The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-03-13
State Has No Right to Tax Mu-
nicipal Utilities That Earn
Public Revenue.
RIPARIAN RIGHTS SECURE
Big Victory for City by Decision
in Suit Affecting Belle
Isle Litigation.

The Supreme Court OF Appeals hand
ed down thirty-onc opinions yestcN lay
morning, hvo OF them in cases involv-
ing the city OF Richmond Fourteen
decisions Of lower courts were reversed
three were reversed in part. one was
dismissed for lack of jurisdiction, two
we're affirmed by divided court and
eleven were affirmed Tho city or
Richmond was successful in four or its
By affirming the decision of the Illus
tintss Court OF the city. of Richmond.
the Supreme Court defeated the at
tempt of State Au,ltor c. Lee Moore 10
tax municipality owned utilities such
as the water works, Has works and
sewerage system. In 1912 the Com
missioner OF Revenue assessed tho city
OF Richmond with state taxes on the
CITY AUDITORIUM, Water and Gas Works
and sewerage systems TO the amount of
$35.G4o.5O.
According TO the procedure prescribed
by law, the city entered Il plea In the
Hastings Court to be relieved OF an
through Attorney General Williams.
declared the city's right TO claim ek,
property was nuliiiied by the fact that
these municipal enterprises had be
come money earning. The judge OF the
Hastings Court issued an order rcller-
ing the property from taxation, and
tn. state appealed.
The Hastings Court was upheld yes
terday In AN opinion written 10y Judg {
II. II. Cardwcll. Tho court held that
the property in question was used
wholly for city Purposes. ana found
that the Gas and Water Works were
not earning a proft after interest on
the part o! tlse ciiy's debt incurred for
their benefit had been deducted from
Protects wutcr supply.
suit which promised to upset the
clty,s water supply and involve pro-
cecdinSs for an immense amount OF
damages was thrown out when the
court. in an opinion written by Judge
Harrison, upheld the judgment OF the
"a n II 10 V,ln In
the case Of the old Dominion Iron and
and Ohio Hallway Company.
The old Dominion Iron and Nail
works claimed that the railway had
ln ,Ii, its Riparian rights by the
was erected to feed the old James River
and kanawha Canal. from which the
water supply OF the city OF Richmond
plainant. diverted the normal flow OF
water past Belle Isle, on which IS
located the plant Of the old Dominion
riparian rights.
The lower court ruled that the Old
Dominion Iron and Nail Works exer-
This opinion was upheld by the Court
OF Appeals, with Judge James Keith
dissenting.
City's Power Outlined.
The city was also victorious in the
suit brought by SALISBURY. a resident
because the city failed to furnish him
with sufficient supply of water for
domestic and sanitary purposes. The
suit was thrown out in the Law and
Equity Court. In an opinion written
by Judge Whlttlc. the lower court was
upheld, and the statement made that
the adoption OF plan for supplying
the city with water involves the eXer-
else Of n delegated governmental power
which is not renewable by the courts
in the first instance
In the suit of Tabb against the city
of Richmond, the right OF the city to
impose license tax on the agents Of
SICK benefit insurance associations was
established. Tabb. district agent for
the Southern Mutual Aid Association
was tined $50 in the Hastings Court for
failure to pay the 500 license tax
imposed on insurance agents In his
appeal, Tabb claimed exemption from
the city tax because sick benefit as
sociations arc exempted by State law
from local taxation.
The Court of Appeals. in an opinion
written by Judge Keith, affirmed the
judgment Of the Ilustings Court, and
held that the city's license tax was
not taxation OF the association, but an
occupation tax on the individual who
happened TO be agent for the associa-
ton.
The case of the City OF Richmond
against Thompson's heirs, brought up
, from the Iiustings Court. was decided
against the city. 1t involved questions
of the city's rights In condemnation
proceedings.