COMPTROLLER OF THE TREASURY. XI

The Disbursements will be found in detail, With, the par-
ticular Act of Assembly under which each payment was
made, set forth in "Statement 13."

Among the Securities held by the State are Bonds of the
Susquehanna and Tide Water Canal Companies secured by
Mortgage, amounting to ono million of dollars, bearing six
per cent. interest, and hitherto classed among her productive
capital. I have not yet had the time and opportunity to
make myself familiar with the nature and character of these
Securities, and have therefore continued them in the class in
which I found them in my List of the State's Assets given in
"Statement I." I learn, however, 'that the . Philadelphia
and Reading Railroad Company has leased and is working
these Canals, and that as part of the terms of the lease the
said Company has agreed to pay to the State the interest on.
these bonds, and that the only alternative which the State
has upon the failure of the Company to pay the interest, is
to take possession of the Canals. I do not even know
whether this information is entirely correct. Your Excel-
lency is, however, doubtless familiar with the matter, and
my object now in calling attention to it is to report that the
interest is due upon these bonds from the first day of January

1877

Last winter, as your Excellency knows,- the President of
the Philadelphia and Beading Railroad Company manifested
on behalf of the Company a desire and willingness to pa^rthe
interest in cash up to the first of January 1878, provitUkl fcl|0#*
terest bearing scrip of the Company would be receiy«d^%iilre
years' interest in advance. The Legislature upon the recom-
mendation of the Board of Public Works, passed an Act id
conformity with this wish, which on account of a serious defect
in its language could not be approved by your Excellency,
The Treasury Officers, however, indicated to the President; of
the Philadelphia and Reading Railroad Company, through,
tho kind offices of Mr. Enoch Pratt, Vice-President of the
Philadelphia, Wilmington and Bahimore Railroad Company,
their willingness to accept the proposed payment in cash,
and carry out as far us in their power the desire of his Com-