CHESAPEAKE AND OHIO RAILWAY COMPANY is a modern day development of George Washington's plan for a transportation system to connect the waters of Chesapeake Bay with the Ohio and Mississippi valleys. Much of its line is laid on the original route of George Washington's canal companies and other parts parallel the routes which Washington surveyed for wagon roads. The present company was incorporated in 1868, a consolidation of two small lines—the Virginia Central and the Covington & Ohio, which were linked and pushed westward. In 1888 it absorbed the Richmond & Alleghany, and took title to all the "rights of way and appurtenances" of George Washington's James River Company, of which Richmond & Alleghany was possessor. Chesapeake and Ohio's eastern terminals are at Wash ington, D.C., and Hampton Roads, Va. One of the great east and west trunk lines, it pierces the heart of the rich bituminous fields of West Virginia and Kentucky and has western outlets at Louis ville, Ky., at Toledo, Ohio, on Lake Erie, and through Cincinnati it reaches Chicago on Lake Michigan. It operates 3,117 miles of railroad. More than three-fourths of its traffic originates on its own lines. Its control now is with 0. P. and M. J. Van Sweringen and their associates. Cost of road and equipment on Dec. 31, was In 1934 the operating revenues were ; operating expenses, $60,814,971; operating ratio, 55.5%; net railway operating income, $36,997,795; other income, total income, $38,051,289; fixed charges, $9,988,887; surplus after charges, $28,062,403. (W. J. HA.)