Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1880-01-03
The chesapeake and Ohio Canal

Canal Company fled gfs ordsy 10 thc United
| otai"s District Cour; in Baltimore bill il cqui
! ~ against The canal 'mpaoy. praying the court
iof 81 lrjuacii0n sgalust the .roseut msuaEe
m"Ht of the canal aud fer !bo sppou!mcrt Of
| receiver 10 take possession Of tao canal proper
| ~ !rloca!ses, books, accounts. d., with III
tnority TO manage the canal uutil the BITS
! cislmed TO DC due the coma!ainars are fully
satisfied. The soit is brought in he psmo Of
! D.u! *. Stewart. The Dill gec:tes 10 detsil
re history ri tho canal spd tie acts OF the
legislature Of Ma.s;aud b3aricg upon it, the
is''u!C Of tic c0mpsDE e. pay interest 90 tbs
iasu2 pldrg tho sc; Of ISL Of which houGs,
wi'h Interest c2apnaa, commitment hold $3.50
Oiu the whole ISSUE having been 81 500, 500
!'i!c amounts duo tho h0liera of these bonds
o. ;hc e9Up5's from june /, 1868 arc m;
r WI 81 over $1,000, co. Ii. bill ;hcG charges
th"t nc o1laHa0g Is largely i'S'ivcut, wholly
ucsb'e s. pay rs debt, anu that by 20 proceed
lngs at iaw or equity CaJ the hnLdhoiiers OBJ sic
payment OF their GAINS cut Of thu property OF
the Company. Further. that By the act Of the
crl9a'uTc IN 1878. authorizing an issue of
$0UO UCO o. Doud:. secured tY { mortgage upcp
;hc canal Itself, It's tolls and revenues. the State
81,
thGt the eti'cf # that act Is tc cxpCs. holders
nj tie Hr2ierFed construction bonds 10 the total
l. y 0. heir security, ar; caas, hc cGmrspy
70 dofaut 70 the paym nj g! ill., semi apnua!
cinp< as Ia thc irst s.uo, ana that he accept.
%LGe OF tho G0t CT 1878, sud tbs execution Of
tins mortgage under IT, vas o 1autOp sscrltce
81 Gae :fus Interests CT tic company ouG of the
property rights # tho preferred boGuhcldcrs.
Ale, that tho set ct 1878, chatter IS, snd the
mofteagc ara boads -snca uador il, efe pull
and 7oli Is aesiost hin ard thc oth:r hollors
10! ho proietl,d bonds ~ taki?g from such
oUnH'!d eis The security scQGired oder the Act
Of loii.
/ So complainant urges that i is upl.wtul for
HE III soy 10 tsruuc to cxvrc sa sGsh pow.
Is II - ks 20 d. u2def tav act CT 1875 in order
to Prnwldc i"r ao!ic;oareti nece SIZES that The
to!io rnd revenues my be sufficient 10 meet:
aaG tvdi9 that tie alleged .;rticicrcy # m,sus
to meet these charges did rot in iact exist when
tue company executed in!s mortgage. cyccpt
through iHu ut,I!ie!u! gE!d inpfopor .uuapdcr-
Ing 2n; i:Ytr9iol 0! the GIGars Of The coupapy
by iiF Une7ts, so he charges that this def
GlraGy vi EieaL5 Sc cree'cd, was rot grca,e,
filac u!,' have tetG readily met iror1 thc CUP,
rent tolls AID rrgcnuCS, apd WAS fa, less thar
'hc iarGc 8Un witch the COMPANY ;ius assumed;
10 borrow.
Enc bill! then charges tbet the duty Of the
oorporaSion was 10 ulauag1 It's affairs honestly,
Wisely anc economically, So that ia 'uld exercise
tho iraichlse Conferred upon il Tor the benefit OF
all the public and tor thu security md pas
| mcnt OF ;hc {, bt due c0inniaiaaut and other
creditors Xix" him. But Instead Of the oGrnn-
ralor gc1icrWpg l;s lcgtmat0 tutcs-tUr the
lugprae flr Whoh il ~ :, crgated-it has for
s3y"rai yc''s ia5s hccn used to: The accom- psh,
men! Il Ut cts entirely destructive of tho ID
! i'Fcst4 AID BIS o. iup!eiGant and Obcr
csadltcr>i .ha, IL aas cn used, apd is now
6clGg Iseu, 10 & sTcal txtOLt, at p1!it!ca! aa
csi1o Tor ihe promotion o. partisan purposes,
vi !iCut regard &c tho righ' OF creditors.
