The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-01-02
Long Fight Ends With
Road Put on Basis
With Others.
PAYS LARGE SUM
IN BACK Ia Els
State Gets Six Years Franchise
Levy, and With Cities and
Counties, Will Receive Two
Years Property Tax. <
Merger of System
Probable.

Announcement was made Yesterday
that the final proposition of the State
for compromise Of the tax claims OF
the Commonwealth against the Rich +
mond. Fredericksburg and Potomac
Railroad Company has been approved
by the board OF directors, and that II
Will be submitted to a meeting Of
the stockholders. to be held on Feb
ruary at the general Offices in the
First National Bank Building. 1t is
certain that the stockholders will
ratify the action OF the directors, since
far more than a majority OF the stock
is represented on the board by direc-
tors for the trunk lines which control
the company. and, in addition, the
states interest will be voted for the
compromise.
As a result OF the settlement, the
state will receive the sum of $685.
1858, OF which s1f2.1OS.s0 Is fran.
chise tax. and s53.43o.2s is property
tax. Richmond will receive $5759lS7.
In addition. all the cities and couu-
ties through which the road runs viii
receive amounts equal to the property
taxes for one year.
VIII Surrender Exemptions.
More important than all, the rail-
read agrees to surrender forever ali
its exemptions from taxation. which
u mas enjoyed for nearly eighty years
and agrees further to give up every
nonrepealable feature OF its charter
and all exclusive rights and privileges
granted to it by the General Assembly,
and not enjoyed 10y similar corpora
tons 1t pledges itseh to secure from
the tate Cooperation Commission such
amendments to its charter as will
make it subject to all the requirements
n 20 u
laws in pursuance thereof. in the same
manner as these requirements apply to
steam railroad companies operating I'm
Virginia
Settlement OF this question ends a
CONTROVERSY OF many years standing.
causing fights at every session of the
Legislature, endless criticisms of the
railroad. attempts to punish IL and
force 1T into compliance with the wishes
OF the General Assembly regarding its
taxation and the surrender OF the fea-
lures or Its charter giving il an adj
vantage over similar concerns.
Privileges and Burdens.
Chartered on February %, 1854. the
Richmond, Fredericksburg and Poto-
mac Railroad was from the beginning
exempt from all forms of taxation.
franchise or property. State or local.
Railroading was brand new in those
days. and il seems the original in
corporators were in doubt as to whesh-
er or not il would be q success. In
this event. a stasecoach line was 10
be put in operation. II is provided
in the charter. for instance, that a
train must be stopped at any point
along the line to receive or discharge
passenger. on demand. Naturally.
such privilege could not be granted
by a modern road. but the Richmond,
FREDERICKSBURG and Potomac sought to
attain substantial compliance by es-
tablishing stations at an average of
little more than a mile apart, to b.
used as signal stops for purely local
trains. Threats have frequently been
made 70 enforce this provision II the
railroad did not submit TO taxation.
As railroadiug grew. and as the vast
stream OF commerce between North
and South poured over this road, it
increased in Importance. At Ali times
it has been kept up 10 the standard
and has been equal to the demands
! OF the community. so that now Il IS
one Of the most efficient. successful.
profitable and important pieces OF rail-
road line in the world The road runs
between EIbs station. in Richmond.
I and Quantico Monument in Prince VIII
. liam County. The Washington south
ern. which has always been taxed.
carries the line 10 the south end OF
the Potomac Bridge.
state u Owner of stock
The Commonwealth has for many
years been owner Of a large block OF
stock in the Richmond Fredericksburg
and Potomac IL has member os th>
board OF directors. This stock In re-
cent years has been very profitable.
paying a substantial amount into the
treasury. which. by act OF Legislature.
Is made applicable 20 the sinking fund.
and IS used for reduction OF the state
debt.
The demand that the road be taxed
as other railroads are. grew from year
20 year. The localities through whien
q runs felt that they were being &C.
prived 81 a Just source Of revenue. and
the resulting discomfort mas presented
a very I've topic fer the consideration
of lawmakers.
six trunk lines nov own a majority
% The stock % the Richmond. Pred
cricksbure and Potomac. and control
ifs policies This ownership has been
valuable in adding TO the facilities az
forded the public. since each raiiroea
sought the Improvement % Ste own
trafic possibilities
T.~ki~d fs Constitution
The Constitutional Convention q tn
years ago soozht 20 deal vitr The
vexed question. ~ provided that WIEN
ever any railroad exempt from taxssioa
accepted from tho General Assembly
an amendment to It's charter. ~ should
surrender ny that act ssch exemption
and every nonrcpeelabie feature % -
articles % incorporation II 80 hap
pcncd that a. the time The road want
ed 70 xtrsszhten ~ lac - - =