vi

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 appear 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.

RECEIPTS FROM SALES OF BANK AND OTHER

STOCKS.

The sum of $840,695.91, was realized from the sales made
by the Governor, Comptroller and Treasurer in pursuance of
the Acts of 1866, chapter 155,160 and 170, of the bank stocks
and dividend stock of the Baltimore and Ohio Rail Road Com-
pany held by the State. The par value of the stocks sold,
was $773,374.66, which the amount realized exceeded by the
sum of $67,321.25; (See Statement "F.")