Evening star. [volume] (Washington, D.C.) 1854-1972, 1889-06-06
THE c. AND o. CANAL PROBLEM.
The Financial Condition and the Future
of the Wrecked Waterway.
A TALK WITH COL. JAMES O. BERRET, ONE OF THE
DIRECToRs-THE COMPANY OWES THE STATE OF
MARYLAND so, 000, 900 A RAILROAD WILL
PROBABLY BE LAID ON THE CANAL BED.

DIRECTORS-THE COMPANY OWES THE STATE OF
MARYLAND 10000, 000-A RAILROAD WILL
PROBABLY BE LAID ON THE CANAL BED.
There have been numerous and conflicting
statements made as to what the Chesapeake
and Ohio canal company is going to do with its
wrecked property, and various theories as to
its financial condition have been made public.
As to the latter, it is probable that no one
knows much more about it than Col James G..
Berret, who for twenty years has been one of
the canal directors and intimately interested in
its management. He talked of the canal to a
STAR reporter to-day, and in response to the
inquiry as to who had the greatest interest in
the waterway he said that the state of Mary
land was three times as large holder as all
the other interests combined. the canal COM
pany owing the state, principal and interest,
not less than $20,000,000.
THE ISSUE OF BONDS IN 1874 TO COMPLETE THE
CANAL.
''What status have the other bondholders?''
asked the reporter. "In 1874" replied Col
Berret, "the general assembly of the state of
Maryland authorized the issue of $1,000, 600
worth of bonds. This sum was necessary to
secure the completion of the canal up to Cum
berland. The payment of these bonds was
only secured by lien upon the net revenues
OF the canal Ito which the state waived its
right, and as there have been no revenues for
number Of years and never will be the people
who hold those bonds possess nothing but a
the application of the money raised under this
act the canal was completed in the year 1850"
1.-THE NEXT CRISIS"
continued Col. Berret, ''came in 1877. when the
flood of that year almost destroyed the canal
The Maryland legislature was appealed to, and
in 1878 it not only authorized the president
and directors to negotiate loan of $500. 900
but 1t also waived its lien upon the corpus of
the canal, so as to give ample security for
the payment Of these bonds. The bonds we're
then considered to be safe investments
The proceeds of these bonds were used for the
restoration Of the canal and since for re pairs
The entire amount has been absorbed and now
those bonds, with three unpaid coupons, are an
outstanding lien upon the canal BY the terms
OF the 1878 act of the legislature" said
Col. Benet, "a majority of these bond
holders have now the right to pro-
coed, according to the mortgage
to foreclosure. The Baltimore and Ohio rail-
road company. holding 100000 worth of these
bonds, could take proceedings to foreclose the
mortgage and sell out the canal; something
which they, in my opinion, are not likely to do
for the present.
THINKS THE CANAL WILL BECOME RAILROAD.
What do you suppose will become of the
canal"
Il think that most of the possibilities and all
the probabilities are that the canal will become
railroad from Cumberland to Georgetown
his Will be great thing and will bring an
immense amount of coal traffic to Georgetown.
L he business will be immense because the road
would be down grade from the mines to the
wharves; the railroad could bring more coal
10 tldewater, with less power exerted,
than any other road in the country. 1t may be
a little difficult for Georgetown people to i'm
agine just now that anything is right. All is
not wrong, however, and we shall, l am salts
fled. prosper through the means Of what GER
tainly looks good deal like calamity. Mean
while steps will undoubtedly be taken to Sc
cure proper supply of
WATER FOR THE MILLS AT GEORGETOWN
by repairing the towpath as far as the feeder
just above the Chain bridge. This supply of
water will, of course, be permanent, and need
not in any way be affected by the railroad con-
nection."
THE MINORITY BoND-HoLpERs.
"What will the minority bond-holders do?"
queried the reporter.
"Minorities have rights" was the reply. eff
the Baltimore and Ohio company unnecessarily
delays the foreclosure of the mortgage
the minority will go into court and COM
pei the foreclosure. There will be
delay anyhow. Nothing can be done until the
legislature meets in January The
canal company is absolutely without means or
credit ana it can do nothing more than possibly
INK up the water supply for the Georgetown
mills"
WHO WILL BID HIGHEST?
''Have you any idea as to who will buy the
canal property"
'No nor has any one else. When the mort
hna hoo, Al
VIII be put up at auction and knocked down to
the highest bidder"
DO you know who the highest bidder will
be?'
'Of course not. The canal franchise is val
liable one. 1t may be absorbed by the Baltimore
and OHIO; the Pennsylvania people may imagine
1t would hit on to their system; the West Virginia
syndicate may be DESTROYS of purchasing; or a
private individual or almost unknown corpora
ton may secure it. Whichever of the roads
thinks it would add to their business will pur-
chase 1T. No matter what any one says, it is
only mere speculation as to who will get it."
PRESIDENT GAMBRILL
started from Georgetown this morning for a
trip along the entire route of the canal. He
will make careful inspection and hopes to be
able to complete his tour by the 18th instant,
when the board of directors will hold a meeting
to receive the reports of officers and to come
SCENE OF DEsoLATIoN.
Things have desolate look in the vicinity of
the canal bed at and above Georgetown. The
mules who always have a tired look. hang
around the place where their pittance of feed
is doled out to them. The chill
dren play along the remaining fragments
of the towpath, roll down the once grassy but
now clean-scraped banks to the rivers edge.
or make mud-pies out of the wealth of material
nhl Iaga -l,..rr
babies and look more serious than
they have heretofore. The destruction OF the
canal means a great deal to them. They will
have to move away from scenes that have been
familiar to them ever since they were born.
VISION OF HOPE
Their husbands do not stay around the boats.
they are to be found in the stores of George
town or in the vicinity of the canal Office, dis
cussing the situation in their primitive way.
every man honestly trying to believe (and ap-
parently with success) that the old water
way will soon be repaired. and that
when the birds begin their chirping next
year and winter looses his grip on the throat
OF spring the sober mule will once more tread
where others of his kind have trod before him,
and that the cumbrous bluff-bowed canalboat
to the muscle of the mule, will again
walk the chocolate-hued waters like thing of
life-a lazy, He-down-in- the-shade- and-go- to-
sleep sort Of life.
HARD TIMES AHEAD FOR CANAL EMPLOYEES AND
BoATMEN.
The canal company has in its employ about