Year: 1869

We yesterday referred to some comments of
the Snow Hill (Md.) Shield i'm regard to the course
of the Baltimore and Ohio Railroad in with
holding from the State Of Maryland the capita
ton tax levied on passengers on the Washington
publish letter from John w. Garrett Presi-
dent OF the road, to Governor Bowie, in answer
to one Of his dated on the 4th day of November,
le6s, requesting the company Ito continue to
make payment into the Treasury of the State of
one-ffth Of the money received by il for the
transportation Of passengers between Washing
ten and Baltimore" Mr.. Garrett says: THE
committee OF this company, and il has made
full report to the Board of Directors upon all
the Questions connected Herewith, and the
board has approved and adopted the report"
and he transmits copy Of this report to the
Governor, in order that he may perceive that
the failure of the company 10 comply with his
request does not proceed from any purpose TO
avoid the fulhllment of its legal obligations,
but is due only to conviction that it has not
the corporate power to continue to make the
payments" He calls the Governors attention
ber, 1864, to the Comptroller of the State, in
reference to debt due this company, amount
ing on July the lst 1866, to S2s9 $685. for cash
advanced on account Of the State, to which no
response has ever been received"


The report of the Finance Committee referred
to in the correspondence Is a very long docu-
ment, and it appears was adopted by the COM
pany at its monthly meeting, on the sth inst,





that being cast by one Of the State directors.
The report gives history of the legislation
chartering the company, as well as that making
subsequent special provision for the building OF
the Washington Branch road, to which the
state, in 1888, subscribed $500 600 of stock with
the requirement that one-fifth of the whole
amount received from transportation of passen-
ground on which the Company places its deciie
nation longer to pay the State one-fiffh OF
receipts from passengers Is the fact that IL has
In course OF construction between Baltimore
and Washington. In addition, the company
holds that IL has not now the right as a corpo-
ration, to continue to pay this tax as IL now
terms the requirement, in view of the decision
OF the supreme Court In the case of Crandall
VS.. state OF Nevada, which is declared 70 be in
express opposition to the power of a State
to derive revenue from such a source.
Wniie the State makes this demand for the one
nth Of passenger earnings, it is held by the
company 70 be unwise to reduce the fare hut
the committee recommend that the rate of fare
be reduced one-fifth whenever the State shall
formally abandon the claim, and il Is declared
that the company has no purpose or desire to
appropriate to its uses the proceeds of the Al
ieged tax. The Baltimore Sun says: 1t has here
tofore been contended that the requirement for
the payment to the State of one-ffth of the eross
receipts from passengers was not in any correct
sense capitation tax, it not being levied so
much per head. 1t has been often SO Construed
however, and made the basis of hostility To the
company, and sooner or later, with CONNECTING
lines constructed, was likely to be BROUGHT to
issue Presuming that the State will contest the
Iosiuon taken BY the company in the matter,
and this IT is understood to be the desire of the
COMPANY shall be done