1t then rccues tfst 'sho president of the
c'mpaDy, Arthur p. German, csq is now, and
has teeu iog some years psst, the chairman and
head OF the State Central Committee of o 20.
Utica! party IN ;;ls State Of Maryland, aud
ncultef OF the Senate of that State and tho
| nho!o powcr and patronage Of thy caosl com,
pRnP nave D"eu fpT several year! past, sud urr
! GOV, applied and devoted mainly 10 partisan
purposes hy HIN and those who: with him. ex
| crt controlling L. tluruc' Ia the mana cement
oil the canal c>mpa"y. 70 the great iii ry Of
the nights OF complainant and its other band
h0iaeTs.n
Courioinant then charges that ''thc ssi}
G0rman aud those who with lion control the
comaap", have, Gutus the last thren ycsr-
uDder ratHusc rt employing prrsoos &c perform
s"lpic ter The c,masuy, kept their own poti
e# and pariiSsG as!rja N lls pay, vel! SnCy..
100 thai these persons W 70 uut 10 fact 10 the
| sc!V'oa o! he cGUpln and Dot cniiGIed TO re
cclTo pEY from IT, aud thst thry hare Ii p!cyed
ard paul ous 81 ihc iuuGs Of TIC pany, lar:c
uumo"rs 0t unnecessary gDd u%siras en- pInyccs,
ter thc saulc lmpr1ptr purpcSs o! prcmotiog
! Hl ~; n i 6t
that this gr IS abuse and u-app. c .!loo Of thr
tclS sud fe7rEues 81 The company has been COT
due cd 7acTet!y, aud that tic losses 10 the com
| PAM thereby 0ocasl0Ded have becn su,h as
ft8at!y 20 i;juIo Us Cc2Gi org, az hC 10 to c cate
the pretended necessity fJi the cragtiou of The
Last mortgage"
l. iurluer charges that .ha luouagcls heys
;airri' RED 10 elections IL tho crur ties through
which the canal passes tsi us patronage au,i
| rOoncp 10 ct c, those VITO wee put M az their
caGGtatcS ADJ TO defeat heir opy0ueLts; End
o. such 'urAc @! INSTRUMENTATION AID lrii
! maua9encot have recpc"d the r'yauurs Of the
cana! aod disabled il from periorming lis c,a.
tract with lfs creditors.
lt.c bill exhibits tho statement Of the bust
uc.s OF tho canal crippaGy, With It's reccip ard
expenditure Tor several years past, as shown
by he annual reports Vf the president and
dir c.Qrs 70 The stockholders Of the COMPANY
and says that fou tie sat, moIt it is man,i, So
that under 40 Present wnstcful Gnd cxCrsys
esnt admlris rat0c nl the caGa Company. while
'''e Tonnage CT ;ho company tss cot decreased
% pet ceat, 'he receipts bavc diminished q, r.
| than slxtT " CIT, ant tho rcs income ia.
| aeGo reduced ion over $3.50 600 70 norhipr.
COmpiaiasat further alleges that the presi
dent aud directors have peysistep!ly rcfu.o6 tn
pu5.i5n monthly statements Of expenses, uot-
! 'Sittsteuding orders passed by the stcckboli
els e. that III O.. aod hat the mystery 10 which
lta afiails have been prrDostiy SUR uodcd is
cue Of the acst cfc.ent ueGas by walch the
maha6emsnt 1t the cacsl acd the nisanplica
lIcn Of rs !uads have been Concealed trvn. is
| Creditors
Comp aoant ch.r2.s. ''thal by reason of IN;
| eross ulisnangseo;ent ar1 masjmiuis rarion f
go hnslGS O: t. csrni b7 PRECEDENT German aud
BIS as%0cja' 5, By the pArvclsion f it from
tuSitCSS cIrUOrlt.EE q q D,rtisar mach N u.oS