1419

further condition that the company should secure by mort-
gage the payment of the interest on the stock created by the
Act, at least ninety days before the first day of January and
July in every year, for the term of three years from the date
of the bonds, together with the costs of transmitting the in-
terest, and the difference in exchange of currency between
London and Baltimore.

It appears that after the delivery and sale of the Sterling
Bonds, the company did remit the interest to London, includ-
ing the price of exchange and expenses, and continued to do
so until October, 1865, when this Department was notified
through the President of the company, that its obligation to
remit the interest and exchange, ceased three years after the
date of the Bonds, and that it was only bound to pay to the
State a dividend of six per centum in semi-annual instal-
ments.

Because of this refusal of the company to pay the interest
in London, on these Bonds, as usual, it became necessary
for the Treasurer to provide for the same.

For the years prior to 1862, the rate of Exchange being low,
the payments of interest on this loan made in London by the
Company, including all expenses, (as it appears from a state-
ment lately rendered to this office,) were less by more than
$70,000, than a dividend at the rate of six per centum per
annum, payable here, would have amounted to; which sum—
according to the construction now sought to be placed upon
the Acts of Assembly above referred to—should have been
paid into the Treasury.

But it does not tappear that the company ever made any
tender of payment of this difference, or even rendered any ac-
count; nor is there any charge on the books of this depart-
ment against the company on this account; clearly showing
that, in the view of the then officers of the Treasury, the ob-
ligation of the company to the State was discharged upon
the payment of the interest in London, and expenses.

By reason of the high rate of exchange, the sum paid by
the company for interest on these Bonds for the years 1862 to
1865, inclusive, is largely in excess of the amount which it
admits to be due to the State.

For this difference the Company makes a claim against the

State.

No proceeding has been taken for a judicial ascertainment
of the rights of the State in the matter, as it is doubtful whether
there is sufficient authority for doing so. In view, too, of the
importance and gravity of the questions involved, it was
deemed better to refer the whole subject to the General Assem-
bly.