836

LAWS OF MARYLAND.

to Ocean City a distance of eighty-eight (88) miles being

done in a very substantial manner, under the supervision of

capable and conscientious engineers, at a cost approximating

one million two hundred thousand dollars ($1,200,000).

AND WHEREAS, a contract was also entered into with the

Preamble.

Baltimore and Ohio Railroad Company for the sale of the

Bay Ridge Railroad, the constructing of a pier at that point

and the furnishing of a steamer at a cost approximating

one hundred and thirty-five thousand dollars ($135,000).

AND WHEREAS, to prevent this valuable property which

Preamble.

is the only peunisnla railroad leading to Baltimore from fall-

ing into the hands of a company whose interest would nat-

urally divert the trade of that section of the State from the

city of Baltimore.

AND WHEREAS, this board is the only one in the State

not having, either the aid of the city or State it is desired to

Preamble.

ask the said city to endorse nine hundred thousand dollars

($900,000) of the bonds of said company, bearing interest at

the rate of three and one-half per cent per annum (3 1/2 per

cent), said bonds to be secured by a first mortgage on the

property of said railroad company and not to exceed the sum

of nine hundred thousand dollars ($900,000).

AND WHEREAS, said endorsement will involve an actual

Preamble

liability to said city of thirty-one thousand five hundred dol-

lars ($31,500) and said railroad company can now show a

sum largely in excess of said fixed liability over and above

its operating expenses from the first year of its operation,

which will practically relieve said city from any tax on

account of said endorsement.

AND WHEREAS in consideration of said endorsement the

said city shall receive two hundred and fifty -one thousand

Preamble

dollars ($251,000) of the five hundred thousand dollars

($500,000) of the capital stock of said company, (all of

which, will be provided for in said ordinance) thereby

securing to the said city the control of said railroad and also

securing to said city the trade which otherwise would be

diverted from said city.

AND WHEREAS a consideration of said endorsement is to

Preamble.

be the acceptance of the said nine hundred thousand dol-

lars ($900,000) of bonds by the claimants and creditors of

said road for sixty-six and two-thirds (66 2/3 per cent) per

cent of said claims, said second mortgage to be limited to

five hundred thousand dollars ($500,000) and said accept-

ance shall be in full for all demands of said claimants, and

creditors of said road.