HARRY W. NICE, GOVERNOR. 825

and assigns, from all State taxes and charges, including con-
tributions to the cause of the construction of railroad cross-
ings, made or to be made under the authority of the State
Roads Commission, and from all county and city taxes and
charges in the nature of a tax for the years during which the
property is so used, but not exceeding four (4) years, begin-
ing January 1, 1936, under certain conditions.

WHEREAS, George Weems Williams, the Receiver of the in-
solvent Washington, Baltimore and Annapolis Electric Rail-
road Company, was compelled, on August 21, 1935, to discon-
tinue the operation of said road because of the continued fail-
ure of said road to earn even its operating expenses; and

WHEREAS, The Baltimore and Annapolis Railroad Company,
a Maryland corporation, was, in August, 1935, chartered and
organized to take over and operate the North Shore Division
of the former Washington, Baltimore and Annapolis Electric
Railroad Company, and, having acquired said North Shore
Division, has, since August 21, 1935, continued it in operation
between Baltimore and Annapolis, with no interruption in
either passenger or freight service between Baltimore and An-
napolis along said North Shore Division; and

WHEREAS, Said The Baltimore and Annapolis Railroad Com-
pany, in order to furnish the necessary and proper passenger
and freight service between Baltimore and Annapolis and
over said North Shore Division, was compelled to expend ap-
proximately $400, 000. 00 in connection with the acquisition, ex-
tension and improvement of said line of railroad; and

WHEREAS, In order to secure said sum of approximately
$400, 000. 00, it was necessary for the owners of bonds at the
par value, plus accumulated unpaid interest thereon since
January 1, 1931, of approximately $2, 000, 000. 00, said bonds
constituting a first and second lien upon that part of the rail-
road between Shipley and Annapolis, to pledge said bonds as
security therefor, and to accept preferred and common stock
of the Baltimore and Annapolis Railroad Company in ex-
change therefor, to the end that the present mortgage indebt-
edness of the said The Baltimore and Annapolis Railroad
Company should be reduced from approximately $2, 000, 000. 00
to approximately $350, 000. 00; and

WHEREAS, Notwithstanding such sacrifices and losses on the
part of said First and Second Mortgage Bondholders, and not-
withstanding also the most careful and economical operation
consistent with safety of the said The Baltimore and Annap-
olis Railroad Company, the revenues of the Railroad Company,