REPORT OF THE COMPTROLLER OF THE TREASURY. xi

FREE SCHOOL FUND.

Statement "E" will give you in full the receipts and disburse-
ments on account of this- Fund. The total receipts during the
year, including the balance brought down from the year pre-
vious, are $87,899.09, while the disbursements during the same
period were $79,272.24, leaving a balance of $8,626.85. In this
Statement you will observe a receipt of "Baltimore and Ohio
Eights, $4,451.87," which, together with the sum of $1,409.68,
received from the same source during the fiscal year 1902, aggre-
gates $5,861.55. This sum was invested by the Treasury
officials in United Railways and Electric Company's First 4
per cent. Gold Bonds, costing $5,592.50, the par value of which
is $6,000, and placed to the credit of this Fund, thereby in-
creasing its annual revenue $240.00. In explanation of this I
would state that the Baltimore and Ohio Railroad Company
in increasing its stock issue, gave the right to its stockholders
to increase their holdings if they saw proper so to do. The stock
at the time being above par, the Treasury officials sold the
State's rights to subscribe for additional stock, for the sum
above named, $5,861.55.

SINKING FUNDS.

In Statements "E" and "F" are exhibited in detail the several
transactions of these Funds. As every dollar to their credit
during the previous year was invested, no balance was available
for the fiscal year ended September 30, 1903. The receipts
during this period were $377,853.61, with disbursements of
$363,688.71, leaving a balance of $14,164.90. These moneys
were invested in securities, the par of which is $359,000, as
follows:
$25,000 Havre de Grace City 5's, costing........ $27,343.6',

134,000 Allegany Co. Con. Debt 3 1/2's, costing.... 136,345.10

200,000 State Loan of 1902 3's, costing.......... 200,000.00

Cash balance carried down............. 14,164.90

$359,000 Total ............................ $377,853.61

The above item of $200,000 of the "State Loan of 1902" repre-
sents the remainder of the $600,000 Loan, and bears date of