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1876.] OF THE HOUSE OF DELEGATES. 757
subject to taxation ia another form—in order that the com-
parative burden may be understood—to call attention to the
fact, as learned from the Comptroller of the Treasury Depart-
ment, that the sums of tax thus far paid by that Company
into the State Treasury, have been as follows, viz: For
1872, $293.11 ; for 1873, $1,351.52; for 1874, $2,450.35.
We deem it requisite to call attention to an error in the
Message of his Excellency, the late Governor, where he states
ihat the Company has refused "to declare any dividends on
the earnings of the Washington Branch, in order to punish
the State for the prosecution of its just claims."
We ask your Honorable Boby to remember that, on De-
cember 10th, 1870, immediately after the decision of the
Superior Court of Baltimore city, declaring this "Capitation
Tax" unconstitutional, the Board of Directors of this Com-
pany reduced the fares one-fifth between Baltimore and
Washington, and between all intermediate points on the
Washington Branch. Since that date it has ceased to col-
lect that tax, or any part of it, and the traveling public,
mainly citizens of Maryland, have received the entire benefit
of the supposed exemption from this tax. All of this twen-
ty per cent, of the gross revenue as formerly collected, hav-
ing gone to the public, there is, therefore, not one dollar
thereof in the Treasury of the Company. The Company
has, however, regularly paid a semi-annual dividend of five
per cent, to the holders of the stock of the Washington
Branch. The State being the owner of $550,000 of this
stock, duly received $55,000 per year thereon. It paid its
last semi-annual dividend of the earnings of this branch on
April 17th, 1875, for the half year ended March 31st, 1875.
It did not pay any dividend for the half year ended Septem-
ber 30th, 1875. But why? The slightest examination of
the financial condition of the Washington Branch, and of
the demands of the State will show the reason.
On the 20th of May, 1875, the payment was made to the
State of Maryland, in settlement of the judgment in the
"Capitation Tax" caseof $424,229.81, and as the further
claim of the State for this tax or bonus, for its charter largely
exceeded all the resources and all the earnings of the Wash-
ington Branch Road, any attempt to pay dividends thereon,
without relief from the State's claims, would not only have
been wrong and dangerous, but would hasten the necessity to
mortgage, and probably lead to the sale of the road in order
to pay the State's claims, and thus lose to the State of Mary-
land and all its owners their whole property, in the work.
It most, therefore, be perfectly clear that no dividends could
have been declared at the last usual semi-annual period with-
out a reckless disregard of the interests of the Company.
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