The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1877-11-06


for that purpose, on a pledge by the COM
psnv, by resolution, Of the tolls and reXe-
nues prior to the first mortgage. Inls
n)edge was without the consent OF the first
mortgage bondholders, and became the
cause Of much contention.
With this money the canal was finished IN
| 1851 to Cumberland, twenty miles from the
coal-felds, beyond which point it has never
been extended. From 1851 to 1857 1t was
so mismanagcd that it failed to pay the in
terest even on its bonded debt; anu Flr:
cipia paid out on her guarantee the sum OF
S305. 900 between those dates. Maryland
owns tiyc-eighths OF the stock. and controls
and governs the canal at her will and pleas.
IRE. It has been hospital for veteran
statesmen and the prey OF enterprising poll
ticians. Between 1851 and 1867 1t had e'ght
presidents, and the policy and management
OF the canal were changed with every new
administration. The consequence was the
canal was used as the instrument OF party,
and became more and more involved every
year.
In 1867 its debt prior TO that OF Maryland
was 81 300, 900, with sixteen years overdue
interest, amounting to nearly as much more,
which was accumulating OF the rate OF
! Sl14,000 per annum. The condition OF the
canal was hopeless.
On March IA, 1870, three years after we
| had undertaken the work OF reviving the
canal, Governor Bowie, in a special mes
sage to tue Legislature Of Maryland, says
| that the State, :" for more than thirty gears,
| has had the exclusive management, amt has
absolutely shaped and controlled tie policy
| of the cOmpany-Gdn,iniSteri its affairs
| TN officers chosen Jy her; changing those
officers ,cih every change in her politics ;
Tsmouing one gear officials auho had just'be-
Gun to be familiar aoith the duties and re-
SponsDiities of their position, and, aoih.
out fired and stable policy, aoithout a
co,.ps of trained and experienced officers,
1cithout jadicious and systematic economy,
pdrulyzed by perpetual changes IN ats dd-
nafnistrdtion, the UiCtisB Of abuses, mus
management, and tariSh expenditures ats
! po,cer and influence constantly used in the
seru,ce Of the political organization, tohach
for the time appointed its officers and rega-
lated its direction; governed 6y erer:1tacla.
ating bodies, ,oho had no pecun'ary interest
in the increase of its reuenue and the red,tc"
ton of its expenses, 1t arould haze been an
deed Jut little short Of the miraculous if it
had prospered." ........ y..
This was II picture OF its past career and
the prognostication OF its future unless a
radical change was made in its manage
ment.
Virginia was guarsntor for S500,000 Of
the canal bonds, rs we have seen; had paid
out OF her treasury S3O5,000 as interest on
these bonds. and was bound for S150,0O0 OF
overdue interest on them, which she was
unable to pay. She was thus involved, on
account OF her guaranty, to the amount OF
1866, 900. Besides this, she held claims
against the company to the amount OF
sos, 900, which had been transferred to her
by Selden, Withers & Co., with large arrears
OF interest on them.
Under these circumstances meeting OF
bondhoIders, held in Baltimore in 1867, de-
termined to commence proceedings to re-
form the administration and policy OF the
canal company il Virginia could be got to
take the lead. Accordingly a resolution
was passed February rs, 1867, by the Gene
raj Assembly Of Virginia, "authorizing and
directing the Board OF Public Works to
adopt such measures as in their. Judgment
may be necessary and advisable to realize
the preferred liens OF the State, &c, and
for that purpose to contract with counsel
for the enforcement Of said liens in concert
with other holders Of similar liens.", .,r
The Board" in their judgment deemed It
necessary and ddvisabie" to contract with
counsel to pursue the remedies Of the State
in the courts, and to recover Judgment for
such claims rs could be proved and recoy-
cred; and the Board, knowing from the eN-
perience OF the preceding sixteen years that
mere legal proceedings against the company
would be vain and frutless unless radical
change in the policy OF the company was
effected, further "deemed 1T necessary ana
advisable" to contract with counsel that
they should secure possession OF the canal
and its tolls and revenues and appropriate
them to the payment Of its debts and La
bilties. ..,.....,...I! .-. ...".h
The Board knew, as every one now knows,
that to protect the State two separate lines
OF action were necessary-legal proceed
ings to have judgments procured in behalf
OF the State, and proceedings before the
Government OF Maryland to induce it to
change that policy which Governor Bowie
so scathingly denounces as having made tue
canal for thirty years the "victim OF abuses,
mismanagement, and lavish expenditures"
. Therefore the contracts were made fixing
fees to counsel at twenty per cent. on the
estimated interest OF the State In the canal,
which twenty per cent. was to be paid only
out OF such debts or claims as were re-
covered. Ii what we recovered was worth
less, we got nothing. All expenses were to
be paid by us, and the State to be held harm
less in any event. These claims were for
1906, 900 on account OF coupons for the
guaranteed bonds paid by the State, and
s20S, 900 assigned by Selden, Withers Il Go.
OF these, all the coupons and other eyi-
dences OF debt belonging to the State had
been lost, stolen, or; destroyed on April 2,
1865, except S13,500 Of coupon bonds, and
$4,000 certificates OF debt from Selden,
Withers g. Co., and a certificate for $50, 400
issued to the State in 1853 for coupons she
had paid. The $4,000 Selden-Withers
certificate was, in the course OF the litiga-
ton, decided to be valueleSs; so that the
only proof the State could command OF pay
ment OF S30j,000 interest was certificate
OF $50, 400. -.s... =.
Now. in 1867, it was largely believed by
the profession that coupons, being payable
to bearer and passing by delivery like bank
notes, could not be recovered on when lost
or stolen. 1t was generally supposed THAT
the bona fde holder OF such coupons could
recover them, even after they had been
stolen, and that the owner FROM whom they
had thus been taken had 10 remedy. -
In other words, in 1867 the very preva-
lent opinion was that the State could in no
event recover payment OF the S269,O0O
which she had paid in redeeming these cou-
pons, because she could not produce them.
The question was not settled until the deci-
sion of the Supreme Court Of Virginia in
Arents us. Com, Is Graft, 754. April tcrul,
1S6s-nore than year after our proceed
ing commenced.
Therefore, if the Board OF Public Works
had agreed to transfer to US the whole claim
for $500, on account Of coupons paid,
they would have given us what was value
I fnH tn hu