Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1901-03-15
The State Wins Its Case,
NORTHERN CENTRAL CANNOT REDEEM
ANNUITY OF $4,000.

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BY decision of the Court of Appeals
yerterday the State of Maryland won a
complete victory in the Northern Central
Railway annuity case, and the obligation OF
the railroad company to pay to the State
annually the sum of $4,000 is settled as
irredeemable.
1t means even more than this, as 1t gives
the State gain of $1,500,00O, valuing the
annuity at per cent, which Is generally
conceded to be about its market value. On
per cent basis 1t would thus be worth
5000, 900, or double the amount for which
1t was originally redeemable. The right OF
redemption was not availed Of by the North
ern Central within the time fixed by the act,
which was period OF 10 years after its en-.
actment.
Attorney General Isidor Rayner, who rep.
resented the State In the case, was warmly
congratulated on this victory yesterday.
Mr.. Bernard Carter, counsel for the North.
ern Central Railroad, was asked by re-
porter of the Sun if an attempt would be
made to carry the case to the Supreme Court
Of the United States. His reply was:
mo. AS understand it there is no
ground for an appeal"
Attorney General Rayner says that the
Supreme Court has no jurisdiction whatever
to review the decision of the Court of APP
peals.
The decision was rendered by Judge Page
1t affirms the decision made by the Circuit
Court of Baltimore City, which was in favor
OF the State. The case was argued before
the Court of APP peals at the October term.
The suit was Instituted by the railway com.
pany for the purpose of obtaining decree
declaring that by the true construction o:
the Act of 1864, Chapter 800, and of the in.
strument executed and delivered hereunder
the obligation of the company to pay to the
State 5000 per annum was and is extin.
guishable upon the payment into the Treas
ury of the State of the sum of 81 500, O00, with
the arrears, II any, of the annual sum. The
damus requiring the acceptance by the State
OF this sum. In the lower court this bill
was dismissed.
1t was commended in the appeal to the
higher court by the appellant that the trans
action under and by virtue OF the Act of
1854, Chapter 800, was an arrangement made
on past indebte dness, which still remains,
and that in consequence thereof there be.
IN la ha inht ~
ton upon the payment OF $4,000 the
amount of such Indebtedness The question
before the Court to decide was whether the
appellant and the State were to create and
secure by mortgage an annuity only, or was
1t intended that the mortgage should secure
the payment of the principal sum OF 81 $780,
900 and the clauses referring thereto were
no more than special provisions designed to
assure to the State the prompt receipt of in
terest.
The decision of the Court of Appeals says
ave do not find anything in the provisions
of the act or of the mortgage that would
justify us in holding that the parties intend
ed to create something other than mere
annuity. 1t is clear, we think, there is not
now, and never has been, any sum due
from the appellant to the State, other than
those accruing from the non-payment of the
amounts payable on account of the annuity"
This decision closes what has been one of
the most notable lawsuits in which the
State of Maryland has ever been partici-
ha -,
going on about four years Last June on
the advice of Attorney General Rayner the
State officials declined the tender of 81 800
600 made at that time in gold by the rail-
road company. The company then instl-
tuted suit to enforce acceptance.
Speaking of the decision last night Mr..
Rayner said: "The State under the decision
of the Court is now the holder of an annu.
ity of $4,000 year, which, | think, is
worth from $2,75O,0O0 to $3,O00,0O0 Can
not say whether the State will sell this in
vestment. The Legislature of 1893 placed
a minimum value on 1t of $2,5O0,O00. 1t
would, however, command a much higher
price than this. | think 1t would be the
proper thing if the State desired TO sell it to
give the Northern Central the first oppor-
tunity to purchase it, This company has
acted with perfect fairness to the State 10
this proceeding. 1t was DESTROYS Of having
the controversy settled and the question de
termned as 10 what this investment really
was. If 1t desires to purchase the annuity
and the State desires to sell 1t do not be-
lieve there would be much controversy over
the valuation.
The annuity came TO the State in ex-
change for claims 1t had for some $2,200,-
900 advanced toward the construction oil
the lines which subsequently became the
Northern Central railroad. For these claims
1t accepted from the latter company this
annuity.-BaIto. Sun of SATURDAY,