The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-02-08
R., F. & P. Compromise
Held Up by Legal
Objection.
FRIENDLY SUIT
MAY BE BROUGHT
Railroad Not Willing to Pay Big
Sum Until Assured of Consti-
tutionality of Act-Means
Further Delay Until
Courts Have
Acted.

Unwilling to pay out the sum OF
$685., 900 in taxes to the state ana 10
political subdivisions while doubt ex-
lists az TO the constitutionality OF the
act under which tho compromise was
effected. stockholders of the Richmond.
Fredericksburg and Potomac Raiiroad
, have demanded a test OF the statute lh
the courts. Not until a judicial deci-
sion UNFOLDING the validity OF the law
authorizing a settlement can be had
I VIII the money be paid ana the chaTteI
changes contaminated
II thus appears that the md OF the
chapter Of tax disagreements has been
by no means reached Although the
/ stockholders Of the road voted IN meet
ing Wednesday to ratify the compro-
mise it will not go into effect for some
time to come.
Friendly suit Probable.
The procedure. it is understood, has
not vet been agreed upon. Possiply
some s,ockholder of the Richmond.
Fredericksburg and Potomac Railroad
Company will bring a friendly suit In
the Circuit Court of the city Of Rich
r1ond TO test the cOnstitutionaity or
the law and this would involve an ap-
peal TO the Supreme Court OF Appears
of Virginia. so as 10 set all doubts Al
rest Or a petition for WIFI oil III
junction may be pre- scented directly TO
fine highest court, which has original
Jurisdiction in mandamu5 and injunc-
ton cases only. In this event. quicker
action might be expected IL wouid
then take the form of an attempt TO
enjoin the officers Of the road from
CARRYING out the provisions OF Inc
agreement and paying over the money
on the ground OF an unauthorized COM
promise
At the stockholders meeting We'd
nesday. a small number of shares were
voted against the proposition agreed
upon between the directors ana the
special commission representing the
State While the minority cast the
votes OF less than l per cent OF the
shares the presence OF any opposition
Z AT all indicates at least one protesting
stockholder. who might az any time
bring an unfriendly suit and cause long
( litigation 1t is. therefore. thought
best 10 have friendly proceedings. con-
tested nominaily so as TO get both sides
OF the proposition before the court OF
! last resort.
objection by Auditor.
/ The feeling of uncertainty that has
led TO this action being determined
upon had its basis in the position re-
Gently assumed by c. Lee Moore Audi
tor of Public Accounts In letter to
the Governor soon after the terms OF
the compromise were announced the
ity of the act of the last Legislature
constituting a special commission with
power to consummate an agreement for
settlement of the States claim FOR ten
years taxes against the railroad lie
took the position that the law was IN
violation of a provision or the constr
tuition prohibiting the General Assem-
bly, from enacting any special law re
hitting releasing. postponing or di-
minishing any obligation or liability
Of any person. corporation or associa-
ton to the State or TO any political
subdivision thereof.
The Auditor further indicated that
feeling as he did. he would not receive
the sum proposed to be paid under the
terms of the agreement
Later Mr. Moore announced that ne
would withdraw his objection in this
respect IL the Attorney General as his
legal adviser. ruled that the act did
not conflict with the Constitution This
was supposed to settle the matter. and
il was thought that the action of the
stockholders was conclusive
Fear Complications
But the point having been raised.
the railroad is unwilling to pay over
such big sum until il is assured by
actual test in the courts of the Com
monwealth that the compromise VIII
be valid and that no further claim can
be made upon IL for arrears OF taxes
The situation has been further COM
piicated by the subsequent position OF
Attorney General Williams He crit
icized the law in some respects be-
fore committees of the General As
sembly last winter and had some OBJ
jections to the agreement as formu-
lated by the special commission But
he at last agreed to the compromise
since the meeting of stockholders
the Attorney-General has cast serious
doubts on the constitutioEaiity OF the
act This has strengthened the de-
{ cision TO have the law tested
The contract now being prepared by
the states commission. or. rather. be
I ing passed upno IL after preparation
BY the railroad. will be executed sub
I iect to final legal decision that the
enactment is valid. II the law Is ad-
Judged to be Unconstitutional the en-
tire work OF the commission will have
been of no avail and the suit In the
United states Supreme Court will be
carried to q conclusion. unless the Leg
/ isiature finds new way out at its seS-
sion next winter