148 JOURNAL OF PROCEEDINGS [Jan. 28,

to declare a dividend of more than one and a half or two per
cent., for the last thirty years or more.

It is proper, also, to state, in reply to your order, that the
Internal Revenue Law of the United States, approved June
30th, 1864, by its 103rd section, imposes a tax upon turnpike
companies which is peculiarly onerous, because it is imposed
on their gross receipts as well as on dividends and any surplus
of profits that may remain on hand; and to enable the Com-
panies to meet this tax, the same section authorizes them to
increase their tolls so much as may be necessary for that
purpose.

In reply to that portion of the order of your Honorable Body
which enquires by what authority the President, Managers
and Company " are now erecting toll gates as close together
as they now have them erected and used," they respectfully
report that they have not, for many years, changed the loca-
tion of any of their toll gates. About twelve years ago,
they removed one of their toll gates west of Frederick city
about a mile from its original position. This was necessary
for the collection of toll from persons traveling on the road,
and who would otherwise have used it without paying; and
the road having been finished, and the Company licensed to
charge toll, they submit that it was, and is, their 'right to
have such gates as may be necessary and sufficient to collect
tolls from air persons traveling on the road.

They further report that they have not " demanded and
collected tolls from persons using the road who reside between
the gates," unless such persons passed through the gates,
when of course they paid tolls for so much of the road as
they had used. It may be proper to add that the company
has no means of collecting toll from persons who do not pass
the gates, or of knowing when or how far they travel on the
road, and therefore no attempt is made to collect toll in such
cases.

We may be permitted also here to say that the damages
sustained by the road by the freshet in October last, which,
among other thing, carried away the bridge at Ellicott's
Mills, will amount to from twelve to fifteen thousand dollars,
which not only takes away all the surplus means of the Com-
pany, but will probably impair the ability of the company
for some years to come, to make a dividend of more than one
per cent per annum.

All of which is respectfully submitted,

R. MICKLE,
President of the Baltimore and

Fredericktown Turnpike Company.
BALTIMORE, January 21st, 1867.