The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1888-01-21

supporting them from its treasury The
Chesapeake and Ohio canal benefits the
people of the whole State in the influence
which it exercises upon freights on coal,
thereby reducing the price of that commo-
dity. In order to prevent forced sale of
the canal and sacrifice, perhaps, of the
States interest, it will only be necessary
for the State to invest, in the manner |
have indicated, two hundred and fifty-one
thousand dollars in order to give it absolute
control of any foreclosure proceedings
which could possibly arise under these
bonds There are other bondholders who
have lien upon the tolls of the canal. In
the present condition of the canal these
bonds possess but little, if any, value. But
were sale of the canal effected, the ques-
ton would at once be raised What is the
status of these bonds? The principal Of
these bonds amount to some 81 200, 600,
and about as much more is due for interest
The States claim, as have shown, princi-
pal and interest, is over twenty-five millions
of dollars The whole bonded Indebtedness
of the canal should be adjusted, so that in
case an offer for purchase of the canal
should be made the treasury officers would
know exactly how much, in given sum
the State would receive for interest. AS
these matters now stand it would be diff
cult to determine, in the event of sale
what share of the proceeds the holders Of
the lien upon the tolls would be entitled to
In word, if the canal is to be maintained
it should be reorganized
sUsoUEHANNA AND TIDEwATER CANALS
On the subject of the Susquehanna and
Tidewater canals the comptroller shows the
efforts which have been made to effect set
Elements with the Reading Railroad Com
pany of interest due since July, 1879, and
to place mortgages among the productive
investments. The comptroller says:
"Some propositions of settlement will
doubtless be made either by the Susque
hanna and Tidewater Canal Company OIL
their lessee But whether they are made
or not, it will be the duty of the Legisla
ture to provide for the protection of the
States interest in the mortgages which il
holds against these canals, either by fore
closure or re-entry. AS the law now
stands in this regard, it is considered
doubtful whether the treasury officers or the
board of public works have any authority
without further legislation, to compe
either the canal companies or their lesse'
to make settlement of these mortgages Of
the arrearages due Hereunder The claim
which the State held against the Phila
delphia and Reading Railroad Company
for debenture scrip, amounting to on
hundred and fifty thousand dollars, anC
which had been considered of no value
has been settled upon the payment of for
ty-fve thousand dollars"
THE STATE DEBT.
The debt of the State September 30
1887, was s10,960, 535.56. The Stat
holds stocks and bonds on which interes
or dividends are paid amounting tt
So ,299, 301.60. Deduct these and there
remains as the net debt of the State, 30tl
September, 1887, S., SCI 1896 The ne
debt of the State on the Both of Septem
Der, 1886, was s6,113, 1898, which
shows total reduction in the debt during
the fiscal year 1887 of $451, 925.72.
Before the meeting of the next Legis
lature the sterling debt of the State
amounting to S4,OO1, 111.11, will fall du'
and mature. No special tax has ever beer
laid for the redemption of this debt, and
therefore, there is no sinking fund for it
payment. The debt was created in TIL
year 1888 for the purpose of raisinl
money to enable the State to aid in til
construction of the Baltimore and Obi
Railroad and of the Chesapeake and Obi
canal. The interest which the Stat
has to-day in the Baltimore and Obi
Railroad and in the Chesapeake and Obi
canal represents the sterling debt and fur
nishes ample security to the creditors t
whom this debt is due, without imposing
any tax to provide sinking fund for it
ultimate payment. The State has in tn
Baltimore and Ohio Railroad Compan
and its Washington Branch Railroad stocl
amounting at its face value to S1,518,
615.70 This stock pays annually to tn
State dividends amounting to S113, 1866
The interests of the State are identifies
with this work, and the property intcres
which Maryland has in this foad should b
retained. Holding these views, there Is bG
one thing for the State to do in relation t.
the maturing sterling debt, and that is t.
have it refunded. This can best be dom
by exchange. We have successfully ex
changed over eighteen hundred Thousand
dollars Of tne debt of the State in the pas
eighteen months, at three per cent. interes
per annum, thereby saving annually owe
fifty-four thousand dollars year in in
terest We receive in interest from tn
States investments in the Baltimore ant
Ohio Railroad Company annually sun
almost sufficient 20 pay the interest on I
four million loan bearing only three pc
cent. annum. While it may not be ~
easy task at this moment of time to ex
change five per cent bond and issue in
stead bond bearing only three per cent
interest per annum, yet within the mex
year money may be more plentiful; ant
now that the precedent has been set to tn
amount of nearly two millions of dollars, i
might not be difficult task 10 double tina