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DELEGATE GALLAGHER: Mr. Case,
I am not provided with a crystal ball, but
if I were, I would suspect that any cor-
poration which enjoys this exemption would
not like to see the barriers raised to losing
the exemption. I would think the B&O
would look kindly upon your keeping this,
but I do not think that has a great deal
to do with it.
THE CHAIRMAN: Delegate Lloyd
Taylor.
DELEGATE L. TAYLOR: Delegate Gal-
lagher, I have about two questions. I am
not trying to ask the question to embarrass
you, but I am trying to point out a few
facts.
Number one, I have been a passenger of
the B&O Railroad for the past several
years when I take a trip home to Ohio. I
realize that the B&O has cut its passenger
fares from a high rate to a more economical
rate, but do you know the exact amount of
money that the State of Maryland loses
from the fact that it has given this ex-
emption to the B&O Railroad?
THE CHAIRMAN : Delegate Gallagher.
DELEGATE GALLAGHER: No, Dele-
gate Taylor, I do not. It has been estimated
that it is millions of dollars.
THE CHAIRMAN: Delegate Taylor.
DELEGATE L. TAYLOR: Well, do you
know anything about the merger of the
B&O with the Chesapeake and Ohio? Do
you feel that it will merge in the near
future?
DELEGATE GALLAGHER: It is obli-
gated to merge.
THE CHAIRMAN: Delegate Taylor.
DELEGATE L. TAYLOR: One last
question.
Are you aware of the fact that I ap-
peared before your Committee on a pro-
posal concerning the minimum income to
individuals in the State of Maryland?
THE CHAIRMAN: Delegate Gallagher.
DELEGATE GALLAGHER: Yes.
DELEGATE L. TAYLOR: And, of
course, this subsidy that is given to the
B&O Railroad subsidizes a corporation, and
of course this is what you call a distinction
from the welfare state.
In my experience as a social worker, I
have had —
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THE CHAIRMAN: Delegate Taylor, is
this a question?
DELEGATE L. TAYLOR: Yes, it is a
question.
In my experience as a social worker, I
have had dealings with all types of people.
I have called the B&O office to verify rail-
road compensation, to verify when certain
employees of the B&O were furloughed,
and the fact they were receiving so much
unemployment compensation, and of course
I find that we have a problem here.
The problem is that you are subsidizing
a million dollar corporation, and of course
employees of the B&O may suffer.
I am wondering whether it would be
better or more wise or more justifiable to
really subsidize the people who are in need
— for instance, some of the B&O employees
who may be furloughed because of lack of
work, or may have reached retirement age.
Many times when they do reach retirement
age they have to resort to welfare assist-
ance in terms of paying hospital bills.
DELEGATE GALLAGHER: Mr. Tay-
lor, the State of Maryland regrets that
they granted this exemption, and certainly
there is no indication that the proceeds
which would otherwise be paid into taxes
have been specifically put into areas of so-
cial concern, and no indication to the con-
trary, either.
I think it is important to remember that
this was a virtual joint venture between
government and private enterprise in the
beginning when railroads were new, and no
one could tell whether or not the corpora-
tion would end up as a money-making cor-
poration or successful enterprise. It did.
However, the State of Maryland got burned
along the way, and the State of Maryland,
for all intents and purposes, is out of the
stock owning of the B&O Railroad. An ex-
emption which was originally granted to
spur initiative, partly recognizing the fact
that government was going to be a 50 per-
cent stockholder, the facts justifying those
exemptions have disappeared.
I do not think that this was early wel-
fare state by any means. I think this was
an attempt to initiate and spur along a
new undertaking.
THE CHAIRMAN: Delegate Taylor.
DELEGATE L. TAYLOR: The welfare
budget in the State of Maryland is over
$30 million, or more, and of course I saw
in the paper just yesterday that they plan
to cut the welfare budget.
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