viii REPORT: OF THE; COMPTROLLER OF THE TREASURY.

Treasury during the fiscal year 1898, by reason of a reduction in
the capital stock of the Central National Bank of Frederick, of
which stock the State held $22,800,00. The accretions to this
fund are further shown by dividends upon both the preferred and
common stock of the Baltimore and Ohio Railroad Company,
aggregating $4,250.00. During the present administration the
$118,100.00 of the six per cent, stock of the Baltimore and
Ohio Railroad Company held for the use of .this fund was ex-
changed for new stock in the same company, consisting of
$62,000.00 of the preferred and $88,500.00 of the common
stock, all of which will fully appear in statement "F" of this
report. Upon said stock dividends can reasonably be expected,
and in my opinion my predecessors acted with good judgment
in not selling this security.

SINKING FUNDS.

In statement "E" you will also find the very satisfactory
condition of the Sinking Funds at the close of the fiscal year,
showing in detail the several transactions therein made. The
receipts for the year, including the balances to the credit of
said funds September 30, 1899, aggregate $686,587.00, and
are held in the following Sinking Funds for the benefit of the
loans therein mentioned, to wit:

Consolidated Loan of 1899.......................... $523,587 00

Penitentiary Loan................................. 113,000 00

Insane Asylum Loan............................... 25,000 00

General Sinking Fund............................... 25,000 00

Total............................................ 1686,587 oo

Deduct balances September 30,1899................ 374,813 18

Actual receipts during year.................... $311,773 82

Twenty-two thousand one hundred and thirty dollars and
eighty cents of this amount represents the increment from in-
vestments, the balance, namely $289,643.02, being the amount
transferred from the cash in the Treasury proper as required by
law to keep inviolate the integrity of such funds. It is a mat-
ter, I am sure, of much satisfaction to you, that by reason
of the wise economy practiced by the last Legislature, the