the obligations of contract
This appeal is still pending. and would
have been argued perhaps year
hence but for the successful consum-
nation Of compromise proceedings
Uncertainty over the result OF this suI'
aided in a spirit OF Cancellation on
both sides.
The Legislature of 1910 sought to
force the railroad by prohibiting us
acceptance Of certain privileges grant
ed railroads in the operation OF through
freiNht trains on Sunday. unless l.
would surrender it's exemptions or
this. the road took no notice A Dill
giving the consent of the State TO
merger of the four railroads consul
tutiug the Richmond Washington sys-
tenn was also presented at that time
but il was fought to standstih oy
opposing lawyers before committees
Work Done at Last.
The Legislature OF last winter took
hold OF the subject again passing TWO
laws after long conferences between
oil nartiss in interest One OF these
c,eated A special commission. composed
OF the State Corporation Commission
and a fifth 10 be selected by these -FOUR
n treat on the part of the Common
wealth for a settlement of the tax
question The other provided methous
~ securing an amendment to the char-
for of anv road in which the state
owned stock. and which desired to De
rid of its special burden and TO sur
render its special privileges. The spe-
cial commission mentioned was author-
lied to represent the States interest
Certain legal requirements arc neces-
serN- prior to amendment. a two-thlrds
vote of stockholders is necessary, put
II is believed it Will be obtained.
ANY stockholders not satisfied with
tho change in the situation may make
application to the Circuit Court OF the
CITY of Richmond. and may there Sc
cure an order requiring the cohpahS
To purchase their stock at Its marker
value on the day before the anehu-
meur is secured. to be aScertalhe1
iudicially The stockholder has the
right of appeal TO the supreme Court
81 he is dissatisfied with the money
awarded him. Stock so purchased by
the company is to be treated as treas
ury stock.
Another possibility of the immediate
future is A merger Of the roads max
ing M the Richmond Washington sys-
tom In fact. il is believed tnat the
oonortunitv to do this was no small
argument with the company looking to
a settlement. Having surrendered It's
special privileges. the lslchui 'hd
Fredericksburg and Potomac may
associate itself with the other
lines-the Potomac Railroad Com
pany. nae 40 miles lonS
from OuantIcJ" Monument 10 Ouantlco
Junction the Washington southern
a1.4 miles long. from Quantico June
ton 20 the south end Of the Ions
Bridge. and the Richmond. Ftecericks-
burr and Potomac and Richmond and
Petersburg Connection Company. III
miles long. between Elba and Byrc
street stations. in Richmond. The
old road i 7s.ss miles N length from
F,lha. 20 Ouantico Monument. and IN
cludss the James River Branch. De-
tween Acca and Pier :. James RIVER
z.s4 miles long. and generally known
a. the Bolt Line.
Tho Washington-So Southern OWNS the
stock 81 the Potomac Railroad anc
owns also trackage rights over the
bridge and into the Union station IN
Washington
All this gathered into one road
would make highly ric and potent
railroad system Certain advantages
4, IS understood would accrue 20 the
railroad by reason OF having tho pr'p-
critics in one company and under one
usEcnlent.
Commis>ion's Task
The special comm issiou appointed by
the last Legislature IS composed as
follows Governor william Hodges
Mann. Judges H. T. Prenris v l-l-am J.
I,hea and T. Richard Wingneld Of 81.
state Corporation Cormissl DO. and
Martin T. Barks. - Washing on and
Ire University J. has held many
rneefirgs. ~ some % which represent
sfives % th. road were present II
was provided in tac bill that no COM
p-ornf.a should he mace lat aid noi
8urlule tac payment ~ franchise and
urnreftf rares fo fhe state for 1871
AID 1919 ard this wac thc oTiziral
uroposifi,n ~ tho railroad. Bot this
Yves ror meant 60 he taken SERIOUS .N
Tn. rssnnl.ss toner's said fhcv could uo'
think 20 o. ard ftrv asked 40 ta" hack
I'll -..fr.nH could not