VI REPORT OF THE COMPTROLLER OF THE TREASURY.

$600,000, to be known as the "State Loan of 1902," for the pur-
pose of erecting new State buildings and the completion of others,
viz.:

State House Annex ...........................................$250,000

Heating Plant at Annapolis......................................140,000

Completion of Fifth Regiment Armory......................... 120,000

House of Correction Annex,.................................. 90,000

Acting under the authority and by virtue of the discretion con-
ferred in said statute,only $400,000 of the loan was' issued, viz.:

State House Annex.......................................$150,006

Heating Plant at Annapolis................................... 140,000

Completion of Fifth Regiment Armory........................ 60,000

House of Correction Annex................................... 50,000

It being deemed unwise to issue a greater sum than the necessi-
ties of such work demanded, the whole of this issue was taken by
the State for its Sinking Funds, as will be more fully explained
later, with the intention in the future of taking the remainder of
the issue whenever, the same may be needed.

It is also proper to state here, that there was received into the
Treasury from the Northern Central Railway Company the sum
of $202,500, or nine quarterly instalments of $22,500 each, which
the company had declined to pay since April 27, 1900. Of this
amount, $90,000 belonged to the last fiscal year and $112,500 was
for payments due in former years. Such payment was the result
of a decision by the Supreme Court of the United States, adversely
to the railway company, thus fully guaranteeing to the State its
most valuable asset. A brief resume of this case will be interest-
ing, and to which I invited your attention in my former report, and
think it proper to do so again:

"Under the act of 1854, Chap. 260, an agreement was entered
into between the State of Maryland and the said Railway Com-
pany, wherein it was stipulated that the Company should pay to
the State an annuity of $90,000, being at the rate of 6 per cent,
on $1,500,000, the amount due the State, said Company executing
a mortgage to cover such annuity, with the privilege of exting-
uishment within ten years from the date thereof. The said Rail-
way Company had promptly paid to the State each quarterly in-
stallment due thereunder up to and including the one due April 27,