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due to the State, certain of the Banks claimed to appropriate
to themselves, or their taxable Stockholders, the benefits
resulting, so far as they were concerned, from this exemp-
tion ; thus, whilst the Dividends and Interest due to the
State were thus exempted from the operation's of the National
Tax, and whilst by the laws of the State the Stocks held by
the State, or for its benefit, or for the benefit of the Schools'
Fund in these Institutions, were exempted from taxation,
and in the settlement of State Taxes with the Treasury
these Stocks were exempted, certain of the Banks from their
gross profits, part of which belonged to the State, or to the
"Funds," paid this National Tax from the gross fund of
the Bank, and paid also State, and in some cases, City Taxes,
in like manner, and on the profits thus reduced, declared
their Dividends, giving to the State and the "Funds," only
the same amount of Dividend paid to other Stockholders
who were liable to these taxes, and for whom the Banks paid
the taxes before the Dividends were declared.

As the Banks paid no taxes of any kind for the State, or
the Stocks held by the "Funds," and did pay from their
gross, or united means, for other Stockholders, I claimed
that for all such taxes, so paid, they should pay an equivalent,
in addition to the usual Dividend to the State. After much
controversy upon this subject the Banks, with the exception
of the Bank of Baltimore, the Hagerstown Bank, and the
Easton Bank, admitted the justice and propriety of the claim
made by me, and made settlements upon the basis I claimed.

The three Banks named have not done so, and suit has
been brought by the State against the Bank of Baltimore, to
obtain from that Bank what is believed to be a legal and just
settlement of this question. This suit is still pending.

Many of the accounts of the incorporated Institutions of
the State for State Taxes, remain unsettled. Some of these
Corporations have paid no taxes for years.

The system of collecting these taxes is a bad one ; they
are required to pay directly to the Treasurer, and miscon-
ceptions in relation to the assessments under which they are
to pay, cause many of them to remit a less sum than they
should. The Comptroller, with his other duties, can scarcely