Evening star. [volume] (Washington, D.C.) 1854-1972, 1889-06-13

RECOMMENDATION THAT TOLL CERTIFICATES BE
ISSUED TO SECURE PRIVATE CAPITAL FOR PUT
TING THE CANAL IN GOOD CONDITION.
Special Dispatch to The EVENING STAB.
ANNAPOLIS, Nd, June l3-The Chesapeake
and Ohio canal was the subject of considerable
discussion at Annapolis to-day. The board Of
public works met at the state-house this morn
ing to consider ways and means by which the
wrecked waterway might be rebuilt and put in
thorough working order. The meeting was
called to order in the executive chamber by
Gov. Jackson, who, with State Controller Baugh-
man and State Treasurer Archer, represented
the interests of the state of Maryland. Others
presens were President Gambrill. Directors
James G. Berret, Hamill. Ahalt. Dobbin and
Amman, Treasurer Spencer Watkins and Ac-
countant Ayers.
President Gambrill read the report on the
condition of the canal, which in substance was
the same as that printed in The STAR.
The sum of 100000 was the estimate for re-
pairs, but the report stated that the work might
be done for $4,000, or less President Gam
brilrs report, the latter portion of which was
read by Col. Berret, because Mr.. Gambrill was
attacked by nervous chill, concluded as
follows:
PRESIDENT GAMBRILL's CONCLUSIONS.
1--WE feel sure that our estimates of cost to
repair the damages to your work is about cor
rect. The question then to be solved is: How
can the repairs be made and the canal put in
proper condition for navigation? The COM
pany having neither money, securities or
credit That it is important to the interests of
the state, the coal shippers, the bond holders
and the business interests along the line from
Georgetown to Cumberland that this great
waterway should be kept open, admits of no
question. While the state has not
directly received anything for her in
vestments in this work, yet indirectly she
has been well paid, as the building
of the canal was the means by which the vast
coal-ields and industries Of western Maryland
were developed thereby, adding greatly to the
taxable property of the state. For many years
it was practically the regulator of freights
from the western part Of the state to the sea-
board, especially on coal, and it was the means
OF Baltimore city getting its coal at much
lower rates than it could have gotten it by rail
had not the canal not been in existence.
To abandon the canal will be great calam-
ity to the state, and especially to that portion
through which it runs.
But how can it be restored?
BY the constitution the state is prohibited
from lending aid to any works of public i'm
provements. The bond holders of 1874 have a
lien upon all the net revenues, and as they
have received no interest since July, 1864, it is
useless to look to them for relief
BoNDHoLDERs CAN FoRECLosE.
The bonds of 1878 are a first lien on the
corpus of the work, the state having waived
her claim in its favor. On these bonds four
coupons are now overdue and on the 1st of
July next another coupon will become due.
The holders of these bonds are now in a con-
dition to institute proceedings to foreclose, and
in the present condition of the canal it is not
likely that they will advance money to the
company. The only mode, therefore, that
suggests itself to your board for raising the
amount necessary to restore the work
is by subscription from the
coal shippers, the business men and
others who are so deeply interested in its rest or
alton. The security which the canal can offer
for such loan is an issue of repair bonds TN
der the power vested in the company under
the act Of 1874 chapter 2S1, or by the issue of
the toll certificates such as have been on sew
eral occasions issued. Win tnlS view the boar u
have therefore determined to call a meeting of
all those who are interested in the preservation
Of the canal. to be held at the company's office
in Georgetown on Wednesday, the 18th of
June, to take into consideration this subject
and the future Of the canal"
IN FAVOR OF REPAIR BONDS.
John P. Poe, of Baltimore, who represented
stockholders, but especially the bondholders Of
1884, made a strong legal argument in favor of
the issuance of additional repair bonds. He
quoted from decisions Of the supreme court of
the state of Maryland to show that the corpor-
alton could properly do anything which was
necessary to its existence as O carrier and they
offered resolution pledging the canal company
to do all in its power to restore the canal at the
earliest possible moment.
The resolution provides for the issuing of
repair bonds, the security for which shall be
the future tolls and revenues Of the canal At
the suggestion of Treasurer Archer a proviso
was added, calling upon the attorney-general
of the state for his opinion to the legality of
snch issue. An additional resolution author
ICES the president and board Of directors to
issue toll certificates il they deem such action
necessary.
COL. JAMES @. BERREr
hoped there would be no opposition to the
resolutions offered The importance of the
canal to Maryland and to the District OF Colum-
men, the farmers and the residents of the Dis
trict were all interested. Two hundred thou
sand tons Of Cumberland coal were annually
consumed in the District Of Columbia. The
advance consequent upon the destruction of
the canal would no be less than SO cents a ton
total OF S100, 900 year. This sum capitalized
would be much greater than that which would
be required to rebuild the entire canal Much
Of this coal was used by the government and
the government ought to be interested in it