xiv REPORT OF THE COMPTROLLER OF THE TREASURY.

was a provision repealing- in general terms all laws exempting
property from taxation. A more specific act, however, was passed
in 1870, ch. 362, repealing "every provision contained in the char-
ter or supplements thereto, of every railroad company incorporated
by the laws of this State or contained in any law heretofore passed
by the Legislature of the State whereby the stock or property, real
or personal, of any railroad company * * * is exempted from
taxation." Two years later, the Legislature, by chapter 234 of the
Act of 1872, imposed its first gross receipt tax upon steam rail-
roads, viz one-half of one per centum annually.

The records of this office show that under this statute, the tax
of one half of one per centum on the gross receipts of said com-
pany was levied from April I to December 31, 1872, amounting to
$3,082.371/2, and for each year thereafter up to and including the
year 1879, the total tax for the eight years aggregating $29,762.54.
This tax the said Railway Company refused to pay, and upon suit
being brought by the State, a judgment was recovered in favor of
the company, from which judgment an appeal was taken by the
State to the Court of Appeals, with the result of a reversal of the
judgment of the lower court by said Appellate Court, thus holding
the company liable for said tax/

Shortly afterwards the Legislature of 1880 convened, and passed
the Act of that year, chapter 16, hereinbefore mentioned, in pur-
suance of which the said company paid to the State on April 13,
the sum of $29,762.54, being the tax in full from 1872 to 1879,
both years inclusive.

The said railway company continued to pay regularly the tax of
one half of one per centum as levied until the year 1890, when the
Legislature of that year, by chapter 559, increased the annual rate
of tax upon the gross receipts of steam railroad companies to one
per centum. This increased tax the company paid under protest
until the year 1896, when it refused to do so any longer. Hon.
Robert P. Graham, Comptroller at that time, thereupon placed for
suit, in the hands of Hon. George R. Gaither, attorney, the tax for
that year, amounting to $13,142.35.

The case was tried in the Superior Court of Baltimore city, a
verdict being rendered in favor of the company. From this judg-
ment the State took a successful appeal to the Court of Appeals,
where the case was decided and remanded January 10, 1900. At