CHAPTER 212

AN ACT to amend and re-enact § 58-584 of the Code of 1950
providing for the assessment of certain stocks and bonds
and other evidences of debt held or owned by railway and
canal companies and providing for certain exemptions there-
from so as to restore certain language of the original act
of 1928 omitted from §58-534 of the Code of 7950. 11618 7

Approved March 14, 1950

Be it enacted by the General Assembly of Virginia as follows:

1. That § 58-534 of the Code of 1950, be amended and re-
enacted so as to read:as follow:

§ 58-534.—Stocks, bonds, etc., exempt from assessment.—
In making assessments of the property described in classes (8)
and (9) of § 58-524 the State Corporation Commission shall not
assess any railway or canal company chartered by or organized
under the laws of Virginia (hereinafter sometimes called the re-
porting company) with any of the following items, viz.:

(1) Stocks, bonds, or other evidences of debt issued by (a)
the reporting company, (b) a railroad, bridge, ferry or fuel supply
company serving the reporting company exclusively, (c) a freight
or passenger station or other terminal corporation when the same
is operated by the reporting company, (d) an equipment trust
company leasing equipment to the reporting company exclusively,
(e) any steamboat or steamship company operated as a part of
or in connection with the transportation service of the reporting
company all of whose gross transportation receipts are included
in and constitute a part of the gross transportation receipts upon
which the railway company’s franchise tax is assessed or of
companies whose gross transportation receipts are included in
those reported by the reporting company for the calculation of
the franchise tax imposed by this State upon the reporting com-
pany, or (f) a company manufacturing or repairing equipment
exclusively for the owner company, at actual cost;

(2) Stocks, bonds, or other evidences of debt issued by a
railroad, refrigerator car company, bridge, ferry, freight or pass-
enger station or other terminal corporation when the same is
operated by the reporting company and another or other railway
or canal companies, or as joint carrier facilities for the reporting
company and another or other railway and canal companies,
though operated as a separate operating company;

(3) Bonds, or other evidences of debt guaranteed as to
principal and interest by the reporting company;

(4) Stocks, bonds, or other evidences of debt issued by a
nonoperating carrier corporation whose physical properties have
been conveyed to the reporting company, which carries such
stocks, bonds, or other evidences of debt on its books as a matter
of record;

(5) Stocks, bonds, or other evidences of debt of a carrier
corporation whose physical properties, or the greater part
thereof, are subject to sale at the instance of the reporting com-
pany by virtue of its holding past due obligations constituting
more than fifty-one per cent of the obligations of such debtor
carrier corporation secured by a mortgage or deed of trust on
such physical properties.

(6) If and so long, however, as the shares of stock issued
by foreign corporations held or owned by a natural person resi-
dent in Virginia are not taxed, such shares of stock held or
owned by a railway or canal company, chartered by or organ-
ized under the laws of Virginia, shall not be taxed.

2. An emergency exists and this act is in force from its
passage.

a