Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1860-02-17
Chesapeake and Ohio Canal.
For the MONTGOMERY County Sentinel

chesapeake and OHIO Canal, and the ut
ter loss and hopelessness of the States
investment in that work. 1t was there
seen that the State had sunk $l5, 600, 600
in this government corporation. 1t is
known that, after having spent this large
sum, the canal was still unfinished and
short of Cumberland, the point of desti-
nation, by about fifty miles. 1t is also
known, that, at this point, the canal was
abandoned to its fate, the State refusing
to make any further appropriations to it.
After remaining in this condition for
several years, the Legislature concluded
to waive, for thirty-fve years, the prior
liens and mortgages of the State in favor
of parties who would come in and COM
plete the canal to Cumberland, and au-
thorized the company to issue bonds to
the amount of $1,7Q0, 600, secured by
mortgage upon the net resources only of
! the canal--the State, in the mean time,
retaining the control and management of
/ the canal. These parties accepted this
Offer and, in good faith, complied with
their part of the contract, completing the
canal TO Cumberland in the autumn of
1919, the State having guaranteed them,
in the first instance, an amount of tom
mage sufficient TO pay expenses, and to
pay the interest upon the 81, zoo, 900.
1t was shown, last week, that instead of
paying the interest upon this $780,
600, according to the guaranteed amount
of tonnage FIRST stipulated, the State, by
its management, had actually, in the
brief space Of ten years, permitted this
debt to double itself
Feeling keenly the wrong and injus-
tico done them, by Withholding their in
tcrest for SO long a time, and seeing the
rapid accumulation of debt against them,
threatening very soon to eugulf their
whole claim in irremediable ruin and
loss, the bond-holders and other creditors
of the canal respectfully ask the Legisla-
ture to abandon, in favor of its suffering
creditors. the control and management
Of work which brings the State no
good, and entails such heavy loss and
ruin upon so many honest and unfortu-
nate creditors The creditors think aud
believe, as was stated last week, that
by better and more economical manage
ment timely applied, something still
might be saved from this unparalleled
vortex of ruin If suffered TO 60 on and
accumulate, as the debt has done for the
last ten years, utter loss and ruin to its
creditors, to the State, and to the canal
itself must be the inevitable result But
can or will the work be better or more
economically managed in the hands Of its
creditors, than it now Is under State con
troll? | enphatiealy answer-yos In
the first place, the present system Of bor-
rowing money at 6 or 7 per cent and
paying bonus of % per cent. in addi-
ton for the loan, is ruinous to any iudi.
vidual or company who attempts it. III
the second place, the present system o
; granting coal permits ahead, to pay these
loans obtained at such ruinous and usu.
rious rates of interest, depriyes the com.
pany of current means, and keeps it de.
pendent upon those sbylocks who arc
! sapping from it its very life blood and
in the third place, the salaries Of its off.
GERS are enormously high and 9ispropor-
toned to the means and exigencies of the
company. How, then, can these evils be
remedied ? Simply, instead of borrow.
ing money at such ruinous and enormous
rates as the company is now paying, let
the creditors tar themselves for the means
to complete Dams No. and 5, and to
put the canal in good nayigable order. A
small tax Of or 6 per cent will raise a
sum amply sufficient for this purpose.
Scll-intercst and self preservation will
] at once point out this as the true course
| for the creditors tOpursue, the moment
you satisfy them that their money will be
faithfully, wisely, and economically ap-
piled. Under present circumstances, it
cannot be expected of them to advance
another dollar.
IN the next place, the creditors, could
they control the work, would graduate
= the salaries of its officers TO the income
S Of the company, and the exigcncics OF
the canal. Prior to the passage Of the
law Of 1874, for tue completion Of the
canal to Cumberland, and during the
b suspension of the work, the salary Of
+ the President was reduced to 81 900
during active operations upon the canal,
under that law, and up to its completion
the salary was 81 600 Since then,
and since the canal has been running
deeper and deeper in debt every year,
the salary Of the President has been adj
yancod to 81, 800. / assert that the
whole duties Of the President Of this
impoverished company can be performed,
and well performed for s 800 Two thou
sand dollars, which ought to 90 to the
honest and suffering creditors Of the com
pany, are thus wasted as a gratuity upon
it, President. The Offices Of Clerk and
Treasurer, as in many other companies,
in this and other States, might and ought
to be consolidated into one Office, with a
saving Of another 81 600 to the compa-
ny. Here then, with these two items
above, is saving and equivalent to n
capital Of so, 900 per annum to tho
company. Other items Of economy might
be pointed out, but enough is shown to
establish the assertion, that in the hands
Of its creditors, the Chesapeake and Ohio
caual could be better and more econOmi-
cally managed. lis for the members Of
the Legislature to say whether this noble
work shall 90 on with this suicidal policy,
running deeper and deeper in debt, car
rying ruin and bad faith (almost amount
ing to repudiation) in its traiu-or wheth-
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