vi REPORT OF THE COMPTROLLER OF THE TREASURY.

There must be eliminated, however, from the above state-
ment the increase of $540,780, since this sum is represented
by the proceeds of the sale of bonds for State roads and cannot
be used by the State for current expenses, but is specifically
dedicated for the construction of State roads.

The increase of $275,972.09 from High Liquor Licenses
from Baltimore City is also worthy of explanation, inasmuch
as "three-fourths of this sum is returned to Baltimore City,
leaving a net increase to the State of only $68,993.02. Chap-
ter 196 of the Acts of the General Assembly of 1908, known
as the High Liquor License Law of Baltimore City, has now
been in operation two years, a sufficient time in which to judge
of its efficiency as a revenue measure. By the provisions of
said Act the cost of such licenses was raised from $250 to $500
for the year :1908, and to $750 for the year 1909, and I beg
to submit herewith the following statement:

Year. Receipts. Paid to City. Net to State.

1907........................ $597,951.77 $448,813.43 $149,158.34

1908.......................... 1,003,784.59 753,237.14 250,547.45

1909.......................... 1,279,756.68 960,192.26 319,564.42

The increase of $146,210.85 from the Tax on Collateral
Inheritances is largely due to the increased tax from 2 1/2 per
centum to 5 per centum, Chapter 695 of 1908, and while this
revenue must depend upon the value of estates descending col-
laterally, it necessarily increases this revenue 100 per centum
over the old law.

Therefore, eliminating all the revenue received from dedi-
cated funds, as well as the balance brought down from the
preceding year, the following statement will show you the
revenues of the State applicable to the ordinary running ex-
penses thereof, viz:

Total receipts for the year .....................		$5,400,104.69
Less direct tax from Collectors...................	$1,255,359.89
Less direct tax from Incorporated Institutions. . . .	107,592.59
Less direct tax from Baltimore City stock ........	42,982.25
Less State Roads Bonds, sold ...................	640,830.00
Less High Liquor Licenses, Baltimore City ......	960,192.26
Less receipts of Oyster Fund ...................	61,628.61
Less State Tobacco Inspections..................	4,279.49
		3,072,865.09
Total .......................		$2,327,239.60