Evening star. [volume] (Washington, D.C.) 1854-1972, 1882-06-07

Gov. Hamilton Arraigns the Manage.
ment Of the Canal

DIS ELECTED PRESIDENT.
From the Baltimore American June 8.
ANNAPOLIS, June 5.-The annual meeting OF
the stockholders Of the Chesapeake and Ohio
canal was held in the executive chamber at the
state-house here to-day, and one of the most
remarkable political squabbles on record took
place between the governor of the state, a
United States Senator, the controller and the
treasurer, each party with its appropriate back
ing of stockholders, who were there in meager
attendance also. The meeting was looked for
ward to with some degree Of interest, as 1t was
gently intimated that Gen. Bradley T. Johnson,
who has power Of attorney to represent some
shares OF stock, was going to throw q firebrand
in the midst of that usually peaceable assem-
blage. In fact, the General had expressed his
disapprobation of the temporizing ban, the al
legged resignation of Mr.. German from the canal
presidency, and proposed to draw matters to a
crisis. 1t was General johnson who instigated
the Stewart suit against the canal for q re-
ceiver, and. as is well known. this proposition
was defeated. The next move was to get q
whack at German, and it was obtained yester-
day. The result Of the meeting was a general
showing up Of the workings of the canal board
under Germans management, and two good
things were accomplished. The salaries were
reduced, and the resignation of Mr.. German
accepted; he was allowed to retire without even
vote of thanks, after ten years service, and
Mr.. Henry D. Farnands was electedin his place.
The general opinion, however, is that Farnandis
was dernler resort; that he was fixed up as the
most likely man to decline, and thus, after hav-
ing drawn the fire Of the belligerent general Mr..
Germans resignation would be shelved for q
little while longer. 1t is evident that the direc
tors met this morning and held hurried con-
sutatiOn before the stockholders meeting, and
the plan OF action was arranged as followed be-
low. There were present at the stockholders
meeting, Gov. Hamilton, who was called to the
IN r. o6 foaS bow np
Heating, Treasurer Compton, j. w. Burke. of
Alexandria; Patrick Hamill, Of Garrett; Allen
Bowie Davis, James Berrett, John Humbert,
and last but not least, Gen. Bradley johnson;
with formidable armful of documents. The
meeting opened with the reading of the fifty
third annual report of the president and direc-
tors by Mr.. German, who also stated that con-
tract had been made with new road that was
to be built on the Maryland side OF the north
branch OF the Potomac, from Bloomington to
Fairfax Stone, parallel with the West Virginia
Central Road, to the Elk Garden coal fields.
Gen. johnson objected to this contract being
ratified. and it was referred to the board Of pub
lie works.
GEN. JOHNSON THROWS IN FIREBRAND.
Gen. johnson then read the following pre-
ambe and resolutions:
Whereas. The net income Of the Chesapeake
and Ohio Canal Company for the year 1872
amounted to S264, 200 and at that time the
salary of the president was fixed at 81, 900. and
for the year 1874 the net income was $264, 274,
and an extra allowance of 81 GOO was made to
him annually for travelling expenses; and for
1875 the net income was $3.50, III. and his salary
was increased to IS. 600, making his total allow
ance ST, 600 per annum; and
Whereas, Since 1876 the company has never
had any net income whatever. and has never
paid anything to the bOndholders of the COM
pany; and
Whereas, Since 1867 the company has bound
itself to pay $4,000 per annum for the outlet
lock. representing capital debt of $3.50; and
Whereas, Since 1880 the company has sold
$1A, 600 Of the repair bonds issued under the
act of 1873, and has pledged $4,000 more of
them as collateral security for money borrowed
whereby since 1877 debt of $544, 900 has been
placed upon the property, tolls and revenues of
the company prior to the mortgage of the pre-
ferred bOndholders and Of the state Of Maryland.
and the company is likewise IN arrear in the
sum of $4,000 during the same period for
interest due and unpaid upon said preferred
bonds, making an increase of debt Of 81 ,O54 900
in five years past; and
Whereas, During the last six years specified
the revenues of the company have diminished
whilst its operating expenses have increased.
until during the year 1881 it has actually ex-
pended 34O, 900 more than it has received, thus
showing that unless some change is made the
company must soon sink overwhelmed under
the burden of debt which is accommodating so rap
idly upon it. and the state lose the immense sums
invested in it, and
Whereas, The first step toward securing the
canal from ruin must of necessity be retrench-
ment in expenses; therefore,
ResOlued That the salary Of the president of
this company be reduced from S.. 600 to 81, 900.
and that his allowances for travelling expenses
be abolished.
RESOLVED, That such president be required to
give up all other official or other salaried or
hrNcn nFnv,1n onnfo <hot hoh <, F,,rk
required to give exclusive attention to the ser
vice and operation Of the canal.
ResOtued, That the salaries Of the secretary
and treasurer be reduced from g. 100 to 81 800,
and the clerk from 81 800 to 81 500, and that
the offices OF paymaster and extra clerks be
abolished.
Resolved. That the bonds issued under the act
of 1878 were authorized to make repairs to the
canal before injured by the freshet of 1877, or
for subsequent necessary repairs and that it Is
not lawful to expend them on any new con-
structiOn upon said canal, and that their use
for the construction Of the extended locks is
unauthorized, and that such Is expressly for
bidden
RESOLVED, That the president of the canal COM
pany report to the board of public works at the
earliest possible day the number of locks ex-
tended, where located, the cost of each, who
furnished the materials, such as stone and lum-
Der, and at what prices, and whether there were
any public proposals for furnishing the same.
GEN. JOHNSON FOLLOWS UP HIS BOMB.
Mr.. johnson said: It may be, and possibly is,
very apparent to the voting stockholders Of the
Chesapeake and Ohio canal that we should re-
trench somewhere. We must make change
and reduction-not a niggardly one either.
First, however, we must begin with those things
which we can lay our hands on. After we have
accomplished something here we can look fur
Their ahead. The salaries Of the officers seem to
constitute the nearest thing within our reach.
The salary OF the president Is $4,000. Suppose
it is reduced to $4,000? 1t would be small
amount. it is true. to give to q man who would
devote his entire time to the work. Or if the
canal was a wealthy corporation wouldn't say
word about the reduction of salaries; but
with debt Of million dollars hanging to it.
utterly bankrupt, we cannot pay these salaries
while the labOrers and contractors are getting
only notes for their money. / have another
proposition embodied in the resolution, which is
that the president Of the canal should give his
whole time to it. / have no personal object in
saying this. do not intend to cast any re-
Election upon Mr.. German. His letter of
March last showed that he fully in
tended to resign. In his place it is in
cumbent upon us to elect a man who can
and will give his entire attention to lifting
the canal out Of the utterly ruined and bank
rupt condition in which we now find it. The
work might occupy the time of the ablest bust