Chap. 173.—An ACT providing for the propounding and prosecution of a claim
by and in the name of the Commonwealth of Virginia against the Federal
government for the recovery of taxes heretofore illegally assessed against
citizens and residents of Virginia and paid by them. [S B 220]

Approved March 18, 1926.

1. Be it enacted by the general assembly of Virginia, That the
governor be and he is hereby authorized and directed to propound to
and against the government of the United States of America and to
prosecute to collection, if possible, a claim by and in the name of the
Commonwealth of Virginia, for all moneys heretofore paid illegally
into the Federal treasury as direct tax upon property situated in the
Commonwealth of Virginia. .

2. The governor is hereby authorized and directed to employ
counsel and to enter into necessary contracts and agreements with such
counsel for the propounding and prosecution of such claim against
the Federal government, and to agree with counsel on the commission
to be allowed for such work, such commission to be contingent upon
the collection of said moneys from the United States and to be pay-
able out of the same, and shall not exceed ten per centum thereof.
The State shall not incur any cost or expense in the propounding or
prosecution of such claim other than such commission.

3. Counsel employed under this act shall have authority to seek
the co-operation of other States in proposing such legislation to the
congress of the United States as may be fitting and necessary to the
propounding and collection of the said claim and for the payment of
such moneys into the treasury of the Commonwealth of Virginia, and
shall have authority to bring and prosecute in the name of the State
any action in the court to carry out the purpose of this act.

4. All moneys, so collected from the government of the United
States, shall be paid into the treasury of the Commonwealth of Vir-
ginia, and shall be held by the Commonwealth of Virginia for a period
of two years in trust for the claimants of such funds.

5. Upon receipt of such funds from the United States by the treas-
urer of the Commonwealth of Virginia, it shall be his duty to give
notice to all claimants thereof by publication once each week for a
period of eight successive weeks in a newspaper or newspapers pub-
lished in or having general circulation in each county, by posting
written notices at the front door of the courthouse of such county and
in the town clerk’s office of each town herein for such period of time,
which notices shall set forth that such moneys have been collected and
shall notify all claimants to propound their claims in writing by filing
them with the treasurer of the Commonwealth of Virginia, and such
notice shall warn all claimants and persons interested in said moneys
that failure to so file their claims within a period of two years from the
date on which such moneys were paid into the treasury of the Com-
monwealth of Virginia, shall forever bar their right to such funds or
any part thereof, and that in default of the filing of such claims such
funds shall escheat to and become the absolute property of the Com-
monwealth of Virginia.

6. All claimants to such moneys shall file their claims in writing
with the treasurer of Virginia on such forms as shall be provided by
him and shall submit their proofs and evidence to a commission to be
known as the direct tax commission, which is hereby created, and shall
be composed of the governor and the executive counsel. Each claim
approved by said commission shall be certified by the commission to
the treasurer for payment to the claimant or his order. The treasurer
shall pay all claims so certified out of the funds so collected from the
government of the United States and held in trust for such purpose.
Either such claimants or the Commonwealth of Virginia through its
attorney general may appeal from the decisions of the direct tax com-
mission to any superior court of the State, and exceptions may be
taken and allowed in the superior court as in other cases therein tried.

7. At the end of a period of two years from the date on which
said moneys so collected from the United States shall be paid into the
treasury of the Commonwealth of Virginia, said funds, to the extent
to which no claims have been filed and approved against same, shall
escheat to and become the absolute property of the Commonwealth
of Virginia. Said funds, to the extent that any claims have been filed
against same, shall remain in the State treasury subject to the final
determination of such claims and all such funds not finally adjudged
to belong to the claimants thereof shall at the time escheat to and be-
come the absolute property of the Commonwealth of Virginia.

8. An emergency existing, this act shall be in force from its pas-
sage.