Daily national Republican. (Washington City [D.C.]) 1870-1872, 1870-02-19

{ .NhAoAfEAkh AND OHIO OANAL COhpANN
INJECTING or TuE sTooKuotDRRs- REPoRT
! OF THE PREsIDSNT- CHARGES or MISUSE OF
{ rHB FUNDS, &c.-The stockholders Of the
. Chesapeake and Ohio Canal Company met
: at Annapolis on Thursday, in tho AdJutaut
!, Generals Once, In the State Capitol, with
8 closed doors, aud Governor Bowie In the
' chair. The Board OF Public Works, com
Q posed OF the Governor Of the State, the State
T Treasurer and Comptroller, did not meet az
a board, but wero present at the stockhoid.
. ers' meeting. The federal stock, It Is un-
, dcrstood, was not separately represented.
General Bradley T. johnson and Mr.. J. p.
roe were present, representing the Virginia
Interest, and eI-Mayor Berret, Of thIs city,
: TO represent the Washington aud George.
: town interests. Among others also present
were MessrB, W. W. Corcoran, as a private
s,ttoeEholder, and Nelson Poe, one Of tie
The report Of ], II. Gordon, presidept Of
the company, was read and adopted.
In II he replies 70 the resolutions OF the
board ofthe 10th OF January last, calling for
the proceedings Of the board Of president
and directors" relative TO the appropriations
BY them OF the net tolls and revenues TO the
payment OF tho preferred debt OF the com
Pnny, for statement Of the amount paid By
them under such proceedings, and also their
reasons for declining TO pay out such net
tolls and revenues. He submits 4 laFre
number Of papers 10 rcfeteuce to the matter.
and says It was the desire Of the board 10
resume at the earliest moment the payment
Of the interest upon its bonded debt, which
had for many years been suffered to Rccu-
Emulate. They found themselves eulbar-
rassed, however, in this desire by contro
versles among the bondholders touching the
priorities OF the bonds by bill Of complaint
tied In one OF the courts Of Baltimore city
by the State Of Virginia, which made II i'm
possible for thom TO order any distribution
which was entirely ratlbfactory 10 overy-
body Until the meeting or the board in De-
cembef last, when an agreement was laid
before them, which furnished what was be-
lleyed 10 be basis Of distribution, nasented
TO by all the principal bondholders who had
taken part In the controversy. Recognizing
the equity and equality Of the mode Of dis
tribution provided for by this agreement,
and Il being considered highly desirable that
the 100000 then In the oompauy's posses-
sion should be distributed without DELAY.
the resolutions OF the 9th Of December, 1854,
were passed. In the meautIme Mr.. John 8.
Cuttings aud the Chesapeake Bank applied
for and obtained from the Clrcuit Court of
Baltimore city an Injunction 70 prevent the
further payment Of the moneys Appropriated
BY the resolution OF the board, upon the al
legged ground that such appropriation was
not In strict conformity with the legal and
| equitable priorities Of the bondholdora.
Under these circumstances the company en-
ployed counsel, Mcssrs. Marshall and Garter,
and have acted since by the advice contained
| In their opinion. "rI"
A report was announced, making grave
charges duplicating Hon. Alfred spates, the
| former president Of the canal company, now
a State senator from Allegany county, which
will probably lead to replication and pro.
eeedlngs IN other quarters, 1t seems that
In December, 1860, the committee on accounts
| OF the canal company, consisting OF Messrs, !
]. II. Gordon, Of Allegany, Nelson Poe, Of |
Baltimore, VIM. Thompson OF r., Of Mont |
gomery, and p. 8. Blser, Of Frederick, sub |
mitted a report to the board OF directors re. |
| fecting upon the previous management Of |
the canals In fact, charging q misuse OF |
funds TO considerable amount. This re.
port was yesterday submitted by tho board
Of directors TO the stoekholders' meeting,
and lays over till April 18th. The report
bears date Annapolis, December IS, 1869,
The committee conducted their inyestlra-
lions In Cumberland, but they say Mr..
