The Washington union. [volume] (City of Washington [D.C.]) 1857-1859, 1858-01-30
THE o,HHysAprAKr AND ONO CANAL Il t'''

THE CHEssAPEAKEAND OHIO CANAL
n0 one of the holders of the preferred bonds issued
- the chesapeake and Ohio Canal Company, have re-
ny examined into the security offered by the DOCKS OF
hat company for the payment of the principal and inter
Al Of its preferred debts, and good deal surprised
- DISCOVER that the holders of the 81 700, 900 of bonds
med 10 complete the canal have power to enforce
sr payment These bonds issued in pursuance OF
h provisions act of the general assembly OF Mary
land passed March 10th, 1915 Prior to that the State
Maryland to secure the payment of interest and prin
na Of loan of large amount held preferred lien or
s mortgage ON the whole of the net and of
b rights lands aud other property of the canal
mnany By this act of lS45, the State consented TO
1.-Two the right thus secured, lar the Of the
anal company affected n favor OF those who might
hase bonds not exceeding ST. 700, 900 in amount to
Ia issued by the canal company But the State did not
~ its rights so far they affected the rights lands
and other property OF the company So that the holders
~, these preferred bonds look only to the
m ,er PAYMENT Not only So but in the act of March
"a ls45 the State stipulated expressly that the presi
t and directors of the company shall at oil times,
have mower to the tolls and of the
many to keep the canal in good condition. to provide the
ouse supply OF water, and to pay salaries of officers
and agent and the current expenses of the company.
Seeing this is il not high time for the holders of these
canal bonds to look to the and value of the
ty we hold The interest these bonds has not been
pad Adding to the principal the interest due, and we
have debt OF not less than ~, 500 900 To this sum
zoe are 10 add not less than $500 600 pay the debt due
to the old Potomac Company, and to pay for repairs and
other expenses authorized by the president and directors
in Pursuance Of power given to them by the act OF March
10 ls45 and for which the of the company
to be used y to pay before any part OF them can be APP
peI to the payment of the 50 900 due on bonds is
u,I To complete the canal Cumberland The figures
r which INV estimate of the amount of these debts is
made will be found in table appended to the report of
e president of the canal company made to the stock
holders in June How much more money has been bor-
,veJ for building dams Nos and 8, and for other ex
renses since June last, know not Neither do we
know how much money is to be expended to complete
these dams and keep the canal in navgable order.
Nor do we know how much the expenditures for repairs
will exceed the net incomes of the company, annually,
hereafter 1t may not be, unreasonable to estimate the
ann required to pay expenses incurred for repairs since
une last to pay dams Nos and s, when completed
and 10 nut the canal in good navgabe order at $3.50,
600 And IT, in this estimate, right, where, lot me
ask ia this large sum of money to come rom And il
loaned, how is il to be repaid
II will be perceived that the debts of the company Gre
sted for repairs and other purposes and constituting
lien on its prior to that of the holders of the
bonds issued to complete the canal amounted in June to
$500 600 Add to this $3.50 900 more and shall have
ST. $50 900 debts bearing interest of SIS 900 per
annum to be paid out OF the net before the
holders of these preferred bonds be entitled to receive
even the their claims Looking to the expe
renee of the past it may not be unreasonable to
that at least $50 900 annually of the incomes of the
pany will be required pay for ordinary repairs and to
deray other unavoidable expenditures If add to that
sim the SIS necessary to pay interest debt incur
red and to be incurred have stated, and have
annual expenditure of $l8 900 TO he taken from the tolls
Of the company which exceeds the average annual
amount that can be anticipated from tolls for several
Years come unless there is very great and unex-
peoed change In the present depressed condition of the
coal companies of the Alleghanies.
But what the holders of these preferred bonds to
yec while these debts for repairs interest and principal
being liquidated Would it not be advisable for the
holders of these bonds to and consult together be-
fore it il too late Unless decisive measure be
adopted in the opinion of the writer the day is far dis
tant when the canal would not sell to any prudent
arties for sum nearly sufficient to pay these preferred
drbts. rs fe
It not intended by what is here said to reflect upon
those who have had the management of the canal in
charge The writer has knowledge OF the details OF
that management that would justify an expression OF
opinion ncuprng sreuutng another of the parties
concerned. He great work upon which nearly
twenty millions of dollars have been expended in great
degree useless and would invite those most deeply in
teresed to ntsrpose and il possible prevent its entire
destruction The duty of the bondhoies and preferred
creditors generally is of immediate action great
and costly work is in ruins How shall it be revived
and thus rendered useful to the State and profitable
all Interested We ask with emphasis, what action will
the preferred creditors take, and when eM they act
BOND HOLDER
From the New York ueraLd