X REPORT OF THE COMPTROLLER OF THE TREASURY.

the time of filing the bill George B. Roberts was Surviving Trus-
tee under the said mortgage and deed of trust.

Of the said twenty-five hundred bonds eighteen hundred and
eighty-two are outstanding, the Pennsylvania Railroad Company
holding eighteen hundred and twenty-two and the State of Mary-
land holding sixty, or, in other words, of the sum of $1,882,101
due thereon, the Pennsylvania Railroad Company has $1,822,000,
the State of Maryland $60,000, so that the whole indebtedness
is held by these two parties.

The unpaid coupons amount to $1,185,000. No interest has
been paid to the State since August 1, 1880.

The Columbia and Port Deposit Railroad Company and George
B. Roberts, Surviving Trustee, filed their answers admitting the
allegations of the plaintiffs' bill of complaint and submitting to
such decree as might be proper in the case. Of course, in the
absence of legislation, there was no authority for the Attorney -
Genetai to appear for the State, and in, his letter on the subject
to the Governor he says that there is no reason why the State
should be made a party plaintiff, as its interests were the same
as those of the Pennsylvania Railroad Company.

The Court has entered a decree of foreclosure, under which
the property, rights and franchises are to be sold at public auc-
tion in Philadelphia, after due notice by advertisement for sixty
days prior to the sale. This being the case, it would be advisable
for the Legislature to give authority to the Attorney-General or
Board of Public Works to take such action as seems best to pro-
tect the State's interest under the circumstances.

CHESAPEAKE AND OHIO CANAL,

The Chesapeake and Ohio Canal was incorporated and con-
structed for the purpose of supplying a convenient water way
for the purposes of commerce through that section of our State
which it traverses. It is encumbered bj a very large debt to
the State, secured by mortgages, and by the interest which has
accumulated upon such mortgages. It is largely indebted under
the provisions of the Act of 1884, Chap. 281, and is subject to a
primary lien upon its property, tolls and revenues to the extent
of $500,000 and accrued interest, under the express provisions of
the Act of 1878, Chap. 58. It is also indebted to persons who
have furnished material and labor in operating it and keeping it
in repair. Claims of this class ought to be protected as far as
possible. The justice of this is very apparent. These creditors,