The Evening critic., 1882-06-06
CHESAPEAKE g OHIO CANAL.
Meeting of Stockholders at Annapo-
lisa Lively Debate Between scua-
tor German, Governor Hamilton
nu1 Others.

Inc stOCknOiuefS Ol tne tutSaptuho " OhiO /
Canal Company met yesterday afternoon In |
the executive chamber at Annapolis and |
elected Hon. Henry d. Farnandis, OF Hartford |
County, president of the canal, vice Hon. Ar |
thur P. German, resigned. The meeting was
enlivened by ardent attack by Governor
Hamilton on tho management OF the canal,
and q spicy rencontrelbetween the Governor,
Com ptroller Thomas J. Keating State Treas
urer Barnes Compton, President Arthur p.
German and General Bradley t. job nson. Be-
sides Governor Hamilton, Comptr oller Koat-
ing and Treasurer Compton, cohstit uting the
Boa rd OF Public Works, and representing tho
State Of Maryland, tho other stockholders
present were Thomas p. Morgan, representing
the District of Columbia; J. W. Burke, repre-
senting Alexandria, Va; General b. I. John
son, James c. Berrett OF Washington; Allan
Bowie Davis, Patrick Hamill and Senator Cor
man. on Mr.. Compton's motion Governor
Hamilton was called to the chair, BENJAMIN
Fawcett acting as secretary.
Mr.. German read the nftyfourth annual re-
port OF the president and directors, adopted at
meeting of the board In the morning. The
report gives the total revenue for 1881 as
s3Os,s379 93; expenditures, $241, 1884; rev.
enue over expenses, $67,0S0.99. Law OK
penses, interest on notes OF basin wharf prop
erty and judgments In Allegany County, $3e
than lenethenise the locks, $50, 500 20. Actual
receipts were S2SS, ,751.95 received from sale
Of repair bonds and temporary loan, $4,000;
counted for, s42b92s.30. Paid on labor and
material, 73,716.62; interest on repair bonds,
SLOsO; paid on account OF operating ex.
locks, $60930.43; balance, S45,63s.75; total,
Sd24,92S.20.
General johnson threw O bombsholl into
the camp by Offering the following preamble
and resolutions: Whereas the net income of
| the Chesapeake Ohio Canal Company for
| the year 1872 amounted to $264, 200, and at
| that time the salary of the president was fixed
| at $4,000, and for the year 1874 the net In
| come was 1864, 274. and an extra allowance of
ing expenses, and for 1875 the net income was
| $250,717, and his salary was increased to
$4,000, making his total allowance $4,000 per
annum; and whereas since 1876 the company
| has never yet had any net income whatever,
and has never paid anything to the bondhold.
the company has bound itself to pay s15, 1000
| per annum for the outlet lock, representing
capital debt of s250,0O0; and whereas since
| 1850 the company has sold S124, 900 OF the re-
pair bonds issued under the act of
1878, and has pledged $4,000
more of them as collateral security for
| money borrowed, whereby since 1877 u debt
| of S544, 600 has been placed upon the prop
| erty, tolls and revenues of the company prior
the o ae Of ap
is likewise in arrears in the sum Of S510000
during the same period for interest due and
unpaid upon said preferred bonds, making an
increase OF debt OF 1,O54 900; and whereas
during the last six years specified the reve-
nues of the company have diminished while
during the year 1881 1t has actually expend-
cd $4,000 mere than 1t has received, thus
showing that unless some change is made
the company must soon sink overwhelmed
under the burden Of debt which is accumu-
latipg so rapidly upon 1t, and the State lose
the immense sums invested in it, and
whereas the first step toward rescuing the
canal from ruin must of necessity bo re
trenchment in expenses; therefore
| ReS0lCed, That the salary of the president o.
this company be reduced from $4,000 to "a,
coo, and that his allowance for travelling ex
penses be abolished.
