REPORT OF THE COMPTROLLER OF THE TREASURY. XV

the retrial of the case, the State won, the company taking an appeal
with the result of an affirmation of the judgment of the lower
court by the Court of Appeals on December 7, 1900. From, this
judgment the company took an appeal to the Supreme Court of
the United States, with the result as hereinbefore mentioned.

Throughout the entire course of this case the State has been
ably represented by the Hon. George R. Gaither, formerly
attorney-general of Maryland.

It is but proper to add, that by virtue of the above decision, the
said company becomes liable to and has paid the increase tax under
the provisions of chapter 120 of the Act of 1896, which recites:
"Eight-tenths of one per cent, on the first one thousand dollars per
mile of gross earnings, or on the total earnings if they are less than
one thousand dollars per mile, and one and one-half per cent, on
all gross earnings above one thousand dollars per mile and up to
two thousand dollars per mile, and when the earnings exceed two
thousand dollars per mile two per cent, on all earnings above that
sum," under which law the tax due by the said Northern Central
Railway Company amounted to $30,763.37 for the year 1902, not
including penalty or interest.

I have sought in the aforegoing remarks to bring to your atten-
tion every matter of importance, covering the financial interests of
the State, to which, it seemed, I should officially refer. You will
share with me, I am sure, the satisfaction which the excellent
showing of the report makes.

I wish again to acknowledge the valuable assistance I have
received from the Hon. Murray Vandiver, State Treasurer, and
the loyal and trustworthy service rendered by those who are em-
ployed in my office.

Respectfully submitted,

JOSHUA W. HERING,

Comptroller.