ALBERT C. RITCHIE, GOVERNOR. 429

CHAPTER 243.

AN ACT to add a new section to Article 81 of the Anno-
tated Code, title "Revenue and Taxes, " sub-title "Cor-
porate Taxation, " said new section to be known as Sec-
tion 1691/2, and to follow immediately after Section 169 of
said Article.

WHEREAS,, The electric railroad and street passenger rail-
way corporations of this State are required to pay taxes on
their capital stocks for the account of the holders thereof at
full State, county and municipal rates in addition to other
taxes and charges, State and local, including local gross re-
ceipts taxes; and

WHEREAS, The increased burden of taxation which would
follow the issuance of preferred stocks has deterred such cor-
porations from issuing such stocks and has resulted in the
creation in lieu thereof of disproportionate amounts of in-
debtedness so that, without a compensating gain in taxes, the
public suffers from the economic disadvantage which results
from the creation by such corporations of such disproportionate
amounts of indebtedness; and

WHEREAS, It is desirable to encourage the issuance by such
corporations of preferred stocks (in lieu of the creation of
additional indebtedness) to provide the funds required for
the extension and improvement of their facilities, for the dis-
charge of their obligations and for other proper corporate
purposes; therefore

SECTION 1. Be it enacted by the General Assembly of
Maryland, That a new section be and it is hereby added to
Article 81 of the Annotated Code, title "Revenue and Taxes, "
sub-title "Corporate Taxation, " said new section to be known
as Section 169 1/2, to follow immediately after Section 169
of said Article, and to read as follows:

169 1/2. That whenever any electric railroad or street pas-
senger railway corporation incorporated under the laws of
this State, which derives not less than sixty-five per centum
of its gross receipts (directly or through one or more other
corporations) from passenger revenue, shall hereafter issue
shares of stock preferred and limited as to dividends and as-
sets, the property acquired by such corporation with the pro-