ReSoired, That such president be required t
give up all Official or other salaried or busi
ness employments, and that he be further re
quired to give exclusive attention to the ser
ReSOlred, That the salaries of secretary ani
treasurer be reduced from $4,000 to s1,SOC
and clerk from 81 800 to $1,000, and that tn
! offices of paymaster and extra clerks be abol
ished.
Resolced, That the bonds Issued under tn
act of 1878 were authorized to make repairs
, the canal, before injured by the freshet {
: 1877, or for subsequent necessary repairs, an
that 1t is not lawful to expend them on an
| new construction upon said canal, and tha
their use for the construction OF the extende
locks is unauthorized, and that such is e2
, Resoired, That The president of the Can,
Company report TO the Board of Public Worl
) at the earliest possible day the number Of loci
l extended, where located, the cost of each, WI
l furnished the materials, such straw an
, | lumber, and at what prices, and whether the
l were any public proposals for furnishing th
came.
Comptroller Keating opposed the preamb
as seeking an object that could not be obtaint
t by the resolutions; and to the resolutions
i asking the stockholders to do what belonged
4 the directors.
!. Mr.. Davis said the charter allowed the stoc
It holders to fix the presidents salary, but II
2 the other officers
. Mr.. German said the directors had alreat
:, | reduced salaries below that point.
| Mr.. Keating was continuing his remarl
r whom Governor Hamilton eXcitedly demand'
7. OF Mr.. Fawcett the proceedings Of the directo
where this was done. Mr.. Stephen Gambrl
paymaster, was sent to the canal office
Them, and Governor Hamilton took the fioo
~ Mr.. Davis in the chair.
- Governor Hamilton said In respect to g
preamble he had nothing to say. Wheth
% correct or not, they did not affect the resol
- ton. He was gratihed to hear OF the action
the directors. 1t was step In the right dire
- ton, but he had no knowledge of 1t. On
hands 1t was admitted that the condition
r. the canal was desperate: The financial &C
1,f dition was bad, and the physical condition L
- what It should be. In that section OF the cot
try where the workingmen live there was o
continuous complaint. The canal had
credit 1t was bankrupt the hands unpa
the contracts unfulhlled and many OF the ct
IS tractors unpaid for the last seven mont
w While the officers received their high salari
10 the labor had gone unpaid. and today We
OF hawking around these evidences Of tnde
u edness among the merchants. He had be
d. advised that contractors on the lock extt
Q, sions sold their certificates Of indebtedness
IL 75 cents on the dollar. While the canal W
in this condition, and the bonds being hypo
ecated at 30 cents on the dollar, the $500 q
mortgage threatened to absorb the grand wo
He was glad, however, one step had be
TAKEN The resolutions were now not nee
". sary, but II was proper TO reduce the pre5id,
ar 10 $4,000. He remembered when 1t was 81
lr- 600, and that 1t was wrong. 1t was not
r. slight Mr.. German, for he had resigned,
- was offered In good faith. He believed
German had resigned in good faith, and
=, | trusted 1t would be accepted this time
~ resolution was for the future preside
"a who, he presumed, would devote
~ entire attention TO tho work. When
"a German was elected he was q you
,,a vigorous man, and II he had devoted his
~ tire time to II the canal would now have bi
"a In different condition; but his energies |
',a been otherwise directed, and he had giveI
"a others what he should have attended 10 h
self. With president who knew every foo
~ the canal, every lock, every workman,
~ | would not despair, for since boy he had !
~ faith In the canal, and would have still "
proper management. He wanted to get ri'
the 5000, 900 repair bonds, for those he ieai
With these impending and the State unable
? lend helping hand, 1t was like cloud.
~. | was necessary TO have acomplete change.
1it | had consistently voted for IL, but the OF
, gentlemen In the Board OF Public Works
the power 10 oYervote him.
After more further discussion, Senator
on man said;
9s ~ confess was not at all prepared for
cussi0n OF this sort, for s.atemants such
on have fallen from the lips OF the Governoi
'oo the State. cannot say l am 80 much
os, prised by the statements OF General john
Svys because he has been pursuing that gem
IN line in which he has been very consistent