Evening star. [volume] (Washington, D.C.) 1854-1972, 1870-02-18
Chesapeake and Ohio Canal Company.

The stockholders of the Chesapeake and Ohio
Canal Company met at Annapolis yesterday. in
the Adjutant Generals Ofice, in the State Cap
itol, with closed doors, and Governor Bowie in
posed of the Governor Of the State, the State
Treasurer and Comptroller, did not meet as a
board, but were present at the stockholders
meeting. The federal stock, 1t 10 understood,
was not separately represented. General Brad
ley T. johnson and Mr.. j. p. Poe were present.
representing the Virginia interest and ex- Mayor
and Georgetown interests Among others also
| present were Messrs. w. W. Cofcoran. "a a
private stakeholder, and Nelson Poe, one of the
| directors.
The report of j. HI. Gordon, President of the
company, was read and adopted.
In it he replies to the resolution of the board
Of the 18th Of January last. calling for the "pro-
ceedings Of the Board of President and Directors
relative to the appropriations by them Of the
net tolls and revenues to the payment of the
preferred debt of the company, for q statement
Of the amount paid by them under such pro-
ceedings, and also their reasons for declining to
pay out such net tolls and revenues He sub
mits large number OF papers in reference to
the matter and says it was the desire of the
board to resume, at the earliest moment, the
payment Of the interest upon Its bonded debt,
which had, for many years, been suffered to ac-
eumulate; They found themselves embarrassed,
the bondholders touching the priorities Of the
bonds by bill Of complaint filled in one of the
courts OF Baltimore city by the State OF Virginia,
distribution which was entirely satisfactory
TO everybody until the meeting OF the
board in December last, when an agree
ment was laid before them, which fur
nished what was believed to be basis of
distribution, assented to by all the principal
bondholde-s who had taken part IN the contro-
versy. Recognizing the equity and equality of
the mode of distribution provided for by this
agreement, and 1t being considered highly de-
srable that the 800, 900 then in the cOmpany's
possession should be distributed without delay,
the resolutions of the 9th Of December, 1859,
were passed. In the meantime, MI. John 5.
Cuttings and the Chesapeake Bank applied for
and obtained from the Circuit Court OF Balti-
more city an injunction to prevent the further
payment Of the moneys appropriated by the
resolution of the Board, upon the alleged
ground that such appropriation was not in strict
conformity with the legal and equitable priori-
ties Of the bOndhOlders. Under these circum-
stances, the company employed counsel, Messrs.
Marshall and Carter, and have acted since by
the advice contained in their opinion.
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, winch will
probably lead to replication and proceedings in
other quarters Ii seems that in December,
company, consisting Of Messrs j. III. Gordon, of
Allegany, Nelson Poe, of Baltimore, William
Thompson, OF R., of Montgomery, and ID. s.
Biser, of Frederick, submitted a report to the
Board of Directors rejecting upon the previous
management of the canal-in fact, charging a
misuse OF funds to a considerable amount. This
Directors to the stockholders meeting, and laws
over till April 18th. The report bears date An
napolis, December 10, 1863. The committee
conducted their investigations in Cumberland,
but they say Mr.. Spates refused to meet them
or couDtenance their proceedings. The first
charge is in connection with about $500, al
legged to have been furnished Spates by Isaac
X Mans, superintendent of the Georgetown
division, upon the request of Spates, to pur-
chase an ice-breakeI, and for which sum it
IS alleged Spates forwarded receipt dated
Cumberland. December Sd, 1867, signed by
Thomas Sheridan, '.fOr building, ironing, and
painting one ice-breaker for the Georgetown
division" This receipt, it is alleged, Sheridan
rePudiates and pronOunces ga fabrication"
The committee say ''the ice-breaker which was
thus attributed to Mr.. Sheridan had been built
by the superintendent of the Cumberland dvi-
sion and paid for by that officer, and the pay
ment allowed to him in his accounts they
add that the effect Of the transaction was to
ice-breaker. Another item in controversy is
S4OO out Of an amount of 81 1858, for work
done and ordinary expenses in November, 1851,
on the Antietam division OF John Shay, and
81 COO for a scOw, lumber, and paddle frames,
expended at Cumberland. Other small sums
are mentioned, in which, ranging from two hun
items are specified in several cases. One
case is cited in which the committee say
that ga question being raised whether MIR.
sident, had received the money represented
by two receipts, 1T bees me important to as
certain by whose agency they were fabricated.
ton of them that they were in the handwriting
Of a young man of excellent character, and an
expert penman, employed in the Office OF the
clerk Of Allegheny county as recorder. Two
Of your committee sought an interview with
Lin. and exhibited to him the receipts inform
ing him at the same time of the fraudulent pur-
II se they had been made to serve. He at once
admitted that they were in his handwriting, and
stated without any reserve his whole agency in
their preparation. He had copied them at the
request of Mr.. Alfred Spates upon the printed
tillheads of II. p. Lasker & Co., furnished to
him by Mr.. Alfred Spates. The body of the
bills and the signatures were all copied by him
by Mr.. Alfred Spates.
A number Of other so-called "fabricated''
vouchers are instanced for sums of { 100 to $500,
in connection with spurious vouchers said to
have come from division superintendents Mans,
Shay and Thomas, though the report adds that
II Is due to these gentlemen to say that nothing
to call in question their integrity and good faith
in the transactions referred. There are charges
In connection with $4,000 In March, 1858, for
condemnation of land in Cumberland for basin.
Several other operations are mentioned, and the
report concludes with a declaration from the
committee as follows: although your COM
mittee, from the direct and positive character
OF the evidence upon which the statements of
the report rest, would be tainted in proceed
ing, without further delay, to take decided and
Peremptory steps to report the violated rights of
the company, yet, as Mr.. Spates has in a COM
munication to the president and directors, de-
sired that he may be furnished with a copy of
heartily welcome any explanation which would
remove and palliate the painful impression
which these transactions have made upon their
mind they recommend that a copy of this re-
port be furnished TO Mr.. Spates, and that he be
informed that the board will proceed to act
upon IL at their next monthly meeting, on Wed
nesday, 18th January next, at Annapolis, Md.
The Baltimore Sun from which we take these
details, says -" We are in possession of full
copy OF the report of the committee of the canal
board in reference to Mr.. Spates, as above re-
ferred to, and also of dispatch from that GEN
tleman asserting that the report Is made in
malice, and that he can show it TO be so.'
On motion of Col. Berret, of Washington ID.
z, resolution was adopted requesting the
board OF directors to fund all the overdue cou-
Pons upon the preferred debt of the company.
these coupons, 1T is understood, amount to
about two millions of dollars. The meeting was
IN session for over two hours, and finally adj
gouIned till April 18th. The election for presi-
dent and directors of the company will take
place in June, and Is looked forward to with
consids rable interest A resolution adopted by
the president and directors Feb. I1th-that
until otherwise ordered the tolls on coal and
coke transported on the canal be at the rate of
one quarter OF a cent per ton per mile-yester-
uay received the sanction of the stockholders.
TPERs0Ns INTENDING TO SEE THE
SR, oShAND COMIC PANORAMA OF THE
thia mvrA Al Of THE CAPITAL. and other fine
n