Evening star., 1896-12-30
B. AND o. RELIEF FUND
Recent Decision of the Court on This Ques-
ton.
Money That Has Been Paid by Rail.
road Employees aid Its Custody
Passed Upon.

More than 10000 persons are directly,
and probably not less than five times as
many indirectly, Interested in the decision
of Chief Judge Harlan of the supreme
bench OF Baltimore city. to which brief ref
erence was made in The Star of yesterday,
under the terms of which the receivers of
the Baltimore and Ohio Railroad Company
are directed to pay into the circuit court
OF that city on or before January 20 1897
sum of money aggregating almost Sa5O.-
600. or the securities in which that amount
Is invested, to be applied to the payment
of the claims of members of the Baltimore
and Ohio relief department and also of the
relief association.
1t is altogether probable that the case
will be taken to the court of appeals of
Maryland by the receivers, and, II defeated
there, perhaps to the United States Su-
preme Court, and the final settlement of
the case be delayed for a long time hut
meanwhile there is and 1t Is likely will con-
tinue to be. vast amount of unrest In the
minds OF those employees of the company
VINO nave Tor greater or longer period
peen investing a portion of their earnings
with the department as to whether their
investments are safe.
The history Of the Relief Association
Sa Saees back almost twenty years. having
Fresioent John w. Garrett, in 1880. In
oruer 10 provide a nucleus with which TO
meet claims that might accrue before there
was any other fund in the treasury of the
association, the directors of the comnany
IN the name Of the Baltimore and Ohio
naiiroad Company, subscribed 500 OO
% Wnien sum, It was understood, was in
interest pei eeh'
Assumed by the COMPANY
The company also agreed to bear all the
EXPENSES nj
was done to make the scheme appear at.
tractive to those whom 1t was desired "a
secure as members of the association.
No attempt was. however, made to con.
ceal the fact that membership in the asso.
cation was compulsory upon every en-
pleye OF the company, and he or she was
not even given the privilege of paying the
dues. they being deducted each pay day
by the paymaster before the employe was
handed his or her stipend.
Ihe principal reason given by those In
authority for the organization of the Re
ief Association was that il was to do away
with the practice which previous to that
time was followed throughout almost ev-
cry department Of the Baltimore and Ohio
when the death of an employe occurred to
take up collection for the benefit of the
family of the deceased, in SO far as 1t was
necessary to provide funds for his inter.
ment. with. perhaps, a little over for the
widow or the surviving dependent children.
The formation of the association put a
stop to this at once, and during the past
sixteen years the association, 1t is claimed
has been the means of doing an immense
amount of good i'll this and other direc-
tions. 1t has paid out in death and sick
benefits, for which provision was likewise
made, several millions Of dollars, and il
has through its loan and building fund
feature enabled thousands Of the employees
to erect homes for themselves at places
which comprise almost every important
point along the line between Baltimore and
Chicago.
Close Relations.
1t has, however, been apparent to many
persons who have closely observed the
manner in which the affairs of the associa-
tion have been managed for long time
past that there was the closest sort of in
tims cy between the treasury department OF
the Baltimore and Ohio Railroad Company
and the treasury department of the Relief
Association.
An Illustration of this is the following
which was repeated in instances almost
without number: The widow of an engineer
killed on the road, or whose death had oc-
Cured, no matter from what cause, would
be awarded the sum of 5000, the amount
for which an engineer was insured In the
association, and would call at the office of
the association for her money. Instead of
getting the amount named in the policy,
she would most probably not receive a sim
gle cent, but would be handed two books,
had on deposit 5000 in the teasury of the
Baltimore and Ohio Railroad Company.
and the other number of blank checks
for her to use when she wanted to draw
out any money. OF course, these checks
have always been honored, on presentation
but the practice of the officers of the asso-
cation in this regard compelled hundreds of
persons to do a banking business with the
railroad company who, had the circum-
stances been different, would have placed
their deposits in other financial institutions
There have also been few isolated in
stances where the creditor has demanded
and received the full amount of her de-
posit, but these cases were few indeed, and
very far between.
For Many Years.
The contest just decided by Chief Judge
Harlan has been going on for long time,
and just before the railroad company went
into the hands of the receivers a petition
was filed by John Flaherty, a member in
which 1t was charged that the assets of
the Relief Association, which the company
held in trust, had never been invested
He asserted that it had simply been bor-
rowed by the trustee and was in danger of
being lost.
Judge Harlan coincided with this view.
and decided that the funds were received
by the railroad company under an express
trust and were to remain separate and dis
tinct from the property of the company
The amount Of the fund was fixed by the
auditors report dated August 20, 1895, at
$54S399.04, and this amount the railroad
company charged itself with in its books
in November Of the same year.
Judge Harlan held, however, that no such
sum of money was then in the hands of
the company and would not have been in
vested by it as trustee, its bank account at
the time having been overdrawn. During
the month of February, 1896, the railroad