The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-01-15
Cont end S Compromise
With R., F. & P. Was
Unconstitutional.
WRITES LETTER
TO GOVERNOR
Officials Decline to Talk
Work of Special Commission
Claimed to Be Void Because
Legislature Had No
Right to Remit
Debt.

In an official communication yes
terday 70 Governor Mann, State
Auditor c. Lee Moore raises the point
that the act under which the special
commission recently compromised the
tax dispute between the Com mon
wealth ard the Richmond. Frederlcks-
burg and Potomac Railroad Is I'M
constitutional.
II ne Is correct. the agreement re-
Gently made by which the road agreed
to nav TO the State the sum OF $685.
554 So and 10 the cities ana CouDties
through which it runs the sum of NaS'-
s22 IS will be void. Further. the
road will not be enabled 10 carry on.
it's covenant TO surrender its exenn ption
from taxation and TO secure such changes
in its charter as will put II on a parity
with all the other railroads in VIZ
gina.
The compromise. announced Janu-
ary 9 was between the special com mis-
sion representing the State and ID COM
,nittee OF the directors of the railroad
4 general meeting of the stockholders
of the road has been called for February
5. there being practically no doubt that
the agreement will then be ratified.
Attacks ConstitutionaIity.
II is understood that the Auoitor
makes the point that tho General
Assem- bly, has no power 20 compromise
a debt due the State by any specific
person. or 10 delegate such power TO "a
special commission II can only De
done. nc thinks. by general law, appli-
cable TO all. He reasons the point. 1t
is stated at some length.
Seen yesterday. Mr. Moore ADMIT
ted that ne had written TO Governor
Mann He declined. however. TO
discuss the matter in any way. refer
ring all inquiries 20 the executive
when the Governor was asked con-
corning the letter. no said he preferred
70 make no statement until he had CON
far-ed With the other members OF the
special commission.
Discussing tho matter last night. a
citizen who has come knowledge OF the
whole affair said that upon such m
complete knowledge as the reporter
was able 20 convey. nc did not think
tho argument of the Auditor would
sDplv. or that the act was unconsti-
ftItional FOX such reason True,
debt cannot be compromised by special
act for the benefit of one party. but the
amount duo the State in this instance
has not been asCcrtained. since fhc
case IL still pending IN the supreme
Court Of the United States While
Virginia hopes 10 win. there IS a posi-
tiIity il would be decided in favor of
the railroad.
Tares Not Assessed.
Besides said this individual. the
State has never even assessed property
taxes against the road, and could hardly
be said 10 DC compromising q claim
which has not only never been adjudi-
Gated but which has never even been
presented The amount TO be paid
under the agreement is more than the
total franchise taxes would have been
for all the years. since the settlement
IS on the basis Of five years franchise
and property tax. the State and local
titles sharing alike
However, the auditor evidently be-
lieves that the act contravenes the
Constitution. that no compromise can
he made with this railroad. and that
tho state should proceed with the litiga-
ton and cndeavor to collect the entire
amount.
Further conferences will probably
be held on this point, and II may go
to the courts before settlement can
be reached
The special commission which re-
presented the State in the negotiations
IL com posed Of Governor Mann. Corpor-
alton commissioners PTentis. Rhea and
Wingield, and Martin p Burks.