The Evening critic. [volume] (Washington, D.C.) 1881-1885, 1884-01-02
CHESAPEAKE s. OHIO CANAL.
A Matter in which the District 4
Largely Interested.

Tho special correspondent OF the Baltimore
Sun, writing from Annapolis, says: "rhe
Chesapeake & Ohio Canal Is matter neces-
sarily 10 be considered by every General AS
sembly OF Maryland. The State has Ave mill
lions Invested In the stock OF this work, two
millions in Its bonds, and over sixteen mil
lions OF dollars are due from It for interest.
interest directly in charge OF tho Board
OF Public Works, insures Its contlnu-
anco In politics rs n disturbing eie-
ment, ana also It's comparative mlsmauage-
ment as n business enterprise. There Is
rumor that at the present session OF the Legls-
laturo bona-flde effort Will be made toward
taking the work from politics. by what pro-
cess however, is not Indicated, unless II be
through n change In the constitution, which
seems to be seriously contemplated. In 1878
tho preferred bondholders made an effort to
get tho management OF tho canal for the
satisfaction OF their claims, and later on an
unsuccessful effort was made TO put II In
the hands OF n receiver. The preferred bond
They came forward with S1,700 600 to COM
plete the work In 1850. The State waived
Its priority as MORTGAGE OF tho tolls and
revenues in favor OF the preferred bond
holders. The interest on these bonds has
been paid only to July, 1884. The last coupon
was paid in January, 1877, out OF the earnings
expenditure of $250,000 for reconstruction.
Repair bonds were authorized by act OF 1873
TO the extent OF 100000. The security 10 this
case went behind the preference hitherto
waived by the State on the tolls and revenues,
and pledged the corpus OF the work. Its APP
purtenances and It's tolls and revenues. only
d very small amount OF the bonds OF 1873 were
disposed of and the management was deferred
from using them TO lengthen the locks,
which Ia considered the only means OF en-
abling the canal to successfully compete
with rail transportation. Nevertheless the
repair bonds OF 1878 stand IN the way OF the
preferred bondhoiders, who, In addition 10
being kept ont Of the interest on their bonds
for so long time have had In 1882, 1888 aud
now In 1884 TO contemplate tho maturity OF
the bonds without hope OF the return OF tho
principal OF their investment. The principal
and interest OF this debt is over three mill
llOrs OF dollars. one measure of relief pro-
posed In quarters Interested Is TO refund tho
principal and interest in new bonds equal in
security TO the repair bonds OF 1878. The
argument in favor OF this course 10 strong,
for II the loan OF 1878 was necessary to restore
the work, that of 1Sti-'50 was Indispensable
TO Its completion, and kept from being utterly
lost the large loans and subscriptions pre-.
viously made by tho state and individuals.
What form Legislation will finally take In re-
gard 10 the canal remains to be developed; but
there is no doubt OF the fact that the session
begins with a stronger disposition than has
ever before appeared OF dlvorcing the canal
from politics, either by sale or lease, and OF
making some Just and equitable arrangement
with the preferred hondholders.