The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1879-05-12

Rl,s OND, w
s.s...-..z.a-.....s..s. ST
$i53, ,6s1 To be approbrfA.t FED to- s11e essifi
enlistment OF d floating deb. OF S153, 3,99S 90
with q reasonable prospect os Equally favor
able fesults' from the OPERATORS cf the ttiel
current year. Yhe bonds of tie GaD1pan,
advanced Id tie market, Dut were tstili un
salable even as late rs the year 1877, ex
cept at prices OF 90 to- 80 per cent. (Se
Colston's dep'n. ~ ;5.3, "a, "a,
PrNaNcTAh CONDITION OF fHE. COMPANY. Z.
Shortly PRIOR TO the passage of tI,eioini
resolution OF February, 1851, i: conference
was held OF several large bendfoIders in
BatImorc,i at which it was deemed expe-
dient TO make renewed efforts to secure the
control OF The canal to be administered in
the interest OF the creditors. One of these
defend ndznts was present at that meeting
andit being deemed byaaltbe parties emf.
nently desirable to secure. the cooperation
of the State OF Virginia, he came to this
city aud sought an interview with the
Board OF Public Works. The Board was
so much impressed With the propriets OF
the conioint action -of-he. State ard the
bondholders, as suggested, that they sub
sianttslly agreed upon contract to employ
these defendants as attorneys and repre-
sentatives OF the State before the attention
OF the General Assembly was called to the
subject. 1t was deemed necessary. how
ever, to have. legislative action aud that
action was had in the adoptionTof the joint
resoIat!on before referred TO. .,F /, - IL -
: Asahat time, according TO the statement
OF the bill, the State Of Virginia held cIains
against the. canal company to rthe amount
OF sS1I, 1868, consistingof claims for coupons
paid as. guaTantor, amounting to S305.02
and interest thereon, $l66, ,494, and OF claims
to her by Selden, Withers 1t Co.,
amounting to S346,4O. =. ;,''h y ~. ,'.' r
To addition to these claims for money due
she waa liable to creditors otthe canal :eofn-
pany for some :.S145.000, Of ,arrearages OF
unpaid and overdue coupons: for s15,000
maturing every six: months ;fof
$500, OF principal Of repair bonds to be-
come due in. two years,,aQd for; 100000 OF
principal OF construction bonds.to become
due in 1888. .'S4. and '85.
Her.clains against the company. soiar as
they were not. protected by the lien upon
the tolls md revenues. were utterly worth
less; for they were postponed TO the claims
Of the 2State OF Maryland TO the extent OF
millions Of dollars; and 30 far as their va
were ali embarrassed with the grayest diff
culties. So far as her claim for the paid eou-
pons went, she was without the evidence OF
the coupons themselves, except US TO $780,
400 which she had returned to the company,
and for which she had received from it
certificate. The rest had been lost or
stolen-most probably stolen when her
records and offices were by the .disas-
trous results OF the war left unprotected.
In that very year Of 1867 she had occasion
to contest, in her own courts, her liability
to repayment as. gunrantor OF the city OF
Wheeling Of coupons once paid by herself
and stolen, perhaps at the time when these
Chesapeake and Ohio Canal Company cou-
pons were supposed to have heen lost. See
Arents Us. Commonwealth, 1s Graft, 750.
Her right to interest upon these payments
was conrreverted question, and has teen re-
iected by the Court OF Appeals Of Maryland
as Just claim upon the tolls and revenues.
rs to the claims OF Selden, Withers &
Co., the result OF the subsequent litigation
has been available TO the State for very
small, fraction-only s13,5C0 Of construc-
ton bonds, with arrears OF interest," from
1852. ~,
A liberal estimate, from the testimony, OF
the then value OF these claims OF the State
could not put their value at more than ten
per cent. Of the face Of the claim, or, say
SSl,755. -..., -,-,i...... ..,t.
Her own obligations. however, were
fixed, and whatever might be their market
value were chargeable upon 'herself to the
extent Of every cent. She was debtor an
present. for Sl45,000 OF overdue coupons,
and her obligation was ca,mulatlng every
six months by the maturing OF $4,000 OF
coupons upon which she was guarantor.
with the imminent liability in two years OF
100000 of principal OF repair bonds, and
a postponed liability OF 100000 OF princl-
pal of construction bonds. ...., -,
Under these circumstances, and in view
Of these facts, the General Assembly OF 'Vir-
gnia passed the joint resolution OF FebrH-
ary &c, 1s67.-Acts 1s6G.'7jpage677.
AUTHORITY OF TIE BOARD OF PUBLIC WORKS.
The Court tkcu goes. on to discuss at
length the meaning and force OF the Joint
resolution, and shows from the relation; OF
the Board OF Public Works to all matters OF
internal Improvement in this State that the
intention OF the General Assembly must
have been to rernit the whole control and
management Of the States interest in the
Chesapeake and Ohio Canal Company to the
Board just as fully and entirely as the Cen
eral Assembly had it."The' full power OF
the General Assembly over the Whole mat
ter was conveyed and delegate dolto the
Board.r .f.,,s :n ir,.,..,..s ..:,,.4. r g,y
{ The broadest discretion is conceded in the
resolution to the. Board, viii, hut one limi-
tatioh. That single limitation is most sig.
nitcant of the object in view: The Board
is forbidden to pay to counsel employed
money out of the Treasury; but to the full
- olI ,It tatr. min hQ
lected, and every dollar ot!a debt which
might be secured, the Board were author
lied to contract for compensation to- coun-
SEX This looks very, much as il the Gene
raj Assembly thought that it might be wise
and advisable to sacrifice the. entire claim OF
the State upon the Chesapeake and Ohio
Canal Company If by SO doing she could
purchase relief from present and fmpend-
Ing liabilities on her BEHALF / am OF opin-
ion thas;the resolution gave 10 the Board OF
Public Works full authority to do so II in
their Judgment such relief were practlcaDle
and sli6h compensation advisable. -. J. .rE
Looking to.the subiect-matter OF the reso-
lution-the dignity OF the agent designated,
the duties Of that agent, under the Constltu.
ton and general laws. to- the Stale as TO all
matters in pqri nsaterta, and the relations II
had borne in the past to the interest OF the
State in the. Chesapeake and Ohio Canal
Company, the character Of that Interest,
past, present, and prospective, and the n1'
ture Of the only security available for pay
ment Of present debts or relief from present
and accruing liabilities-it is Impossible tor
me to accept any theory whieh viii Justify
imputation >to'the Board OF Public Works
OF error in its contemporaneous construc-
tion thereof. = A& - - .a''#'
~. -.