The evening times. [volume] (Washington, D.C.) 1895-1902, 1900-05-09

The Baltimore and Ohio Railway is to
be sued by the State of Maryland for divi-
dends on the State holdings in the stock
OF the Washington Branch Of the big rail-
way system. Maryland owns ) SEQ shares Of
this s;G0:., lid for many years it received
10 per cent dividends, or $50 ,OCO, from the
company. When the receiver was appoint
ed for the Baltimore and Ohio the divi-
dends were discontinued and since that
time they have not been renewed. The
railway contends, it is alleged, that the
money formerly paid in dividends on the
Washington Branch stock has been devot-
ed TO make needed improvements. 1t is
also said that large amount of the earn
ings of the branch are held in reserve to
make the proposed expensive terminals in
this city.
The Maryland State Attorney General.
Mr. Rayner, has prepared and Will shortly
hle bill in equity against the railway
asking for AN injunction and an account
with other special relief" He acts under
the direction of joint resolution passed
by the last Legislature authorizing him
TO proceed in the courts TO collect the div
idends alleged to be due.
Attorney General Rayner said yesterday
regarding the matter:
The case involves fully So COO 600 to the
State This stock is one Of the most val
liable assets Of the State. There is fund
Of nearly a million dollars to the credit OF
the Washington branch of the Baltimore
and Chic Railroad. and besides this the
road has stopped paying dividends entirely
on the Washington branch stock and has
made no offer 10 resume them. This road
not only earned 10 per cent dividends, but
had laid away a large surplus which
amounted 10 over $S00.000 when the re-
ceivers were appointed.
The status of the case is as follows
The capital stock of the Washington
branch OF the Baltimore and Ohio Rail-
road consists OF 1880 shares. OF which
l0.2S0 shares are held by the Baltimore and
Ohio Company; $500 shares are owned
by the State of Maryland, and 720 shares
by ether holders.
by Chapter rs. Section 2. Of the Acts
of 1882. it was provided that the whole
amount which will be subscribed by the
State of Maryland. individuals, and corpOr-
atiOns to the stock Of the Baltimore and
Ohio Railroad Company to be applied TO
the construction of the said railroad from
Baltimore to the city OF Washington shall
be considered as a separate and distinct
stock forever. By Chapter $50. Section ;.
Of the Acts OF 1881. it was provided that
the sums SO furnished for the construc-
ton and equipment OF said branch should
united, form the capital upon which the
net profits derived from the said railroad
shall be apportioned. and the said net prof
its. reserying not more than l per cent
for contingencies. shall be divided semi
annually in just proportions and paid over
10 the State and the several corporations
and individuals entitled thereto
Il DO not think the Baltimore and Ohio
Railroad Company would have the right to
retain the profits under any circumstance.
but this last act is mandatory and forms
the foundation upon which the suit viii
lie. What defence the read will make
do not know. ] can only judge OF that by
the answer that was filed when Messrs
John J. Donaldson and Bernard Carter.
counsel for the executors of Martha f
Gray. deceased. filed a petition in the
United States Court asking for discovery
and an account and receiver The Bal
timore and Ohio Railroad claimed then
that the acts above cited have been re-
pealed by subsequent legislation. and that
a large sum of money had been spent in
order 10 place the roadway and tracks Of
the Washington branch in an improved
condition.
The main defence in the United States
Court was one which will not apply in
this case, because the receivers contended
that no fund had come into their hands
that enabled them to pay over the surplus
profits. and that they could not divert the
earnings Of the main stem TO the payment
of the claims of the stockholders of the
Washington Branch
This stock held by the State in the
Washington Branch road il is believed. is
now earning largely in excess Of 10 per
cent dividends. and is looked upon by finan-
ciers as being worth three times as much
as the State originally subscribed and can
be easily marketed if the court DEGREES
that the road is compelled to pay the divi-
dends'