The Republican. [volume] (Oakland, Md.) 1877-current, 1906-02-08


Railroad Company at this time.
Although the railroad company
had paid the tax of I ? of I per
cent. as agreed to in the act of
1873, and had paid dividends on
the stock up to 1896, it has not
since 1896 paid any dividends at
all, but hes kept in hand all sur
plus over expenses since that time,
for the purpose of making certain
Improvements in Washington city
known as the terminal improve
meut.
Large amounts of money earn
ed by the Washington Branch of
the Baltimrre and Ohio have been
set aside to be used in betterments
insconnection with the terminals.
This amount, as given by the
statement from the Baltimore and
Ohio Railroad Company, is ST.
275,673. In addition to this
amount the Baltimore and Ohio
has either paid to the terminal
company or become responsible to
1t in the sum of S7.832,363. Of
this amount S6,459, IoI is paid for
the terminal proper, while 81, 49,
262 is paid for freight yards in
connection with the same, but
strictly speaking, not part of the
same. No portion of the the
amount set aside from the income
of the Washington Branch is used
for the terminal proper, but is
used as follows; Coach yards,
81, S44,3S4; coal yard. S43I, 289;
all of which, it is claimed by the
Baltimore and Ohio Railroad Com
pany, are betterments strictly for
the use of the Washington Branch
and not for the use of the Balti-
more and Ohio proper.
"There has been issued by the
Terminal Company S, 1000, 900
bonds to the Pennsylvania Rail-
road Company and to the Balti-
more and Ohio Railroad Company
the same amount. No portion of
that received by the Baltimore and
Ohio Railroad Company has been
set apart for the special use and
benefit Of the Washington Branch,
as the Baltimore and Ohio claims
that the Washington Branch has
not contributed anything at all to
the terminal proper, but only for
those betterments which will be
strictly its own and for its own use
and therefore not entitled to any
portion of the bond held by the
Baltimore and Ohio Railroad Com
pany.
whether or not the view taken
by the Baltimore and Ohio Rail
road is fair and equitable one
cannot be determined until all the
matters and facts pertaining to the
same have been fully heard and
passed upon and whether or not
the proportion of the earnings of
the Baltimore and Ohio Railroad
Company are set apart as the prop
er earnings of the Washington
Branch are fair and just we are I'M
able to determine at this time, be-
cause this cannot be ascertained
except after full investigation by
expert accountants who will be
capable of passing upon the same
after full examination Of all books
and accounts Of the Baltimore and
Ohio Railroad Company.
1T would seem that inasmuCh
as the Washington Branch owned
the terminals in Washington, that
it was hardly fair that it should
not be directly represented in the
new terminals, and that this is a
matter which might be investigat-
ed, as heretofore suggested, to as
certain whether or not the present
change is an equitable one.
Mr.. Rhodes report will doubt
less receive early attention. Just
what action it will prompt is, of
course, a matter of conjecture, but
there are in it several suggestions
that will, doubtless, receive con-
sideration. The chief points are:
The state has legal grounds for
restoring the old rate of taxation,