X REPORT OF THE COMPTROLLER OF THE TREASURY.

ters pertaining thereto, and particularly to institute and conduct
proceedings to protect and promote the interests of the State relat-
ing to the several matters aforesaid, and appointing a Joint Special
Committee of the General Assembly of Maryland to conduct inquiries
concerning the rights and interests of the State of Maryland in the
Washington Branch of the Baltimore and Ohio Railroad Company,
growing out of the shares of stock owned by the State therein, and
to take any action, or cause the same to be taken, to protect and pro-
mote the interests of the State relating to any and all matters afore-
said, and empowering the said Joint Special Committee to employ
means and agencies for the performance of its duties and the execu-
tion of the purposes of its appointment," etc. .

This Joint Special Committee of the General Assembly met in pur-
suance of the said resolution and conducted the proceedings in
accordance therewith. Suffice it to say that much evidence was
brought out confirming the position of the State.

On March 27, 1906, an Act was passed by the General Assembly
authorizing the Board of Public Works to sell the State's interest
in works of internal improvement or in corporations, in which was
this proviso: "Provided, however, that in the event that the Board
of Public Works shall receive an offer of $2,500,000 or more for the
said 5,500 shares of the capital stock of the Washington Branch of
the Baltimore and Ohio Railroad Company, the said board may sell
the said stock at private sale, without advertising for sealed pro-
posals, as prescribed in the preceding section, and without any other
or further formality or delay, or in their discretion they may adver-
tise for bids for the purchase of the whole of the State's holdings and
interest in the Washington Branch for such time in such mode and
subject to such regulations and conditions as they shall see fit to
prescribe."

In pursuance of this statute the said Board of Public Works did
advertise the State's holdings in the said Washington Branch of the
Baltimore and Ohio Railroad Company, receiving a bid therefore
from the Maryland Trust Company at and for the sum of $2,500,000.
This sale was consummated largely by the enactment of said Joint
Resolution No. 1.

Section 3 of Article 12 of the Constitution prescribes that in the
sale of the State's interest in. all works of internal improvement it