, 1870-12-27
The Indebtedness Of tho tsnittnl orc Il
Onio IkAi9Tond Company to the
state OF MARY Eaud-'Ihc Interest
PuFab1c In told.

From. the Eaufm orr Ameriea-. Dtr. g.
In the year 1885, the STATE Of Maryland
loaned the baltimore i Ohio Railroad Com
pAny three tniiiona OF dollaEs, and co7enAnted
that she should fecelve perpetual dlSi5e:':l
thereon OF per cent per anru:n out OF tire
glo'. e.ruings Of the COMPANY. The sH =
e,1ilsion was paid by giving the coc'-
.auy the bunds Of tta STATE for til.
a,Eoatt. leA:iug per cent interest, paI-
:. IL II. chi seui-ann1alty in Lorden. Al was
r.'1s";E rror1eea ea :as faee 81 ,se eon"s
i - t:.e Iibln it.tsntian ct tbs Lesi--
IL. ~ Lat tbs per ceot received from the
:ny shnn11 h. equivalent to the S Per
CRIT I'D il L,niaon, the difference bst~eaa
tic s'550. coo paid 10 he State, aud tho S1Ec.-
00c paid by the State IN Londou,. beins iu.
commissions. Aud, accoraiag to the eecouus
kept and rendered by the company. the t@o
accounts pseci.e1y balanced eAch other up to
the time ol the breaking out Of the War. At
ter that time. however. gold went 12, or rasft-
er currency weas down, and ns the seual-su-
puA rayments we're made from that time the
difference increased, until, in 1861, II required
$500 0co in curEeucJ to pay slGo,o0 in goId
in London. The company. hoNevfr, con-
tiuued to pas the State 2lSa, 600 IN currency
1000 every t!x u1onths).
For tie difference between $4,000 IN go'd
and IN currency 1t the tiue the respective
eenfaunnai payments we're made the stste
brought spit- The case WIS suhlni.ted to the
ccuJt for It's determination, without the nd
Of jury. rrcn N agreement signed bS tne
counee1 On each side. Il was argued Tor tie
p!xinuf that bs the terms Of the statute the
company Wa required to pay six peg cent aa-
uually upon the loan n gold; tiat the dol
I&1s contemplated b. the 1c6izlatnre we're
gold dollars, and that it WAS fundamental
condition Of tho loan thAt the amount recetved
equivalent to the amount the state Tas
compelled to pay Auuaalf! In Lonuon. the
nxma being the interest On the State bonds bE
1hich The money .Eas raised. Il Is contendet.
on the other hand, BY tue defendant, that the
money which the statute required to be paid
to the Secretary WA in the uatuIe Of CIVIL
dend that tie State VAS really stoekhohsr,
and bound to take her dividend in whatever
currency the company eA1ned il: inst tne
ac,s OF Congr.es, commonly known IS tue
| !. LeEaltendcr acte," had made ths currency
Of the United States (gteenoaess and th'
| for al debts: and that II tho State eTer vas
! entitled to claim, she WAS e.toppe3 by tbs
acquiescenee Of her efdtars in the payments
| wh,sh hid been made II currency.
| Jrdge Dothin yesterday filed his opinion II
! the Superior Court scataining the claim OF
the Stste for the difference between gold znd
currency 1t the time the saverl semi -snnnA
| payments Of interest on the three million loar
| we're made 10 the State. Under this decision
tbs company Is bound to psS to the STATE
1000 feHi-annuany n go!d for III time Z
come, and to make good an differences b.
tween gold znd currency st tho time all forms
payments were made. He deciacs that It "
The intention Of ths Legislature that the 3lso,
600 pay able to the S,ata annually should be j
gold th1t it Was ! contEacs Tor payment j
Sold. and that the 1egaltender acla do NJ
HE roiat rafsed By tho defendant, that u
State, 6y the acts Of her of6eeEr4 had bst
! e.topped from recovering. the court dispoa*l
| ct in few sentences. The only power cou
petent to hind the State By \ contract, or (,
feaee her from contract, is formal aet
legislation. 1t was not clximed in the arg
!. ment that any sueh statute haa been pasze
J Tho railroad company suhraisted to the coa
: | = prayer,@ in which Ill the Legal-tander u
} are recited by title, and the court wa a.k
to rule that they are constitutional aud Of +
force md effect. Iudge poabin rejected t
, prayer without expressing an opinion Is
! The constitution Lity Of Tho scss. He b
7 previously decided that they did not apply
The cssa under considerasl<ln.