Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1859-02-04
State Affaire.
AN ADDRESS TO THE COMMITS
SIONERS OF PUBLIC WORKS.

to you the high and important trust OF
representing the interests Of the State Of
Maryland in our several public works.
And whatever power the State has, by
virtue Of her stock in these works, III
electing President, Directors, &c is, for
the time being, delegated to you; whilst
the Constitution, in prescribing the du-
ties of your office, requires of you, a
general supervision over their manage
ment
The State has invested large sums of
money in the Chesapeake and Ohio Ca
nal, which, with interest added to her
original investment, now amount to more
than thirteen millions of dollars. In
fact, it may be said, she owns the Canal,
and has entire control over It, This i'm
portant control has been delegated to
you. AS the agents of the State, elect
ed to look after and watch over her inte-
rest in the Canal Company, you have
full power to appoint whom you please,
as the President and Directors, TO man
age its affairs And as you are response
BILE to the people for the manner in which
you discharge this duty, we make no
apology for addressing you on that sub
ject.
At your annual meeting in March last,
you removed all the old officers of the
Company, elected new President, and
made an entire change in the Board of
Directors
1t is not our purpose to. reflect upon
the private characters of your appointees ;
they are gentlemen of high standing, and
said TO be honorable men. But, as they
have assumed the management Of the
Chesapeake and Ohio Canal, a great
work owned by the State of Maryland,
any citizen Of the State has the right to
investigate, privately or publicly, the
capacity ana skill with which its affairs
are managed; and if he thinks you have
elected a President totally incompetent
to discharge the duties of his Office, has
the right to tell you so.
We ask you to examine into the man
agement Of the Canal since March last,
to see if your President conducts its af.
fairs with that ability usually required Of
men holding similar positions, by stock
holders in like works Of improvement
or are its affairs managed il such manner
as you would require Of President
were you the individual owners of. stock
in that Company?
In August last, the friends Of the Ca.
nal were reioiced at a report then herald.
ed forth, that your President had nego-
tiated loan Of 100000, to rebuild
dams Nos 4 and 5, but these joyful emo
tons were soon followed by surprise and
disappointment on the startling disclos-
ure Of the terms on which the loan wai
effected. 1t was asccrtaiucd that tho
1 Canal Company had made an arrange.
mcnt with certain gentlemen of New
York, largely interested in coal minc.
near Cumberland, by which these gen.
tlcmen agreed to lend the Canal Compa.
ny 500, 600, at discount Of S25, 900,
and six per cent. interest, payable il
tolls during the year 1859, or afterwards
at the option Of the lenders. The Cana
Company agreed to issue certificates Of
toll permits, amounting to 800, 600,
bearing six per cent interest, for which
these coal men stipulated to give 49,
600 This discount Of S25 900 and
the $4,000 interest, Con the 800, 900, )
shows the enormous sum Of S31 600,
which the Canal Company is actually
paying for the loan Of SIS, 900, for one
year; equal to interest Of All per cent.
If this magnificent specimen Of fnan-
cicrng il fair criterion Of the tact and
ability Of the gentlemen to whom you
: cave entrusted the dcstinics Of the Canal
:. Company: then we think you have not
= shewn that caution and Judgment, in
making you: appointments, the people
had a RIGHT to expect. Az we venture
to assert there is not lock -keepcr Oh the
line Of the Canal, who could not have
negotiated the loan on better terms, at q
time when money was rs cheap as during
the past year Doubtless, you may be
told that the Canal Company pay to the
contractors building dams Nos. 4 and s.
seyenty-two per cent. Of their gross esti-
mates in these "toll permits" and that
the contractors, and not the Canal Com
pany, bear this enormous shave; but the
facts viii show such conclusion entirely
delusiye The contracts to rebuild these
dams were made by Mr. Maulsby, TIC
former President; thcy were to be Of
stone, and the price to be paid by bin,
was $4.93 per perch for dam No j. aud
! S5.0 per perch for No. 8; but your
appointce modified these contracts, by
increasing the price Of the former to
S5.93, and the latter to SG75, per
perch, and adding on to the amounts Of
every monthly estimate, twenty-five per
cent additional for tho purpose Of shift
ing the loss Of this heavy shave on to
the Canal Company; besides agreeing to
give one contractor SIS, 600, and tho
other Sl2, GOO, extra pay, making over
ton per cent. more As it was part Of
the agreement between the Canal Com
pany and the parties furnishing tho mo-
noy, that these "toll permits" were to
be paid to the contractors, who should
sell them 10 the lenders, at scyonty.Gvc
cents on the dollar, trusting thereby 10
oyade the usury laws Of the State.
Your appOinteo, as an excuse for this
great sacrifice, may tell you that owing
to the embarrassed credit Of the Canal
Company, it was impossible to borrow
money on better terms IN reply, Vc
will oriv atuoraf that Iutsu0 fIr vrtt