Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1880-02-06

reSiou, ofZi UUO only DelnR mlneQ mere aad
sent 10 market, while in 1877 Cleariield mined
and sent out ,374, 900 tons. In 1873 the re-
ceipts Of the Reading Railroad Company fol
transportation Of coal was 50, 900, 900 which
WAS reduced in 1876 to Sc, 700 900, and in
1877 10 81 500, 900, decrease of nearly two
millions of dollars in the trade OF that com.
pany, and yet ii is alleged that the decrease
in price we received for tonnage was owing
TO political Encouragement
81 desire the testimony Of the gentlemen
who control the mining interest of Allegany,
nearly al! OF whom reside North, and, ! be-
lieve, are opposed 10 Inc politically, and il
these gentlemen say we have not managed the
work with view 10 the best interest of the
trade and the canal, we are willing to suffer
public censure. They will, am sure concur
iD the statement that during 1877 the Mary
land coal fields suffered the severest season
known in the history Of that industry, and
the Canal Company endeavored, in view Of
this, by reducing the tolls, TO do all in its
power to retain and protect its trade.
1.-THE act Of 1878, the passage of which |
advocated on this floor, was necessary, but
they charge it was detrimental to the interest
Of the bondholders by placing the canal in
the danger of being sold in default of the
payment Of interest TO the great injury Of
the bondholders Of 1874. To fully under
stand this part Of the case we must look back
10 1871 when our troubles commenced by the
labor strikes and the conflict with the Balt-
more and Ohio railroad, correspondence COW
ering which was submitted TO this General
Assembly. When the Baltimore and Ohio
railroad endeavored TO obtain aH unfair pro-
portion of the coal trade, and it was decided
that we should maintain our trade at what
ever cost, and when, about the close OF the
season in November, 1877, the great flood in
the Potomac came and swept the canal from
Cumberland to Georgetown, leaving scarcely
one mile uninjured, it found US with buta few
thousand dollars in the treasury, and with
no credit anywhere in the country. The
president and directors determined it should
be restored, but when we went to the coal
companies who did business over The line
they would not advance dollar unless we,
as individuals, Endorsed and became respon-
sible, and every dollar of the officers of the
company was placed in jeopardy. We then
determined TO come before the Legislature as
a last resort and ask the State 10 waive her
lien to enable us to sell these bonds and put
the work ia a condition TO produce a net reve-
nue. in the future Now, in procuring that
legislation there was a gentleman then hang
ing around the halls Of legislation here--l
will name him, Mr.. John p. Poe, now one of
the counsel in this case in the interest of the
bondholders-and, knowing his familiarity
with this matter, we employed him rs coun-
sci to assist in preparing the bill and memo
rial to the Legislature stating the reasons for
the legislation desired. He (Mr. Poe) drew
up that memorial, which will be found in the
Senate documents of 1878
Mr.. German here read from the memorial,
in which Mr.. Poe sets forth that the passage
of the act of 1878 was not question OF Dor
rawinu IN incraa the af tho
company, out "a vital question of raising
means to put the work in a condition TO earn
any revenue whatever, and the practical re-
suit of the rejection of the act would be
either 10 compel the company to sell its bonds
at most disastrous rates or suffer the canal to
go 10 decay and ruin"
Mr.. German then continued "This me-
mortal, AS stated, was drawn up by Mr.. Poe,
and now, as counsel for the bondholders, he
attacks the validity Of the bonds issued by
reason of it. This may be perfectly probes
sioual-that do not know--but such as are
not Of the profession, and take an honest
view OF matters, would hardly indorse the
attorney of the canal company, who drew
this act, as a principal mover ia the attack
upon its validity. It may be asked, it the
present management have paid to the bond
holders more than they received for twenty
years previously, why This attack2 My i'm
preston is that it Will appear upon investiga-
lion that there is yet auolher-nst yet made
public-reasou for it.
THESE gentlenen who now attempt TO get
possession OF this work, in l867 by m srep-
resenting the infringement Of the canal and
by other means, induced the General Assem-
bly, to pass an act placing the canal in their
hands, mean Messrs Poe and Jobnson-but
when it came 10 the annual meeting of the
board OF public works, Gov. Swami, Treas
urer Fowler and Comptroller Leonard, or
Jump, forget which they refused to trans
fer Maryland's work TO few creditors, and
declined TO execute the law. iour censtilu-
tional convention shortly afterwards met, and
what suppose was never done before in
serted provision repeating this very act,
and thus these gentlemen were foied in their
attempt TO take the work 10 which you have
so many millions They then contracted with
| Virginia TO represent her interest, and secured
| from the canal company large sum of money
/ which they claimed TO be due her They come
again to the Legislature and ask the passage
| of an act TO make the Stale a party to the suit
! instituted by Virginia and Mr.. Corcoran.
! 'But the cause of this suit against the canal
may be found in a case pending elsewhere !"
Mr.. German then stated that 1.-THE Messrs
Poe aud johnson had been employed by the
State of Virginia TO prosecute her claims
against the canal company, and having done
so, they had, by their contract, which was a
matter OF public record, claimed and retained
illegal fees amo nting to over 1927, 900 that
the State OF Virginia had since brought suit
against those gentlemen to recover $3.50, 600
OF the amount retained as fees, on the yrou d
rs claimed by the attorney general of Vir-
ginia, that they had not properly settled their
account with the State, and had not complied
with their contract 10 place the anal 10 The
hands OF receiver" Mr. German concluded
by asking reference Of the matter to the
joint committee Of the Legislature, under sec
ton 3, article "a, Of the constitution
Mr.: Peter then offered a resolution, which
was adopted, as follows
whereas certain bill has been filed in
the Circui. Court OF the United States Tor the
district OF Maryland against the Chesapeake
and ONO Canal Company by one Daniel X
Stewart, subject of Great Britain ms the
owner of certain bonds issued BY the said
company under the act Of 1874, chapter 2sl
By which bill it is sought to take said Chesa
peake aud Ohio canal from the control and
management OF the State of Maryland, which
Is the holder OF the major part OF the stock of
the said canal company, and the largest cred
ltor thereof, and 10 place the same in the
hands OF receiver under the control and
direction Ot said Circuit Court of the United
States. And whereas the prayer Of said bill
rests IN part upon the allegation that the
General Assembly Of this State by the pas
sage OF The act of 1873 chapter So, uncon-
slitutioually deptiyes the holders of certain
Claims against the said canal company OF
their proper rights and in part upon allega-
tons OF tho said acknowledgment of the
said canal company by the agents whom this
State has, through its board Of public works,
placed in conlrol thereof And whereas this
State cannot vindicate the perfect good faith
and validity Of its legislative acts, or protect
its particular rights in said proceedings be.
cause it is not and cannot conslituiionaily
become party thereto, inasmuch as the said
Circuit Court Of the United States has moi
jurisdiction when a State will be affected by
the decree sought to be obtained And where.
as this State cannot, therefore by any proper
proceeding on its part In said court, TAX,
cognizsnce Of the matter complained of in
said bill. And whereas 1t is the desire of th,
president and directors of said Chesapeak,
aud Ohio Canal Company and the board Of
public works that the matter so complained
OF In said bill should be investigated by thi,
General Assembly, which is fully competent
and bound TO undertake the task aud IL