Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1875-08-27

The above caption has become a set phrase
with certain politicians in Maryland, who, by
their outcry and insinuations, have tried to
impress upon the public mind there was some
mysterious and fraudulent management of this
great public work-the Chesapeake and Ohio
Canal. While this great hue and cry has been
raised against it, not one has yet dared to
touch upon the facts in relation to the revenue
and present condition of this great navigabe
highway, which opens up the way OF COM
merce from the mountains of Allegany to tide
water in Georgetown, and which can set al
defiance all successful competition for the coal
trade and the agricultural products of the fer
tile lands through which it passes for about
two hundred miles.
Let us examine into the facts connected with
this work that the people may judge for them.
selves more especially the citizens of Mont
goinery, Frederick, Washington and Alegany
counties, who are so deeply interested in the
success and prosperity of the Canal. To con-
vince the public of the truth of what is said
in regard TO tie Canal the data given will be
taken from sources which no man dare con-
tiadict. In April 1870, in the Court of APP
peals OF Maryland, the case Of the Common
wealth of Virginia versus the State of Mary
land and the Chesapeake and Ohio Canal was
decided, and Judge Miller, who delivered the
opinion of the Court, used the following lam
guage:
'After persistent and successful struggle
OF more than forty years with many disasters
and innumerable difficulties, the Chesapeake
and Ohio Canal Company, has, at last, re-
ceived from its tolls and revenues surplus
ever and above its ordinary expenses, applica-
bile TO the payment of its preferred or lien
creditors. Under the proceedings in this cause
part Of this surplus has been paid in Court
and the immediate question now TO be decided
is to whom shall this fund be paid Inas-
much, however, as there is Il confident and
apparently well-founded expectation that there
will hereafter be large and increasing reve-
nues annually accruing, to be applied to the
same purpose, all parties in interest desire AN
adjudication by this Court OF the priorities Of
the several classes of creditors Of the Canal
Company, not only to the fund now to be dis
tfibuted, but such future earnings"
After discussing the legal questions in the
case he sums up the whole as follows:
This fund and all like revenues hereafter
accrning must, therefore, be applied as follows;
First. All the unpaid coupons on the $780,
900 of repair bonds, not paid and held by the
State of Virginia us guarantor, must be first
paid in the order of their seniority. then the
principal of said bonds with interest thereon
from the time they matured until paid, then
the coupons on these bonds that have been
paid by Virginia as guarautor.
Second. After the principal and interest OF
the repair bonds have been paid as above stated,
the revenues must then be applied, first, to
payment of overdue ana unpaid coupons on
all the preferred construction bonds in the or
der of seniority; aud in this distribution
those paid and held by Virginia, as guarantor
OF $500, coo of said bonds, are to share in pay
ment pdri pdsSu with those unpaid and held
by other parties, but nothing in such distribu
ton is to he paid 10 that State as assignee OF
any claim of Selden, Withers & Co. After
the overdue interest has been thus liquidated
the accruing interest on these bonds must be.
paid and then So, 900 per year to the holders
OF the bonds issued TO the creditors Of the Po-
tonac Company, and then the sinking fund
for The payment of the principal Of the pre-
ferred construction bonds must be raised APP
piled and paid in the mode prescribed by the
9Th section of the Act of 1874, CHI. 2sl.
Third After the above stated payments
shall have been made, the entire surplus reve-
nues of the company must be applied in dis
charge OF tue pfluclpal ana interest al tue liens
and claims of the State of Maryland"
This, then was the financial condition of the
Canal in 1869, when this suit was commenced.
The great source of revenue 10 the Canal is
well known TO arise from the coal trade In
1869 the Canal carried 652, l5l tons, in 1870
it carried Goa, 1877, and since that time, even
in the depressed condition of affairs, its annual
transportation Of coal will average over 500,
600 tons.
The gross revenues for the year 1873 were
SS07, so, the expenses of every kind were
S220, 200 81, leaving clear proceeds for the
year, to be applied to the payment of its debts,
the sum of $2s7, 459 90. For the year 1874
the gross receipts were S5l7, 4l2 %, the ex-
penses including heavy ordinary and extraor-
binary repairs amounted to S227, 204 .6s, leav-
ing clear balance of $500, 2O7. SO.
At last the doubtful problem is solved, and
the people Of Maryland can look forward to
the time when this great enterprise will begin
to repay them. IL nothing unforeseen should
occur in six years the State will derive reve-
nue. from the Canal, and with a continuation
Of its present trade ana prosperity in ten years
time the revenues from the Canal will support