The Sinking Fund.—This fund by its own accretion and by
the addition of surplus revenues of the State, has increased from
$3,426,749.55, its amount, at the dale of my last message in
1855, to $3,997,276.44. The amount of surplus revenue trans-
ferred to the Sinking Fund, which is dune by the Treasurer at his
discretion, under the Law of 1854, was in 1856, $56,875.02, and
in 1857, $126,224.78. The interest of the State bonds consti-
tuting said fund has been regularly and judiciously re-invested in
State bonds by the Treasurer, who has sole charge of this fund
under the laws. The interest of the Sinking Fund, thus re-invest-
ed was in 1856, $176,640 66, and in 1857 it was $195,111.47.
Thus it is a gratifying circumstance that this fund, which, at the
commencement of my administration in 1854, was but $2,870,-
704.71, now amounts to nearly four million of dollars, and its
future increase will be in a greater ratio from year to year.

PUBLIC WORKS.

The large pecuniary interest and liability of Maryland in the
four great public improvements of the State, render their successful
operation of great importance to every tax payer and citizen.
And the advantages to be derived from their active and profitable
management is no less important to the agricultural and mineral
development of the State, and the promotion of the trade, com-
merce, progress and prosperity of the city of Baltimore and the
State at large.

Baltimore and Ohio Rail Road Company.—The interest and
liabilities of the State in and on behalf of the Baltimore and Ohio
Rail Road Company amount to stocks in the main stem $685,600;
in the Washington Branch $550,000; Company's bond $10,000;
5 per cent sterling bonds issued for the Company, $3,200,000—total
interest and liabilities of the State in said company, $4,445,600,
upon which the State received the past year, 6 per cent on the
stocks of the Main Stem, and the bond, 9 per cent on the stocks of
the Washington Branch, and the interest upon the sterling debt
was fully paid by the company in London. The State also re-
ceived an additional sum of 876,038 for one-fifth of the passenger
receipts on the Washington Branch Rail Road. The pecuniary
aid rendered by the State to this great work, has not only assisted
materially, in its construction, but the road has proved from its
commencement, including the passenger tax of one-fifth, on the
Washington Branch, a profitable investment.

The annual report of the President and Directors of the Com-
pany for the year ending October 1st, 1857, exhibits a continued
increase of prosperity. The gross earnings of the Main Stem of
the road for the last fiscal year were $4,616,998.95, being an in-
crease of $231,047.48 over the preceding year, and of $905,545.-
10 over the fiscal year 1855. The working expenses and repairs
of the road for the past year were $2,760,785.14, being about 60

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