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758 JOURNAL OF PROCEEDINGS [Mar. 9
As much misapprehension prevails on the subject, and as
the public mind appears to be deeply imbued with the convic-
tion, which has been forced upon it by erroneous statements,
frequently and continously made, that the in vestments of the
Stale of Maryland in the Baltimore and Ohio Railroad, and
in its Washington Branch, have been disastrous to its inter-
ests, and that the tax payers have consequently been thus
subjected to heavy burdens, it is deemed necessary and just
to present the facts.
What have been the investments of the State in the Balti-
more and Ohio Railroad ?
First. On April 1st, 1834, the State, subscribed for five
thousand shares of the stock of the Washington Branch; five
hundred thousand dollars, ($500,000,) provided a bond hav-
ing twenty-five years to run, with interest at five per cent.
was taken in payment therefor, and as a security in part for
the interest on this five hundred thousand dollars, a bonus
was to be paid for the line from the Relay House to the bor-
ders of the District of Columbia, being for the use of twenty -
seven miles of the territory of Maryland, of twenty per cent,
of the gross revenue from psssengers, between Baltimore and
Washington. The result of this investment has been namely :
A receipt of fifty thousand dollars in stock as a dividend on
10th December, 1838, and of dividends in cash of $1,625,-
250.00, also for one-fifth of gross revenue from passengers,
$3,327,919.56. A statement is appended hereto, which
shows the actual result, charging the interest paid by the
State on the five per cent, bond taken by the Baltimore and
Ohio Railroad Company for this subscription, and the receipts
of cash into the Treasury against the same, It will be noted
that this five per cent, bond for five hundred thousand dol-
lars was redeemed for $489,329.12 being $10,670.88 below
par. It will be noted that the interest account being made
at the actual amount paid by the State on the twenty-five
years bond to the date of its maturity, and since that period
at six per cent, on the capital thus invested that the actual
forfeit on this investment of five hundred thousand dollars
($500,000,) and the bonus charged for the use of twenty-seven
miles of the territory of the State to perfect the line between
Baltimore and Washington has amounted to $7,981,522.80.
Second, the subscription for three million preferred stock
which was taken by the Baltimore & Ohio Railroad Company
in sterling 5 per cent, bonds. These bonds were sold by the
Company at a loss, as compared with the price at which they
were taken from the State, of $134,356.78.
It is a subject, striking and conspicuous in the history of
the Company, that whilst the State of Maryland in all the
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