Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1870-02-18
,;T,rEMENT OF TIE PRESIDENT AND DIKECTOl
OFFICE OF THE CuE3APEAKE
AND OHIO CANAL COMPANY,


70 the Stockholders Of M" thc""pr"h" ""d
Ohio Etmul Company:
GrnfirD.fn In 0hcGiruca tn your Restitution
vi the lg:h al January last, can! Tor The
"pror,dinr oi the 'oar,! ot President and III
rrctnr4 relative to the aplropiIatn'' ~ them
of the net tolls aud revenues 10 III" Payment
| oI the preferred debt Of the Company. Tor 4
| statement vi the amount pad by them under
| such proceedings, and AIS" lIrr rclanns for DE-.
Ginning to pay out :ilcli net tolls ahd revenues,
| have the hu,!1r Ia lay tH.iDro yut The follow
| ing papers:
| Here ioliuw5a Ii.i vi laprra RELATING to
| the matter.
The al0regniuE parGlS Will I,,' ipund t. COD
| t,in al the information called lul ~ ynnr req
| oIuIon.
That they may the more readily be understood
| | am instructed hy the Board Ii accompany
| them with a word ui "yIlann'ioH.
ltpou the accession ri lh' administration oil
tho Affairs ut the Company ii WAS the desire ot
the Board 10 resume, at the r:;iiIc.t mumCnt,
the payment 81 the int r4t upon It's bnhurd
debt. which had lnr - macy year, hr"n *ui
Tered Ia accumulate.
They found Themselves. rnll1a.:i':'t, however,
IN this desire, by controversies amongst the
boudhulders touching he lirl)rltIeS OF the bonds
by 4 bill Of complaint filled in one of the courts,
Of Baltimore city by the State of Virginia,
which made it impossible for them to order any
distribution which wa entirely il,laetory to
everybody until the meeting ul the Board in
December last, when III agreement (being pa.
ucr No. +, herewith Submilrd) was laid be-
lore them which furnished what was believed
to he basis OF distribution, a%senttd 10 by al!
the principal hondhodars who had taken part
in the controversy, and which had the merit,
considered by the Board to be conclusive, o!
being not only greatly advantageous |" the
State but also in conformity with the prrc:
dents heretofore set by the Company by pay
Ing coupons on preferred and upon bonds with
out regard to priority and without OBJ lection
until the filing Of the bill Of complaint by the
State of Virginia already referred to.
Recognizing the equity and equality OF The
mode of distribution provided for by this agree.
ment, and it being considered highly desirable
that the SlG0, 900 then in the Company's pos
session should be distributed without delay, the
resolutions of the 9th OF December, 1862 were
passed.
rhcs, resolutions contemplated aad dirCc
ted an immediate payment to all who were IN
cluiel in the classes designated to be paid. ii
they had been allowed to b. carried out, q
quarter of Il million Of dollars OF the debt OF
the Company would have been paid and cancel
led by the appropriation OF the $lhO,OOD set
apart for them, and thus The State Of Mary
land, as the holder Of the second lien upon the
revenues OF the Company, would have been
benefited to the extent of about $4,000 be
cause by this arrangement the principal OF the
coupons was only to be paid, without interest.
The account OF the State OF Virgin. tor the
period covered by the resolutions having been
already settled and adjusted, her counsel,
General Johnson, on the l0th of December de-
manled payment OF the sum thus found to be
due, amounting to ($5S, 435) Gfty-eight shousard
four hundred and lhlrty-livc dollars, and it
was accordingly paid to him.
Subsequently, in consequence Ut the removal
then actually taking place Of the looks, records
and other papers OF the Company from Wash
inetOn 10 Annapolis, the committee, 10y whom
under the resolutions, the sum appropriated
to the bondholdcrs WAS to be dsbnrscd, find
inr it inconvcnien! II not lmpractlcabe to com
pete, without few days delay, the arrange
mcnt for the payment Of the coupons in BaI.i
more, where by the terms OF the bonds they
were payable gave notice that they would be
paid on presentation ut the Office of Mra>rs.
Alexander Brown & Sons OH and after the "a
of January, 1870, instead at immediately, AZ
the resolutions provided.
In the meantime, Mr.. John s. Cuttings and
the Chesapeake Bank. taking advantage OF this
DELAY, applied for and obtained from the Cir
cult Court OF Baltimore city an injunction TO
prevent the further payment Of the moneys Az
propriated by the resolution OF The Board, mp
on the alleged ground that such appropriation
was not 10 strict conformity with the legal and
equitable priorites OF the bondhoidrfs.
Under these circumstances the Company en-