The Republican. [volume] (Oakland, Md.) 1877-current, 1878-03-02
Ihe state vs. the Baltimore and Ohio
Railroad Company.

Ihe state VS.. the Baltimore and Ohio
Railroad Company.
The Baltimore Sun of the Dist says:
In the Court of Appeals yesterday
sleeision was rendered in the Gro.s
receipts tax case of the State vs.. the
Raitimore and Ohio Railroad Com
pahy. The opinion of the court wa,
dAliveFed by Judge Robinson, Chiei
Judge Bartol and Judges Miller,
BRentand Grason concurring, Judge,
alKey Bowie and Stewart dissented.
Tile points Of decision may be sum
fnsiriz',d as follows:
n After referring to the expires,
eNHptiVn OF the shares ol capital
= sslS qi the company from the i'm
csositlQn OF tsse tax or burtheiI,
MAJ 2stUf 81 The rfgffteeniii sertIaslot
\ t& lc0mpany's charter, (uct OF lS26)
the court reatliru the decision OF
Juda Dursey, in Gill's Reports,
that Me exemption of the stock is an
exemption OF the property which is
reprcsmted by The stock. The
court say: This decision was made
in Il ciga in which the Baltimore and
Ohio R,ilroad Company was Il party,
and upon the very section Ofits char
now unJer consideration. From that
time to te present, a period OF thlr
ty years,it has been The accepted law
OF the state and upon the faith OF ii
millions Of dollars have been iuves-
ted in improperly Ol the company.
Every Consideration, therefore, uI
public p0liA and Ofprivate right d.
nlands thai The decision OF the court
then submitted shal. be deemed final
and conclusive"
2, Having thus reaffirmed the de-
ciolOn OF the court in 6Ck Gill. that
the property. and stock of the COM
pany are exempt from taxation, the
court next proceeded to consider
whether the exemption covers the
franchises Of the road. The court
says; Considering the question as
one Of first impressions, we are OF
opinion that the 18th secti IN eXemptS
the property and franchises from tax
alton. If the franchises are exempt,
1t would necessarily follow that the
gross receipts derived from the eXer
else OtItS franchises &rea also exempt
3. The court dismisses the Igges
ton that inasmuch as the company
was requirei to complete the road to
the Ohio river by 1859, and one track
Vas completed by that time, the
exemption must be limited to the
franchises necessary to operate that
one track, and TO the property owned
by the company at tn time, as "a
narrow construction, which there
is nothing to justify in the spirit or
4eitero1 the charter" "Fherefore. F."
sly thecOurt, 1--WE are of f0pini0n that
the gross receipts of the appcller's
entire road, from Baltimore to the
Ohio river, and thegro,5 receipts de.
rived from all lateral roads built bv
The appellee, and from all buildings
and works necessary and pXpedient
10 the operation of its road. are eX-
empt from the imposition of any tax
or burden" This is without refer
euce to whether such roads, huild-
iuga, &C., were built from money de.
rived from the subscription to the
company's stock, or from loans, or
from the undiatributed profits of the
company.
4. AS to what buildings and work,
are "necessary and eXpedirnt," to
the operation Of the company's road
was to be embraced in the eyrmp
tlon, the court say that this is no
"dIctlo.mry question" and it is clear
that the Legislature meant to exempt
such buildings and works as w :
reasonably Convenient and appr0pri
ate to the maintenance and operation
of the road
5. The elevators, wharves, piers
and docks of the company are, there
fore, exempt, 50 far as they are nee
e-sary for the business OF the com
pany as common carrier. So far as
they are used by the company
in the general and ordinary business
of UdrehOuSenldn they are taxable
according to valuation as real prop
erty, unless by the act of 1881 the
cOmpNny is authorized to carry on
such business. In that event only
the gross receipts are taxable under
the act of 1872.
6. 1t is hardly necessary to say the
original charter does not authorize
the appellee to build and conduct
/ hotels in the usual and ordinary
manner in which hotels are kept;
that is, for the accommodation o. the
public generally. But we are not
dealing with the charter of II mere
local railroad, but one authorizing
the construction Of a road from Bal
tim)re to the Ohio river, designed
and now used as one of the great
through routes to the West. Hotels,
or buildings for the accommodation
OF passengers over the road are, we
think, necessary to its business, and
therefore within its charter. The rec
ord shows that the Cumberland and
Niaduct Hotels were mainly design
ed and now used for lhis purpose
and in addition thereto FIR ticket and
telegraph offices and waiting rooms
for passengers. The gross receipt,
derived from these hotels are there
fore, exempt from taxation. The
Oakland and Deer PiFll Hotels, how
ever, appear to have been bulIt and
are now u,ed primarily as places oI
summer resort, ana although H. such
they may attract travel over the road,