Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1878-02-02
ChesaDeakc a. Ohio Canal.

Inc Annapolis correspondents VI INC DAM
more American say:
The bill authorizing the Chciapeake and
Ohio Canal Company to issue rcplar bcndS to
the amount of $500 600 has been amended IN
the Finance Committee 50 az to provide that
foreclosure proceedings cannot be Instituted
until default upon four payments 0i interest
upon the bonds.
The intent of this amendment is 10 guard the
COMPANY against the risk Of sudden foreclosure
10 case the Company shouId be forced into
temporary default through same unforeseen
occurrence.
A communication was received 10 clch House
oday from President German in Cxplanati0n
of the nature and necessity CT the passage OF
the bill. This communication sets forth that
under section Of the act Of 1874, chapter oSi,
the Company has The right to issue repair
bonds, which shall be a preferred lien upon
the revenues Of the Company, although the
frs. lien upon the canal itself 10 still held by
the State.
The mere legal power to issue bonds, which
shall be secured by pledge of the revenues Of
the canal. is. therefore, ample, but thc Board
thinks that upon sucl security 60 moucy en-
BIO borrowed, except at such ru'nhuI rates IS
should not be accepted, and, thcrcl fore, luther
ity is asked for the issue CT species oil h"nts,
| which, 10 consequence OF the seca!i!y E'cuSau
| for their payment, will BE- sure TO Ea7e high
market value. "A careful estimate OF the cos; Ct
the repairs needed shows that they viii require
the expenditure OF about S250,000. Ii the
| Board is compelled to make use OF SUCH pow
crs IS they now possess, it is thought that bonds
! to at least the am0uat CT *4D0, 600 must be
issued. Il must not be fjrgottcD that the
| money now necessary to repair the canal aud
put it n working order nust be obtained before
apy portion Of the tolls which are to tc pledged
| for it's repayment can possibly BE- carncd. IL!
repair bonds were issued un1er the existing
| powers Of the company, buyers would not fail
| to see that the bonds they were askcd to buy
! rested not upon the security OF present cX
listing reality, capable of bciag sold in case Of
| default, but Dpon future expectancy sutJcct
| to many and great contingencies. The rye
ton of the proposed bill would therefore com
pei the company either to sell its bonds ct DIS.
astrous rates or suffer the canal ITSELF to 20 to
ruin. 1t is for the purpose Of avoiding such
40 alternative that the pen0log bill vas pre-
sented 1t provides for q waiver By the State
of its first lien on the canal itself aaa all the
property of the company in favor Of the bonds,
and it declares that these bonds in their at>so.
lutte priority shall not be superseded by any
future obligations by the company. The effect
of these provisions will enable the cjmpany to
procure by the issue of bonds to tho amount OF
$3.50, 900 all the money required to put the
canal in good DavigabIe order, at the same
time clothing the company with The power
should future emergency arise, to issue 50
much of the remainder Of the bonds as circum~
stances may rtepirc, without impairiDg the
value or disturbing the priority Of those now
proposcd to be issued.
With regard to tho provision in the four tn
section of the act giving tho company the
power 10 build, purchase and loase boats or tugs
and to purchase or hire horse5 and mules for the
proper working of such boats, and to trans
port, as q carrier for hire goods and merchan-
disc, Mr., German says: The experience Ct
the Canal Company for many years domonstrat.
ed tho propriety Of comforting upon it those
powers, and the Board has no hesitation in ex.
pressing their firm conviction that the nero
possession Of these additional powers will en-,
ablo them to increase most materially the bust
ness and revenues Of tho company, and make it
in its operations wholly independent, MS it should
be, Of outside combinations 10 controls It's I'd
mnistrstion. No part OF the bond ISSUE, Is how
ever, to be used for such purpose.
It is expected that the bonds will sell a. par.
Mr.. Loveridge, the President Of the Mary land
Coal Co., stated to your correspondent that his
company would take $4,000 worth of tho bonds
at Dar