18 REPORT OF THE

and the same deficiency existed on the 30th September last,
which, has since been paid.

The Baltimore & Ohio "Railroad Company has paid into the
Treasury during the last fiscal year $278,577.25 divided as
follows:

For one-fifth receipts from passengers on Wash-
ington Branch................................ $69,577.25

Dividends on Stock Wash. Branch................. 55,000.00

" " " Main Stem..................... 40,000.00

Interest on $1.000.000................................. 114,000.00

The receipts from this source have greatly diminished by the
failure of the Company to pay over the one-fifth receipts on
the Washington Branch. None of the earnings of the Road
has been paid since July, 1868.

There is now overdue from this source, one whole year to
July last, and another six months falls due on the first day
of January, 1870. I addressed a letter to Mr. Garrett, the
President, in April last, calling his attention to the matter,
to which he did not deign any reply. I learn verbally, that
they are holding it to pay an alleged claim they setup against
the State, for excess of premium paid on the sterling debt
during the years 1863 and 1864. It will be a subject for your
investigation whether this claim is just or not; but with-
holding money that clearly does not belong to the Railroad
Company, is not calculated to facilitate a settlement of the
difficulty. This one-fifth receipts belongs either to the State
for which it was collected, or to the passengers that paid it.
It might be material to the question to inquire why this
Company still continues to collect what they regard as a tax
after they have discovered that it is unconstitutional, and
have ceased to pay over? It is the lamest kind of special
pleading that Mr. Garrett (through the Finance Committee)
quotes the Nevada case as settling the question, that the
"Company has not the right to continue to pay this tax," in
the face of the fact that two installments on this account have
been paid since that decision was rendered at September,
1867, term of the Supreme Court.

It is a subject of congratulation that works of internal im-
provement are progressing in every direction; that the Bal-