COMPTROLLER OF THE TREASURY. XXxi

pany. The indebtedness in arrear from the latter Company,
has been settled with the Treasurer. In the case of the
Northern Central Railway Company, the Court of Appeals
reversed the decision of the Superior Court of Baltimore City,
and remanded the cause to that Court for ft now trial,
in order that the amount due the State may be ascertained.
The cause is still pending in the Superior Court, and no
receipts from that company will probably be had, until its
final adjudication. The cases against the Cumberland
and Pennsylvania Railroad Company, and the Western
Maryland Railroad Company, have not yet been settled.—
The case against the Baltimore and Ohio Railroad Company,
is now pending in the Court of Appeals. A case is also
pending in the Court of Appeals, brought by the County
Commissioners of Anne Arundel county, against the Annapo-
lis and Elk Ridge Railroad Company, the decision of which
will probably go far to obviate the necessity of an action by
the State against that company. Some of the other Railroad
Companies are in default for non payment at maturity, but
I am not advised that any others are disposed to resist the
collection of the tax.

The failure of the Baltimore and Ohio Railroad Com-
pany, for upwards of two years to settle any portion
of the large amount due the State, under the con-
tract for one-fifth receipts from passengers on the Wash-
ington Branch, or to pay the dividend on the stock of the
State in that Branch Road, or any sum on account of the
amount due for taxes on the gross-receipts of the company,
has occasioned a loss to the State Treasury which has been
seriously felt. That the people of-the State, will require
that this corporation shall be forced to fulfil its obligations
to the State, is beyond doubt.

Although many years ago, when the question, involved
had been mooted to only an inconsiderable extent,
the Court of Appeals of Maryland, decided, that not-
withstanding the restriction in the 15th Article of the
Declaration of Eights, the Legislature did possess the
power to exempt from taxation the shares of stock of
the Baltimore and Ohio Railroad Company yet in view