Spates refused TO meet them or countcnance
their proccedlngs. The first charge is in
connection with about $500, alleged to have
been furnished spates by Isaac Il. Mans,
superintendent Of the Georgetown division,
upon the request Of Bpates, to purchase an
lce-breaker, and for which sum Il Is alleged
Spatee forwarded a receipt dated Cumber-
land, December 8, 1887, signed by Thomas
Sheridan, for building, ironing, and paint
Ing one iee,breaker for the Georgetown diyi-
sion.n This receipt, II 10 alleged, Sheridan
repudlate and pronounces "a fabrication"
The committee say "the leo breaker which
was thus attributed to Mr.. Sheridan had
been built by the superintendent Of the Cum
berland division and paid for by that officer,
and the payment allowed to him In bis &C.
counts" They add tnat the eIiect OF the
lFa0aaCtlnN ha nv To- |
twice for the same ice-breaker. Another
Item In controversy 10 $3.50 out OF an amount
Of 81 ,463.S3, for work done and ordinary
expenses In November, 1867, on the Ante
tam division Of John Shay, and q, 600 for
scow, lumber, and paddle frames, expended
at Cumberland. Other small surns are
mentioned, In which, ranging frou two hun
dred 70 two or three thousand dollars, and
the Items are specified In several cases. One
case IL cited In which the committee saw
that ga question being raised whether Mr..
George W. spates or his namesako, the Iresl-
dent, had received the money represented by
two receipts, II became important to ascef-
tain by whose agency they were fabricated.
The report adds II was found upon exami. i
nation OF them that they were in tho hand
Wrting OF young man Of excellent char
acter, and an expert penman, employed In
the Office Of the clerk OF Alisgany county
as recorder. Two OF your committee
sought an interview with him, and exhibited
TO him the receipts, Informing him at the
same time Of the fraudulent purpose they
bad been made TO serve. He At once admit
ted that they were In his handwriting, and
stated without any reserve hia whole agency
In their preparation. He had coried them |
at the request Of Mr.. Alfred spates upon the
printed blllheads Of II. p. Lasker 4 Co.,
furnished to him by Mr.. Alfred epates. Tho
body OF the bills and the signatures were ali
CODi0d Mt ha g.. 1
manuscripts furnished by Mr.. Alfred spates.
number Of other so-called 'tfabdcatedO
vouchers are inBtanced for sums Of S1OO 10 |
$500, In connection with spurious vouchers
said to have come from division superinten-
dents Mans, shay and Thomas, though the
report adds that II is due to these gentlemen
to say that nothing has occurred in the
course OF this investigation to call ia ques-
tion their integrity and good faith In the
transactions referred. There arc charged In
connection with $4,000 in March, 1858, for
condemnation Of land in Cumberland for |
basin. Several other operations are men.
tioned, and the report concludes with dec. |
laratiou from the committee as follows
although your committee, from the direct
and positive character OF the evidence upon
which tho statements OF the report rest |
would BIO warranted In proceeding, without
further delay, TO take decided and peremp.
tory steps to report the violated rights Of the
SOihPhnyy JctJ hh MI pphteb mas, IN q COM /
munieation TO the president and directors,
desired that he may be furnished with a
copy OF their report, and as your committee
would heartily welcome any explanation
which would remove and paillato the palm
full Impression which these transactions have ,
made upon their minds, they recommend
that a copy OF this report be furnished 10
Mr.. spates, and that he be Informed that
The board will proceed to act upon Il at their 4
next monthly meeting, on Wednesday, 18th
January next, at Annapolis, Nd. !
The Baltimore Sun, from which we take
those details, saysi eve are In possession
of full copy OF the report Of the committee
of the canal board In reference TO Mr. spates, a
ls above referred TO, and also Of dispatch
from that gentleman asserting that the re- c
port Is made in malice, and that he can show
Il to be So"
On motion Of Colonel Berrst, Of Washing
ION, d. o., resolution was adopted request
ng the board Of directors 10 fund ali the