vi REPORT OF THE COMPTROLLER OF THE TREASURY.

Loan of 1902," for the purpose of erecting new State buildings

and the completion of others, viz:

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

Heating Plant, furnishing, etc., Annapolis.......... 140,000

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

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

But $400,000 of this loan was issued during the fiscal year
1902, bearing,date of July 1, 1902, as it was deemed wise to
issue only such an amount as the necessities of the work
demanded, therefore it became necessary on July 1,1903, for the
remainder of said loan, viz: $200,000 to be issued. Bonds to
this extent were sold as of that date and, while taken by the
State for its sinking funds, nevertheless the moneys arising
from such sale came into the Treasury as an extraordinary
receipt.

Second. During the fiscal year to wit December 11, 1902,
there was paid into the Treasury including penalty and inter-
est, the sum of $225,017.92, being in full of all taxes upon the
gross receipts of the Northern Central Railway Company from
the year 1896 to 1902 inclusive. By reason of such arrearage
of taxes, said amount came into th.e Treasury also as an extra-
ordinary payment. The above sum was covered into the
Treasury as the result of a decision of the Supreme Court of the
United States in favor of the State of Maryland, in the case of
the Northern Central Railway Company, the effect of which is
so far-reaching and important to the State that I desire to quote
from my former report to His Excellency, John Walter Smith,
in order that your Honorable body may be fully advised as to
its scope and meaning:

The important question presented in this case was, whether
the provision in Chapter 16 of the Acts of 1880, whereby the
said Northern Central Railway Company was liable for an
annual tax of one-half of one per centum upon its gross receipts
within the State of Maryland, was subject to repeal by any
subsequent Legislature, and if so, whether or not in fact the
said act was not repealed by Chapter 559 of the Acts of 1890,
which imposed an annual tax of one per centum on the gross
receipts of all railroads within the State of Maryland operated
by steam.