State for its vast investments in that stock.
So far as that is concerned, it may be well
and prudent for the State to sell. So with
reference to the Tide Water Canal and some of
the other internal improvement companies.
But what would be done with the money? I
ask the chairman of the committee, I ask the
Convention, what would be done with the
money which the State would receive for its
interest in the Baltimore and Ohio Railroad.
I fit was sold for $4,000,000 or $5,000,000
to-day—I have not the tables before me to
show the exact amount of interest the State
would have—the Comptroller must, tinder
this section, apply the amount to the payment
of the public debt. He would have to go into
the market and purchase up the public debt
in order to pay it. How much of the public
debt could he purchase with the $4,000,000
or $5,000,000 which the State may derive
from the sale of its interest in this road?
No one could undertake to say that at prevent
rates the State could derive one-half the
amount—the nominal amount for which it
was sold—in liquidation of the State debt.
The bond holders of the State have the right
to hold on to those bonds until they become
due and payable. They would hold on to
them because the investment is secure, 80
that the Treasurer could not go into the mar-
ket and purchase those bonds.
Look at the Comptroller's report even for
the last year, and see what has been necessary
in order to apply the increment to the sinking
fund. He was unable to get the State debt,
and he was obliged to go and invest it in
other stocks which may or may not turn out
to be profitable to the State. If we sell
out our interest in such a dividend-paying
stock, as the Baltimore and Ohio Railroad, it
is a financial question, what shall we do
with the money? Shall we use it in buying
other stock? What other stock will pay
better to the State of Maryland than the in-
terest which she now holds in this work? I
know of none in the market. I know of no
investment which the State could make, bet-
ter than its interest in this road, which would
be as profitable in a financial point of view
solely, as this present railroad stock, and the
bonds which the State holds,
My amendments propose this: to give to
the Legislature the discretion, first, not to
impose it upon them as a duty and an obliga-
tion which they must carry out, but to leave
it to their discretion that they may sell, they
may pass laws; that there shall he nothing
in this Constitution prohibiting them from
doing it. Then the second amendment I pro-
pose is that the State may, in its discretion,
sell the interest of the State in such internal
improvement funds as it sees fit. The inter-
est of the State in the Chesapeake and Ohio
Canal probably would not sell for a large
sum; and there would be less inconvenience
in investing that money towards paying off |
the public debt than if the sum was much
larger. So with reference to the interest in
the Tide Water Canal, and so in some of the
Eastern Shore railroads.
But, if you impose upon the Legislature
the obligation to sell all the interest of the
State in the Baltimore and Ohio Railroad
included, you will find that the Legislature
at its first session after this Constitution is
adopted, will be Besieged by those whose in-
terest it is to have this property sold regardless
of the interest of the State, pressing a law
providing for the sale of it, and pressing it
through to the great detriment and loss of
the State, in my judgment. I should be un-
willing therefore to impose it as a duty upon
the Legislature to do this thing, making it a
constitutional duty. I am opposed altogether
to selling the State's interest in all the public
works of internal improvement. Some of
them can be well enough disposed of; but
others I think the State should hold on to
irrespective of every other consideration, as a
question of finance, as a question of the proper
investment of the funds of the State.
There are, in my judgment, other consid-
erations. The question has been before the
people of the State, time and time again,
whether or not it was for the interest of the
State to part with its control over the Baltimore
and Ohio Railroad, and to leave it entirely
to the control of the private stockholders and
State directors. The stock of that railroad
company never has taken the market in Wall
street, in New York, simply for the reason
that the State itself holds a controlling influ-
ence in the direction of that company. There
are grave considerations why it will be best
for the State to retain its control over that
internal improvement company, extending as
it does from one end of the State almost to
the other, so important to the interests of the
city of Baltimore, so important to the interests
of the State generally. I think it right that
the State should hold on to its control of that
great work.
Mr. SCHLEY I do not know that it is in-
cumbent upon me to answer the queries of
the gentleman from Anne Arundel (Mr. Mil-
ler,) as to what disposition or investment is
to be made of the proceeds of these public
works after sale. The question of expedi-
ency, as to the conversion of the funds, I am
not here to answer. Still, I may with pro-
priety say this: that the stock in the Balti-
more and Ohio Railroad as in every other
railroad in this country, is more or less
what is termed a fancy stock. It is liable
to great fluctuations, It happens to be now,
and will probably continue for some time,
80 long as this war lasts, above par. Af-
ter that the great probability is that it will
descend far below par. Assuming such to
he the case, it will be advisable to sell while
it is up. As to what shall be done with the
proceeds in the interval, what shall be done |
