The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-03-05
FRIENDLY SUIT FILED TO TEST
LEGALITYOFR r.. e. & p AGREEMENT

or fredericksburg, and treasurer there
OF, are all made Jointly party defend
ants.
me Injunction granted upon applica-
.ion OF Mr.. Langhornc restraints the
Richmond, fredericksburg and Potomac
railroad, William n. White. President:
norman Call. secretary, and d. X. KEEL
Iogg, treasurer, from using any of the
FUNDS OF shat company for the purpose
OIL making any payment or any part of
payment under Il certain alleged CON
tract entered into on March 3. 1918.
IN MS petition in chancery, Mr. Lang
horne sets forth that he is tho owner
OF record OF forty shares OF tho corpor.
ate STOCK OF tho railroad company, and
tnat no represents himself and other
stockholders similarly situated Re
cttipg the history of the LITIGATION IN
compel tho Richmond, Frcderickshurc
and Potomac Railroad to nav taxcs lie
recites that by final order entered NV
the circuit Court of the city OF Rich
mona In 1910 tho contention of the
s alroau company was sustained. tho
effort OF tho state and its subdivisions
TO Impose a franchise taNsAand other
forms OF taxation being held to he
wholly Illegal and void The State SUI
preme Court of Appeals, in 1911. set
ASIDE this order. and adjudRed the COM
pany liable for taxation. The company
appealed TO the Supreme Court OF tho
United States. secured a supersedeas
ana the case is still pending.
Calls Act Null md Void.
hr. Langhorne charges that the act
of the General Assembly OF March IA,
1912, creating special commission
with power to compromise this litirp-
ton is wholly null and void" and in
violation Of various sections OF the
State Constitution, specifically Sections
63. 16S and 174
At recent meeting of the stock :
holders OF tho railroad, called for the
purpose OF passing on the proposed
compromise he entered his formal pro-
test against any recognition OF the
right of the State to tax this property,
when Its charter specifically excmpts
IL from taxation. and warned the stock
holders that the contract based on such
proposed settlement was illegal, I'M
wise and against the interests OF the
owners OF the road, since the company
has SO far maintained in The courts Its
claim Of being exempt from all taxa
ton. State or local. on it's properties,
franchise or income. Failing there.
Mr.. I.anghorne, though not director
OF the road, renewed his protest at a
subsequent meeting OF the directors,
held on the same day.
The contract entered into on last
Monday between the State and The rail
road company. proposes. ne states
among other things, the payment by
tho COMPANY OIL NDOut So4V,UUO out oil
tho FUNDS ofthe company, the sole and
only advantage to the company from
this voluntary payment being the al
ieged surrender on the part OF the State
and Its subdivisions. the various coun-
ties and cities through which the road
passes. OF certain supposed rights and
claims to back taxes. penalties and in
terest.
Turned Down by Board.
The directors refused to hcod Mr..
14anghorne's protest. and on March 3
the railroad. through President vii
ham ii. White and Secretary Norman
Call. entered into tho alleged contract,
agreeing among other things to pay
to the State of Virginia SI65.546s3:
to the city of Richmond $57,53167: 70
the country OF Prince William, ss73.1e,
the county of Henrico, additional.
$1.04o.S3; to tho county OF Hanover
the two sums of Ss.O75.se and s8,soi.71:
to the town OF Ashland, ss.54716; to
the county OF Caroline tho various