Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1889-07-26
Situation Getting Serious.

President Stephen Gambrill, of the Chesa-
peake and Ohio Canal, has announced his
intention of calling the directors together
and laying the true situation of the canals
affairs before them officially. If they can
suggest no remedy, as seems probable, they
will report their helpless condition to gen
eral meeting of the stockholders. The next
step, unless measures for relief can be found,
will be the appointment of a receiver.
President Gambrill said in reference to
the crisis in the affairs of the canal "The
waterway is practically useless to US now,
owing to the heavy damage from the recent
flood. We have done all we could to put it
once more in working order, but our efforts
have been futile. The 100000 repair bonds
which were issued find ne takers, owing to
general feeling that they will prove an
unsafe investment We have advertised for
proposals to make the repairs, offering to
pay for them in toll certificates of 90 per
cent, but have not had single bid Five
coupons of the bonds have matured with
out takers coming forward, and under the
stipulations a receiver can be asked for when
only three have been passed. There seems
to be no prospect that either the bonds will
be taken or any bidders for the repairs will
come forward. If We cannot settle our trou-
bles by August list shall report to the di-
to the stockholders. If we can do nothing
then the management of the canal will pass
into the hands of the courts.
"Repairs have been made to only two sec
tons of the canal. The Georgetown level,
which extends from the mills in Georgetown,
ID. G., to the dam between four and five miles
up the bed, will soon be in condition. A
number of millers derive their water power
from the canal between those points, and
they have taken the question of repairs into
their own hands. Becker 81 Blundon,
Washington firm, have been awarded the
contract at $13, $50, together with $3.50 for
repair to the feeder and feeder gates. The
entire work will be finished in about two
weeks. 1t is going on under the supervis-
ion Of myself and Division Superintendent
j. b. Biser of the canal. The amount has
been raised by the millers and deposited in
bank by Mr.. George w. Cissel, representing
their interests, and myself. The total of
$4,000 is accepted by the canal manage
ment as an advance OF the rent the millers
have to pay. 1t will amount to that sum
in two years.
"The other portion oil the canal repaired
is the stretch of 90 miles between Cumber-
land and the lumber mills of Francis Mer
tens & Sons. The firm is now running
boats upon it. The section was repaired by
the Messrs. Mertens at a cost of $4,000, for
which they will be reimbursed in the event
the repair bonds are sold. No other repairs
have been made beyond patching up few
holes for letting the canal water from dam
No. 6 into Hancock, Md, and from dam No
5 into Wiliamsport
With regard to the conference between
myself, Directors Berrett, Mcclure and Dob
bin, representing the canal, and Messrs. Vic
tor Cushwa, James Findlay and f III. Oar
by, representing interests in Williamport,
which conference was held at the Carroll.
ton hotel ON July 8, | must say that the
delegation made us no stated proposition
They simply asked how we would consider
their plan. Their idea was to go to work
and repair the canal between Mertens' mills
and Williamsport, and run it between those
points themselves until they could be re-
imbursed by the receipts from the tolls
We informed them that, as managers for the
stockholders, we could not accept such a
proposition, which would be nothing more
than surrending the canal temporarily to
outside parties. The claim of the three
Wiliamsport gentlemen that they could do
the work for one half the cost estimated by
us cannot be accepted as a just one Our
estimate was $4,000 for the entire Cumber-
land division, which is 100 miles long. 1t
extends from Cumberland to dam No. a, II
miles south of Wiliamsport. Their esti-
mate did not include the 90 miles put in
order by Mr.. Mertens and the II miles be.
tween Williamsport and dam No. 4, or 80
of the 100 miles. Then, again; our esti-
mate was for permanent repairs, while their
scheme was only To restore navigation TEN.
porarily. The directors placed the cost OF
running the entire Cumberland division, in
Guiding the wharf at the northern terminus,
at $4,000 Il month, while the Williamsport
conterees stated their belief that 81 800
would be sufficient for the same period.
They formed their opinion upon the suppo-
sition that they would not have to pay lock
tenders and other employees during the dull
season, which is not correct.
"rhe best way see just now OF settling
the troubles with which the canal manage
ment is confronted is TO prosecute the re-
pairs on receivers certificates, which would
come in before all other claims for payment
in the event of foreclosure OF the mort
cages held by the State and other parties
II the people doing business along the route
choose they can pay the expenses them
selves and put in Il new management. The
situation is critical one for the canal, and
see but little chance to avoid what | fear
must come-the appointment of a receiv-
er."-Balt0. Sun.